FinTech start-up Fraxtor raised more than S$9 million in the last 9 months from its community of real estate co-investors
Fraxtor has raised funds for4projects since March2020,comprising twolanded residential developments,one industrial developmentproject in Singapore,and one student accommodation project in the UK.
The Fraxtor platform provides investors with hassle-free access to quality real estate investmentsfrom as low as S$20,000.
Fraxtor's unique combination of a digital platform powered by blockchain technology and brick-and-mortar real estate expertise provides Accredited Investors with easy access to quality real estate investments.
SINGAPORE,Dec. 15,2020 --Fraxtor Private Limited ("Fraxtor"),operating an online real estate co-investment platform,has successfully raised more than S$9 million on its platform from its community of Accredited Investors (AIs) despite the pandemic led economic downturn in the last nine months. The funds raised were deployed in multiple real estate development projects in Singapore and the United Kingdom (UK).
In its latest funding exercise,which closed in late November 2020,Fraxtor raised S$3.4mil for a freehold landed residential development project in Singapore. With an estimated gross development value of S$13.2 million,the project is expected to yield an internal rate of return (IRR) of 15% p.a. over a two-year period. A testament to its growing community of investors,the project was fully subscribed within a week.
In the past nine months,Fraxtor had partnered established real estate fund managers such as Q Investment Partners and ZACD Capital to provide investors access to quality investment opportunities with a lower capital outlay. In the following months,Fraxtor has partnered Australian-based SMATS Consortium and Canadian-based ARCH Corporation to provide its co-investors access to real estate investment opportunities,diversified in geography and risk profiles.
"Our partnership with other Fund Management Companies and property developers allows us to offer a more diverse selection of real estate investment products to our co-investors. We look for unique asset types which have structural shortages or strong growth potentials such as food factories,student accommodations and nursing care homes," said Oliver Siah,Co-Founder and CEO of Fraxtor.
Fraxtor,abbreviated from Fractional Investor,was co-founded by seasoned real estate investors Oliver Siah and Rachel Teo in 2017. By amalgamating real estate investment expertise and the blockchain technology,Fraxtor aims to create a digital platform built on the ethos of trust,convenience,access and diversification.
Focus on Real Estate Investments
Fraxtor's business model has firm roots in the fundamentals of real estate investments. Leveraging on the collective experience and business network of its founders and investment committee,Fraxtor is in the position to source and curate quality real estate opportunities for its community of co-investors. This is achieved by partnering established fund managers with expertise in niche asset classes or geographical focus. Fraxtor lowers the barriers to entry,by allowing investors to invest in byte-sized amounts,starting at $20,000.
In 2020,partnerships with ZACD Capital and Q Investments Partners provided investors access to investments in a local food factory development and a purpose-built student accommodation development in the UK respectively. Kickstarting 2021,Fraxtor is partnering Australian-based SMATS Consortium and Canadian-based ARCH Corporation to provide its co-investors access to real estate investment opportunities in Australia and Canada.
Tech/blockchain technology
The Fraxtor platform fully digitises the investment journey from onboarding,through investment subscription and portfolio management. Investor onboarding may be conducted remotely with MyInfo (by GovTech) and facial recognition applications on the platform. Onboarded investors will have full access to the offers on platform and peruse all related information before subscribing to an investment offer. Investors can also access details of their investments and updates on these investments through the platform.
Fraxtor uses blockchain technology and smart contracts to tokenize real estate projects through the issuance of digital securities. This allows for greater efficiency and lowers transaction costs,allowing investors to invest in byte-sized amounts.
"We believe that the blockchain technology can make Fraxtor's successful business model more scalable and accessible while at the same time giving investors full control over their portfolio in a secure and transparent manner." - Marcelo Garcia Casil,CTO of Fraxtor.
About Fraxtor
Incorporated in January 2017 and commencing operations in June 2019,Fraxtor stands for "Fractional Investors" and aims to build an ecosystem of co-investors to pursue global real estate investment opportunities together. Led by Oliver Siah,Rachel Teo and seasoned investors from the family office of Daniel Teo & Associates (DTA),Fraxtor focuses on niche investment opportunities which Accredited Investors typically do not have access to,either due to the sheer investment size or sourcing expertise.
Leveraging the deep experience of Fraxtor's investment committee,as well as DTA's domain knowledge and strong network in the real estate industry,Fraxtor sources for deals in Singapore and around the world which are presented on its blockchain-powered platform for subscription by its community of co-investors.
Besides enjoying the convenience of co-investing on a digital platform with one central body handling all the due diligence work and presentation of deal information,co-investors can also bring potential investment opportunities to Fraxtor for evaluation,before the deals are presented to the community.
Fraxtor is exempted by class exemption for Dealing in Capital Markets Products and Fund Management under the Securities and Futures Act (Singapore).
