Singapore-based crowdfunding platform Fraxtor has partnered with private equity real estate firm Q Investment Partners (QIP) to offer an investment platform for institutional-grade real estate assets, the companies said in a statement Sunday.
The platform, called the Fraxtor Platform, will allow accredited investors to make investments starting from as little as 20,000 British pounds, the statement said.
Fraxtor, which is led in part by investors from the family office of Daniel Teo & Associates, sources deals globally to offer its base of co-investors on a blockchain-based platform.
Oliver Siah, CEO of Fraxtor, pointed to QIP’s strong track record in UK-based purpose-built student accommodation (PBSA), with around mid-teens returns in the segment over the past 10 years.
“I believe that the structural undersupply and proven long-term resilience of UK purpose-built student accommodation make it an extremely attractive and robust asset class,” Siah said in the statement. “The business of UK higher education is expected to see through the immediate challenges faster than many other business sectors and remain strong in the medium and long term.”
Peter Young, CEO of QIP, added the platform offered a new way for asset managers to raise funds and manage clients.
“Working with Fraxtor allows us to extend our reach to target a wider investor base, more importantly, democratise access into institutional-grade, alternative real estate opportunities,” Young said in the statement. “The entire investment experience from client on-boarding to the subscription is digitally enabled through the platform.”
Singapore investors will be able to use the MyInfo service from the city-state’s government to sign up for an account remotely, the statement said.