If you are using our mobile app, create your user account by simply clicking on the ‘Sign Up’ button on the landing page and follow the consecutive steps. If you are using our desktop app, create your user account by navigating to ‘Login’ in the top menu on www.estating.com, click on Sign Up at the bottom of the page and follow the consecutive steps.
Everybody can create a user account. We make a distinction between Financial Advisors, Qualified Investors and Other. However investing into RELINCs is currently only available for Qualified Investors (see the section ‘For Investors to understand the definition of a Qualified Investor) and is restricted for all other types of investors.
Investing into Estating RELINCs is currently only available for Qualified Investors, thus properties are only accessible for them. There are two ways to have access to properties:
(1) ask your financial advisor for more information about Estating, he/she will provide the access to the property specific page;
(2) if you are a qualified investor but you do not have a financial advisor, sign up in our mobile or desktop app and we will get in touch with you shortly to explain the next steps.
You can access the app in your browser via our website by clicking on ‘Login’ in the right side of our site's top menu.
If you are using our mobile app, access your user account by simply clicking on the ‘Log in’ button on the landing page and enter youremail and password. If you are using our desktop app, access your user account by navigating to ‘Log in’ on www.estating.com and enter your email and password.
If you are using our mobile or desktop app, reset your password by clicking on “Forgot password?” when logging in into your user account. Provide your email address and follow the instructions provided in the email that has been sent to your mailbox.
You can change your user account settings in our desktop app. Click on your user account name in the menu and select Personal Information. You can edit your user account credentials here.
If you want to end your registration, please send us an email at email@example.com. Note that any Estating RELINCs you hold in your securities portfolio remain unaffected by the termination of your user account on our platform.
Estating is a digital marketplace that democratizes real estate investments, opening the door to picking properties for everybody, connecting international supply with untapped global demand. Putting together your own real estate portfolio should be as easy as investing into listed stocks of your company of choice, in any size, across national borders, and without leaving the regulated financial system. We do so with a bankable and fractionalized investment product, that is protected inside the regulated financial system. We use a proven securitization framework and offer properties via our Luxembourg securitization vehicle ‘Estating Property Vault SA’.
In general, securitization is the process where an issuer designs and issues a marketable financial instrument. Assets, generally non-fungible, with predictable cash flows or rights to future income streams, are transferred from an originating company to an SPV (special purpose vehicle/securitization vehicle). This SPV subsequently issues securities backed by the assets transferred and payments derived from the underlying assets financed with the proceeds of the issuance. In the case of Estating, the securitization works as follows: Estating Property Vault SA constitutes the SPV/securitization vehicle and creates a separate compartment for every single property on its platform, which is registered as the official owner in the land register. Estating Property Vault SA may, however, also involve a blocker company in the transaction structure which will hold the property. Each compartment is treated as a separate and distinct part of the SPV’s estate. The Estating Property Vault SA, acting on behalf of the relevant compartment then issues notes (RELINC) with an ISIN number – provided by the relevant clearing system ISP – that is backed by this single property. Investors can, thus, subscribe to the notes. Once the issuance is, in general, fully subscribed, investors transfer the money via their bank to the paying agent or the custodian and the paying agent (or the custodian) transfers the notes to the investors’ securities accounts via the official financial clearing system. Ultimately, Estating Property Vault SA, acting on behalf of the relevant compartment purchases the property. The securitization vehicle and the compartments are structured to be insolvency-remote ring-fenced vehicles, it being understood that the compartments are note insolvency-proof and that each compartment of the SPV may be liquidated separately, without triggering the liquidation of another compartment and the rights of recourse of investors and creditors are limited to the assets of that specific compartment.
Estating Property Vault SA is incorporated under the laws of the Grand Duchy of Luxembourg as an unregulated securitization company (société de titrisation non-agréée) in the form of a public limited liability company (société anonyme) and is subject to the provisions of the Luxembourg act dated 22 March 2004, as amended. The company has been established as a special purpose vehicle for the purpose of issuing asset-backed securities.
For the primary market, i.e. for every property that is onboarded onto our platform for the first time, we charge a fee from the first time seller to cover the costs of converting the single property into a security and a fee from the first time investor to cover the costs of enabling distribution in fractions throughout the financial system. Secondary market fees will be charged from the seller and the buyer to cover the costs of transferring the note from one holder to another. Estating does not charge any recurring annual management fees, as opposed to real estate funds, for example.
If Estating has not been able to collect enough capital during the planned subscription period, i.e. the issuance target volume is not achieved, the subscription period could be extended (note that this depends on agreements with the property seller). In case an extension is not possible, the property will no longer be available on the Estating platform and prior subscriptions will be waived, i.e. the issuance will be canceled, no notes issued and no funds invested. Estating may find in some cases alternative sources of financing to close the gap up to the issuance target volume, but this will be analyzed case by case. In principle, the property seller only receives the full amount of the selling price once the respective property has been fully funded.
ISP Securities AG, Quirin Privatbank AG, and Branque et Caisse d’Epargne de l’Eta act as paying agents. Unless otherwise specified in the applicable pricing supplement, the relevant paying agent will hold the securities account and cash account for each compartment.
The investment process will take on average 6 to 8 weeks. The investment process consists of two steps, which are (i) a book building/subscription period which takes approximately 4 to 6 weeks, and (ii) the settlement process at the closing date.
A RELINC is a unique security that replicates the owner’s position of the property and gives investors access to the net cash flow of the property and capital appreciation.
As an investor, you invest in a RELINC, a note, issued in global bearer or intermediated form and governed by Luxembourg law. The notes constitute limited recourse pass-through obligations of the issuer (being the relevant compartment of Estating Property Vault SA) and rank pari passu and rateably, without any preference among themselves, with all other existing direct, unsecured, limited recourse, pass through indebtedness of the issuer, which has been or will be allocated to the compartment but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors’ rights generally.
The underlying assets will be composed by (i) the rights of the issuer under and in connection with the single property relating to each compartment and (ii) any receivables generated through the use of this property (including rental payments), including in respect of a property held through any intermediate vehicle purchasing these assets and issuing securities to the issuer or otherwise borrowing from the issuer, as well as (iii) any cash standing on the cash account and any authorized investment instruments held on the securities account.
A RELINC (Real Estate Linked Certificate) is a term that Estating uses to denote notes which are backed by single properties.
Investing into RELINCs is currently only available forQualified Investors and is prohibited for all other types of investors. The criteria for being a Qualified Investor defer from country to country.
According to European law, a Qualfied Investor is defined as follows: persons or entities that are listed in points (1) to (4) of SectionI of Annex II to Directive 2014/65/EU, and persons or entities who are, on request, treated as professional clients in accordance with Section II of that Annex, or recognised as eligible counterparties in accordance with Article 30 of Directive 2014/65/EU unless they have entered into an agreement to be treated as non-professional clients in accordance with the fourth paragraph of Section Iof that Annex.
RELINCs have not been and will not be registered under the US securities act of 1933, as amended (the securities act) or any US state securities laws and may not be offered or sold in the United States or to, orfor the account or the benefit of, US persons as defined in regulations under the securities act.
You are a Qualified Investor and you have a financial advisor: Create a user account or sign in to your user account on Estating using our mobile app or our desktop app. Ask your financial advisor to provide you the access to the current property offerings on our platform that would be suitable for you and explore the properties. Click on ‘Interested’ or ‘Invest’ for a specific property you like, an email will be automatically sent to us indicating your interest. Estating will get in touch with your financial advisor and provide him/her with a subscription agreement. Once you have signed the subscription agreement, we will recontact your financial advisor once the full subscription amount has been reached. If the property offer has been fully subscribed, your financial advisor will have to instruct your bank to buy the notes. The notes will be delivered into your securities account following a standard “Delivery-Versus-Payment” (DVP) process.
You are a Qualified Investor and you do not have a financial advisor: Create a user account or sign in to your user account on Estating using our mobile app or our desktop app. Currently, we only offer properties to Qualified Investors that are introduced by a financial advisor. If you do not have a financial advisor at current, unfortunately, we cannot provide you with any properties. You will get notified when this might change in the future, stay tuned!
The minimum amount to invest will be specified in the applicable pricing supplement.
Investment offers are created via a Luxembourg securitization vehicle. For each individual property, a separate compartment of Estating Property Vault SA is set up, Estating Property Vault SA, acting on behalf of the relevant compartment will directly or indirectly, through a blocker company, own the property. The compartment then issues securities with an ISIN number, which investors can subscribe to and which will be booked into the client’s securities account.
The notes’ pay-out structure and performance profile mirrors that of an actual ownership of the property, allowing investors to invest in self-picked properties and participate in its financial benefits without having to actually source, buy and manage a property. The risk-return component and economic consequences are the same as if you as an investor would directly own it. However, somebody else takes care of all the work associated, i.e. the daily property management.
Yes, owning multiple notes, either within one compartment or of several compartments, is possible and will grant proportionate multiple ownership rights.
Properties are owned by individual compartments of Estating Property Vault SA. The securitization vehicle and the compartments are structured to be bankruptcy-remote vehicles, meaning that any compartment of Estating Property Vault SA may be liquidated without triggering the liquidation of another compartment and the rights of recourse of investors and creditors are limited to the assets of the specific compartment they bought in. Explained in more layman terms: Each compartment is segregated from any other compartment, meaning that if the value of one compartment is zero (or potentially even negative), only this property needs to be sold and only its specific noteholder(s) get any liquidation benefit. There is no cross-collateralization.
Given the investment nature and the fact that there are multiple investors, i.e. noteholders, every investor that wants to use the property will have to rent it at fair market conditions.
As similar to other investment products, such as stocks, for example, investors should bear in mind the inherent risks of investing in RELINCs and the volatility that might occur. A real estate liquidity crisis or any other economic event can negatively affect the return of the compartment and its underlying property: tenants not being able to pay their rent, a decline in the market value of the property, a decline in demand for leased housing, etc… However, noteholders do not lose any of their rights and thus from a legal point of view, nothing will change. Investors decide at their sole discretion when they want to sell their notes and cannot be forced to do so.
The note is valued in the currency of the respective property. Thus, investors not denominated in that currency carry a foreign exchange risk and shall take this into consideration when investing in the property note.
Investors will benefit from both rental dividends and the capital value increase of the property. Rental dividend payments, or potential other benefits, less any costs, will be paid out at the next interest payment date as Net Compartment Asset Return Payment, as set out in the Private Placement Memorandum and Pricing Supplement. The value increase or decrease of the property will be materialized when the owner of the notes sells them to a buyer on the Estating platform. For the valuation of the properties, we work with professional third parties.
Every year, any potential surplus of rental income minus running costs will be distributed as an interest payment to the noteholder. We advise consulting your personal tax advisor for personal taxation topics. Valuation increases or decreases will be realized upon the sale of the notes (price per note) and the noteholder has to declare positive or negative returns according to the local tax rules. Estating is not providing any kind of tax information.
The noteholder can sell the note to any other Qualified Investor, either found via the Estating platform (secondary market), with the assistance of our distribution team or via any third-party Qualified Investor through its financial advisor that has not yet been onboarded on Estating. For the valuation of the properties, we work with third parties.
The notes are tradeable via “Delivery-Versus-Payment” (DVP) to other Qualified Investors. Estating is working on a secondary market platform to increase liquidity for that. Until then, Estating will support the seller in such a case to find a suitable buyer, but cannot guarantee neither the timeframe for a transaction nor a successful transaction at all.
We refer to the specific Risk Factors section of the Private Placement Memorandum for a complete overview of the risks involved for investors.
As an investor in a RELINC, you may take up a loan to pay for the RELINC. However, Estating currently does not accommodate leverage.
The notes will not be approved or recommended by any Luxembourg or foreign authority or securities commission. The notes will not be offered to the public or admitted to trading and will not be listed on a regulated market.
This is one of the risks inherent to an investment into a RELINC. In case this happens, the appointed property management company will look for a new tenant. Please also read the specific Risk Factors section of the Private Placement Memorandum for further information.
The rights of noteholders issued in respect of a compartment and the rights of creditors are, in principle, limited to the assets of that compartment, where these rights relate to that compartment or have arisen as a result of the constitution, the operation, or the liquidation of the relevant compartment.
For a full overview of the rights and obligations, we refer to the Private Placement Memorandum.
As with other financial instruments, your and all other investments are guarded by bank secrecy. There is no public disclosure of RELINC ownership. Estating’s paying agent (and custodian) knows which bank holds the notes on their client’s behalf. Your bank shows only your ownership in your securities account.
The note is best transferred via Estating, being both the issuer and offering a window to the market as well as assuring operational execution. Whilst technically a direct transfer may be possible, this is not advisable, given the heightened operational effort and cost involved.
If, for any reasons, Estating would sell the underlying property, you can bid for the property.
Investors can decide to change the service providers with a quorum of 90%, which should only be applied in case of material non-performance of these service providers.
In the event of an Excess Issue for a specific property, the issue price will not be affected and will not go up compared to the initial issue price established. The allocation will be based on the "first come, first served" principle.
Create a user account or sign in to your user account on Estating using our mobile app or our desktop app. Upon your first sign-up, Estating will verify your user account, and once approved, we will offer you full access to the current property offerings on our platform. Explore the properties and provide your client with the term sheet, including a QR code, of properties that you believe would match their investment needs. If your client likes the property and shows interest by clicking on ‘Interested’ or ‘Invest’, we will be automatically notified of his/her interest and will get in touch with you and provide you with a subscription agreement. Once your client has signed the subscription agreement and you have provided us a signed version, we will recontact you once the full subscription amount has been reached. If the RELINC offer has been fully subscribed, you will have to instruct your client’s bank to buy the notes. The notes will be delivered into your client’s securities account following a standard DVP process.
In our apps, you can click on the ‘Share’ button on a specific property page. An email template will be automatically generated, with the possibility to add the term sheet and QR code of the property in the attachment. Additional information documents about the property provided on our platform can also be added in the email. Add the email address of your client, add any personal views, and click on send!
Estating believes in strong partnerships and alignments of interest. We therefore share our fractionalization fee with our distribution partners.
If you want to list your property on Estating, send usan email on firstname.lastname@example.org andwe will provide you with further details. We are currently working on a frictionless online onboarding tool, stay tuned!
A compartment of Estating Property Vault SA will be the contractual buyer in the sales process. Estating Property Vault SA acts as the SPV/securitization vehicle and opens for every single property on its platform a separate compartment, which is registered as the official owner in the land register of the property.
For every property that is onboarded onto our platform for the first time, we charge a transaction advisory fee from the property seller.
As a property seller, Estating offers you an online distribution channel with a global reach. You get access to a global pool of potential buyers you previously had no access to. Our platform is fully digital and offers a high-quality user experience for investors who are interested in your property. Estating gives you the ability to sell faster and with less effort via our fully digital distribution channel.
Residential real estate represents ~80% of all global real estate. We currently focus exclusively on prime residential properties (top 10% of the local market) as these offers not only a financial but also an emotional benefit to investors. In terms of property valuation, we currently budgeted an average value per property of €1M.
For each property, we partner with a recognized property management company servicing the property end-to-end. This includes proper selection of lessees, all associated documentation and processes, as well as repairs and maintenance of the real estate to the highest standards. In the future, reports and controls will be provided to property owners via the Estating app.
The compartment holds a cash account on which a liquidity reserve for extraordinary liquidity shortage will be maintained. The cash reserve minimum amount to be maintained on the cash account is specified in the applicable pricing supplement.
Estating and its partners carry out thorough due diligence of each property prior to bringing it onto the platform. Once comfortable that the property is suitable and appropriate for onboarding and all legal documentation is in place, we will complete the onboarding with all related evaluations and forms. Only after the positive outcome of this whole process, the property will be presented to users of the Estating desktop and mobile app. Estating currently has three main approaches for property sourcing:
1. Via our in-house network as well as together with our global partners, we are identifying unique assets that we are confident will be sought after by our users.
2. When a specific property is frequently requested by our users, we will do our best to source it after the completion of our due diligence process.
3. From private owners who are seeking to sell all or a part of a unique property they own.
Estating’s goal is to aim for the best cover available on the market. It is tied to the current value of the real estate as reported regularly by our valuation partner, as opposed to the original purchase value. The real estate has comprehensive insurance against all eventualities (fire, theft, loss, damage, etc.) with only two usual exceptions being an act of God or war. Full details of the insurance policy are available upon request.
Estating has comprehensive insurance policies that protect the rights of other co-owners in case of damage or wrong-doing. The property will be maintained to the highest standards, as required by the property by-laws.
The issuance amount includes a cash reserve component. Typically the target cash reserve is twice the amount of the yearly expected running costs. Every year this reserve is re-evaluated and any future excess/deficit will be offset via increased/reduced pay-out to noteholders.
For each project, you can find an overview with the most important property information and investment conditions in our desktop and mobile app under ‘My Deals’, after you have received and scanned the respective QR code for that specific property. Additionally, you can then also download the specific term sheet of a property as a PDF. If you have subscribed to one of the properties, Estating will inform your financial advisor as soon as the subscription period has ended and the issuance target volume has been reached.
Estating has, with respect to each property, an onboarding process in place. Each transaction will be considered and approved by the board of directors of Estating Property Vault SA. The company gets audited annually.
Estating is building a valuation functionality that will allow both sellers and buyers to evaluate every property themselves at their discretion. For the distribution of net cash flow, Estating is developing a smart contract on a public blockchain (Ethereum). Therefore there is complete transparency on gross rental income, or potential other benefits, minus all cost components, leading to net cash flow for distribution. Based on this transparency, performance can be calculated.