Estating, the global Prop-Fin-Tech company that facilitates small-scale investments in individual properties, has placed the first Spanish property on the basis of a bankable RELINC (“Real Estate Linked Certificate”) in Madrid, Spain. The securitization solution allows investors to participate in selected properties worldwide and develop a globally diversified real estate portfolio at a low cost. The securities are issued with their own international securities identification number (ISIN) and asset-backed by the underlying real estate. Thus, for the first time ever, an investment in individual properties is fully transferable and can be held in a securities account. With a comparatively small outlay investors are given flexible and low-cost access to the scarce and significantly oversold asset class of real estate investments.
The securities (ISIN: CH1142529291) were placed for a sought-after luxury apartment at Gran Vía 30, Madrid, Spain. The property is located directly in the city centre, in a unique building, offering elegant and timeless design, designed by renowned Robledo Arquitectos. Estating expects a positive cash yield and a significant potential for value appreciation, thus providing an effective hedge against inflation.
“Shortly after our successful placement in Miami, we are now adding our first Spanish property to the platform. Investors can now participate in selected individual properties and build portfolios of their choice, all within the regulated financial market easily and conveniently through their investment advisor and within their existing securities account,” explains Martin Halblaub, the Chairman of Estating.
“Estating is lowering the entry barriers for investments in luxury residential real estate with a positive annual net cash flow. These properties, which could otherwise only be acquired in the form of a direct investment, are now accessible to a wider number of investors thanks to our securitization solution. The investor profits from the increase in value of the property, making it an ideal product in the current interest rate and inflation environment. In contrast to a direct investment, the investor does not have to take care of anything. Estating looks after all the resulting management tasks at cost price. It is a simple real estate investment for the modern investor,” says Matthias Oetken, CEO of Estating.
“We combine the benefits of a direct investment with the flexibility of stocks and bonds at lower costs and with higher net returns. In the future we hope to be able to lower the entry barriers further so that we can make real estate investments accessible to everybody,” says Daniel Vegue Dominguez, Founder and Chief Client Officer at Estating.
The product is being marketed exclusively through financial advisors and wealth managers. Their clients gain access to an attractive alternative to direct real estate investments, real estate funds and crowd-investing.
Only recently Estating opened offices in Zurich and Miami alongside the sites in Berlin, Erivan and Luxembourg so as to push ahead with its international property sourcing and marketing to financial services providers and wealth managers in the DACH and LATAM regions.
Estating is a property fintech with offices in Luxembourg, Berlin, Erivan, Miami and Zurich. The company was founded in 2020 and has set itself the objective of offering everybody the possibility to invest in real estate easily. Estating has developed the Real Estate Linked Certificate (RELINC): a security under Luxembourg law with its own international securities identification number (ISIN) which allows a person to acquire participations in selected individual properties from the trusted environment of their securities account – without the hassle of the traditional process. An investment in a selected property is therefore just as easy and transparent as an investment in specific stocks and bonds.