Estating, the European property Prop -Fin-Tech that facilitates small-scale investments in individual properties, has placed the world’s first property on the basis of a bankable “Real Estate Linked Certificate” in Miami, USA. The securitization solution allows investors to acquire participations in selected properties worldwide and thus 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 access to the scarce and significantly oversold asset class of real estate investments.
The securities (ISIN: CH1142529275) were placed with a total of twelve investors for a luxury apartment on the 39th floor of “Legacy Towers” in Miami. The property is located directly on Biscayne Bay and captivates thanks to its bayfront view. Estating expects a positive cash yield and a significant potential for value appreciation, thus providing an effective hedge against inflation.
“With the issue of our RELINCs on an individual property we are writing investment history. For the first time ever investors can acquire participations in selected individual properties within the regulated financial market easily and conveniently through their investment advisor and transfer these to their securities account,” explains Martin Halblaub, the Chairman of Estating. “The placement in full of our first project shows us that the interest on the part of investors in such a solution is great. The issue was oversubscribed many times over.”
“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. At the same time 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 those 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, Founnder and Chief Client Officer at Estating.
The product is being marketed exclusively through financial advisors and wealth managers. Their clients thus 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.