Digital real estate investment platform for Co-ownership in hospitality real estate assets. Building a digital, integrated and regulated investment model, through FinTech and PropTech.
Current Status
The platform is ready with an integrated workflow for: Sourcing properties Selection of investment Investment analysis and Offer stage
Recorded first users of the platform and regular organic traffic on the web page. Established contracts with brokers and developers in the market. Waiting for regulatory approvals on the business model.
Market
For investors looking to maximize their exposure and gain returns from an alternative real estate asset class, we are providing MENA region first dedicated digital platform, for listing investment opportunities in hospitality real estate assets.
Knight Frank’s recent research showed that there are more than 500 branded residences across the world, with several hundred more in the pipeline, the majority of which are hotel branded.
In a separate report by Savills in Nov 2021, has revealed that the last ten years has seen the number of branded residences increase by 230%, adding more than 50,000 units across 356 schemes around the world.
Problem or Opportunity
Low visibility of hospitality real estate assets investment opportunities. Unqualified leads on property listings portals. Endless offline, back and forth interactions Limited access for investors to high quality investment opportunities Uninformed investment decisions. Lack of financial literacy of market players. High entry capital requirement. High fees.
Tapping a market of 5.9 billion AED in buy-sell transactions value, with hotel rooms and hotel apartments units, recorded in 2021 in Dubai alone. Dubai has more than 140k hotel and hotel apartments rooms supply and is a global leader in the branded residences market rivaling Miami and New York for completed and pipeline projects according with Kinght Frank ME latest report (May 2022)
Solution (product or service)
Integrated digital real estate investment platform, for co-ownership in hospitality real estate assets, through fractional title deed. Investors will be able to Source, Transact, Earn passive income and track performance of his portfolio.
SOURCE – TRANSACT - EARN HOTEL, CONDO HOTEL UNITS, HOTEL APARTMENT, BRANDED RESIDENCES/SERVICED APARTMENTS Creating value for Buyers - Sourcing, Deal Flow, Closing, Ownership management Creating value for Sellers - Listing, Marketing, Deal Flow, Closing & Post Transaction
Competitors
This will be the first and only property investments marketplace in Middle East, specifically designed for transactions with real estate hospitality assets.
There are 2 more operating property investment platforms based in Dubai, but on crowdfunding model.
Other real estate investment platform models from USA are:
https://www.roofstock.com/
https://www.crowdstreet.com/
https://www.ten-x.com/commercial/
Advantages or differentiators
Specific asset class
Digital transactional process
Fractional ownership model with issuance of Title Deed on the portion of the property owned
Owners Management Module
Market data and financials driven investment decision
Finance
A market of 5.9 billion AED in 2021, in buy-sell transactions value for these type of assets in Dubai alone. We can capture 10% of this market in the first year through partnerships with brokers, existing owners and developers.
The Real Estate Agency commission normally is 2% of the property sale value, which equals to 11.8 million AED (3.2 mil USD) that would translate in to our revenues for transactions, from the direct issuance of fractional title deed.
Besides that, a 0.5 % AUM fee which would equate to 2.9 million AED (800k USD) as revenues
Transaction commission - Commission percentage fee for realized transactions on individual units
Cost of Capital - For large assets acquisitions we will charge a fee to sponsors for raising funds for project on to the platform
Software SAS - Owners Management Module SaaS subscription to sponsors
AUM fee - Applied yearly on individual investors portfolio value
Money will be spent on
Technology Product development
Marketing
Running costs
Offer for investor
Flexible to negotiate a win-win solution taking in to consideration the early stage of the company and potential growth of the company and the partnership.
Hospitality market performance in general is exposed to events like pandemics/travel restrictions, oversupply in the market, economic cycle and destination seasonality.
Incubation/Acceleration programs accomplishment
Applied for DIFC Fintech Hive Accelerator program and Flat6Labs Ignite - AD Fall 2022 Cycle
Won the competition and other awards
With the participation in the above programs will be able to secure the exposure and recognition.