If there's anything that we've learned
during Covid-19, it is that the potential of digital financial services
in providing a secure, low-cost and contactless tools has become more
apparent during the crisis.
The
reliance on convenience that digital financial services are starting to
innovate has driven the demand needs for more fintech services.
Shareable Assets (SA)
has positioned itself as the disruptor of the global real estate market
offering fractional and affordable ownership in institutional-grade
real estate which were previously only available to accredited high net
worth investors.
The company prides itself as the "Amazon in the real estate industry"
and is the only one globally so far that has been approved as a fintech
based securities investment company that utilizes blockchain technology
for real estate. They have also received the Capital Markets Services
(CMS) license from the Monetary Authority of Singapore (MAS) that allows for the digitalization and tokenization of real estate trading using blockchain technology.
How It Works
Shareable Asset works by dividing real estate ownership into smaller pieces to allow accessibility for anyone to invest.
For
instance, a real estate commercial building which costs $1m is divided
into 100 blocks of $10,000 each. Based on the number of blocks that a
person owns, the allocation of equity and voting rights is shared
proportionally. This proportion also applies the same to the revenue and
divestment distribution.
The
security token will be available and issued through the Shareable Asset
platform sold from the establishment of the Special Purpose Vehicle
(SPV) entity.
Value Proposition
As
most readers would know, I spent a brief period working in the Real
Estate Investment Trust ("REIT") company in the past. Today, I am
working in an e-commerce fintech enabler start-up company providing
services to businesses and consumers. Because of this, I tend to
appreciate companies that tend to come up with interesting value
proposition and business model that is able to add values to investors.
Unlike
the physical real estate market where investors are required to put in a
minimum of hundreds to thousand dollars of funds, Shareable Asset is
able to facilitate entry-level investments for the retail masses for as
low as $100. This gives an opportunity for anyone who wishes to dip
their toes into the real estate market exposure. As owners of the real
estate under the equity structure, rental income will accrue and be paid
to investors for as long as the space is tenanted.
Some
may argue that the Real Estate Investment Trust (REIT) vehicle we have
today in the market may provide the same value proposition when it comes
to owning real estate at minimum funds but let me give you an overview
run-down of the other differences.
First,
the platform listing fees for Shareable Asset are much lower than REITs
as a listed entity as it requires only to maintain the CMS license
which is a regulatory requirement from MAS. For REITs, the requirement
to adhere with reporting guidelines and compliance regulation means the
company will spend a bit more overhead costs to maintain its listing
status.
Second,
Shareable Asset managers take a relatively small amount of cut as a
percentage of the management fees as opposed to REITs in the range of 1%
to 5% depending on transaction size. REITs typically incur a base
management fees of between 0.25% to 0.50%, which is on top of the other
performance and acquisition or divestment fees that the REITs managers
are entitled to.
Third,
Shareable Asset is able to tap and penetrate into the larger real
estate market globally using its blockchain technology capability.
REITs' portfolio size is usually at least USD500 million to USD1.0
billion to be eligible for listing and they target high-value real
estate.
Last
but not least, Shareable Asset is a single platform managing a
diversified portfolio with the same objective and aspiration. Hence,
investors will be assured that they are in good hands with a regulated
platform that shares the same vision as investors.
Steps To Sign Up
The key to using blockchain technology to invest is simple and secure.
To do this, download the "Shareable Asset" application in your mobile and register to sign up.
You will be asked to confirm your email registration address and insert a safe-pin to protect it.
You will also be asked to take a self-photo of your own picture, passport and proof of address, all securely online. Verification of account takes 1 to 3 business days, and you will be receiving notification about your account status.
Next, you will be asked to do a simply KYC form which has 9 multiple-choice questions. The questions asked are pretty standard in compliance with the requirement of MAS.
After that, you will be asked to select the properties that you are interested to invest in. The snapshot will provide detailed information that you need to know as an investor such as the location, tenure, leasehold and net yield rent. You will then choose how much money you want to invest (can be as little as $100) in each of the property you select.
You are good to go.
As part of the referral incentive program, you can now sign up and receive a free investment credit of £3 when you sign up using my referral links here.
Upcoming Launch by Mid-Jun 2020Steps To Sign Up
The key to using blockchain technology to invest is simple and secure.
To do this, download the "Shareable Asset" application in your mobile and register to sign up.
You will be asked to confirm your email registration address and insert a safe-pin to protect it.
You will also be asked to take a self-photo of your own picture, passport and proof of address, all securely online. Verification of account takes 1 to 3 business days, and you will be receiving notification about your account status.
Next, you will be asked to do a simply KYC form which has 9 multiple-choice questions. The questions asked are pretty standard in compliance with the requirement of MAS.
After that, you will be asked to select the properties that you are interested to invest in. The snapshot will provide detailed information that you need to know as an investor such as the location, tenure, leasehold and net yield rent. You will then choose how much money you want to invest (can be as little as $100) in each of the property you select.
You are good to go.
As part of the referral incentive program, you can now sign up and receive a free investment credit of £3 when you sign up using my referral links here.
Shareable
Asset will launch its first deal in mid-June 2020 through the
anticipated proof of concept student hostel's accommodation in
Sunderland, England. The asset will yield a net rental in the range of
between 8% to 9% per annum.
As
a testament of how "hot" these assets are in the market, Singaporean
based media company, SPH recently acquired £448m of student housing
accommodation in the UK while local property developers like Far East
Orchard and Mapletree Investments recently purchased £67m and £96m of UK
housing accommodations as well.
The
company will continue to look for suitable investment opportunities
that will provide good return on capital for investors in the few months
to come. The goal is to have at least another 10 to 20 investment
properties available for selection by the end of this year.
For more information, please visit their website at http://www.shareableasset.com.
For more information, please visit their website at http://www.shareableasset.com.
P.S: This is a collaboration with Shareable Asset on the abovementioned launch and a study of the blockchain technology but all opinions are mine solely and vetted.
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