Frequently asked questions
What is Fraxtor?
Fraxtor is a real estate co-investment platform that allows like-minded accredited investors to access global investment opportunities in niche markets that are typically inaccessible to individuals, and with investment size that is too small for large institutional investors and too big for accredited investors.
What does "Invest in Byte-Sized Real Estate" mean? Do i own part of the property when i buy a share?
Instead of buying the entire property yourself, Fraxtor provides the convenience of purchasing bite-sized shares on its web platform (hence byte-sized). As a co-investor of the property, you will own the shares of a Segregated Portfolio Company ("SPC") which in turn owns 100% of the property.
Is Fraxtor regulated or licensed in Singapore?
Who can invest?
How is Fraxtor different from a REIT?
In addition to dividend payouts, co-investors can enjoy the potential capital upside of each property at the end of the investment cycle. They also have the freedom to choose to invest in any single property within Fraxtor’s portfolio, instead of a group of assets held by REITs.
1) Resource savings: Fraxtor handles the due diligence and market study before each deal is presented to the community for co-investment
3) Two-way relationship: Co-investors can also bring on potential deals for Fraxtor to evaluate and pursue
How secure is Fraxtor's platform
Fraxtor’s online platform incorporates Secure Sockets Layer (SSL) protocols to ensure that the connection between the server and web browser is encrypted and secure. Our users also have an option to use two-factor authentication to prevent unauthorised logins.
Fraxtor conducts the mandatory Know-Your-Customer (KYC) and Anti-Money Laundering (AML) screenings before onboarding an investor. Fraxtor’s blockchain enabled web platform allows full traceability of immutable transactions. We operate just like a private equity real estate fund, so we know who are our co-investors and every transaction that they have made with us.
Investors are encouraged to use our online platform for their convenience. Our relationship managers are available for platform demonstrations and familiarization. Investors who do not wish to use our online platform may still join the community with the help of our relationship managers.
Who decides what project to buy?
The deals will be led by seasoned investors from the family office of Daniel Teo & Associates, which is well known in the real estate industry, and has a wide network and a wealth of knowledge in real estate investment which Fraxtor can tap on.
The deal sourcing team will propose shortlisted assets to the investment committee for evaluation. Promising projects will be pursued with further due diligence and negotiations before presenting the deal to the community of co-investors.
How long is the investment period for each property? What happens if you sell a property?
For every deal, there will be an investment mandate and fixed holding period, typically between 3 and 7 years, depending on the project strategy. Fraxtor will buy/sell the property according to the mandate.
We would like our co-investors to share the same investment horizon, as we believe that real estate assets need to be given time to mature in order to realise capital gains.
After a property is sold, the proceeds will be distributed proportionately back to co-investors who had participated in the deal.
How can a co-investor bring deals to the platform?
Fraxtor welcomes all investment ideas as our overarching aim is to build an eco-system of like-minded co-investors of properties globally.
We are happy to explore any potential investment that is brought to our attention. We will assess the merits based on our due diligence matrix before we put the investment onto the Fraxtor platform for investors.
Who can join Fraxtor as a co-investor?
As part of our Phase 1 launch, we are inviting Accredited Investors to join Fraxtor as co investors for a number of deals that we are working on.
What is an Accredited Investor?
2) Financial assets (net of any related liabilities) exceeding in value S$1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount; or
3) Income in the preceding 12 months is not less than S$300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount.
What is the minimum investment quantum for each deal?
The investment quantum will vary across projects but the absolute minimum for each deal is at least S$50,000 or its equivalent.
What are the typical fees for co-investors?
In general, there will be an origination fee when investors co-invest in an asset, an annual management fee, as well as a performance fee.
The fees structure will depend on the investment type, the amount of work involved in deal origination, due diligence and ongoing oversight. Project-specific fees will be shared with investors when each project is launched.
How can I track the performance of my co-investments?
Fraxtor has its own secure online platform to allow co-investors to create their own portfolios based on geography, asset type and risk, as well as track each investor’s portfolio performance.
Alternatively, you can approach our Relationship Managers at firstname.lastname@example.org or +65 9678 0773.
Can I sell the units that I own and get all my money back?
There is currently no secondary market on the Fraxtor platform.
Can a US citizen/tax resident invest with Fraxtor?
Currently, we are unable to onboard investors who are a citizens or tax residents of the US. We are exploring cost effective avenues to onboard such investors and seek your patience in the interim.
Why am I unable to see any current offerings on the website?
As we are bounded by MAS regulations, we seek your understanding that we cannot reveal any product offering until we have successfully on-boarded an investor.
How are Accredited Investors treated differently from normal investors?
Accredited investors are assumed to be better informed, and better able to access resources to protect their own interests, therefore they require less regulatory protection. Investors who agree to be treated as accredited investors will forgo the benefit of certain regulatory safeguards.
What does it mean to Opt in as an Accredited Investor?
With the introduction of the SF(CI)R 2018 as amended by regulation 2 of the Securities and Futures (Classes of Investors) (Amendment No. 2) Regulations 2019 ("SF(CI)R Amendment No. 2"). Under the new regime, the default position will be that all new eligible AIs are to be treated as retail investors, unless they expressly consent to be treated as AIs in accordance with the prescribed requirements.
How do I opt out as an Accredited Investor?
To opt out as an Accredited Investor, please fill up this form (Link) and email it back to us at email@example.com.