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?

Fraxtor is exempted by class exemption for Dealing in Securities and Fund Management under the Securities and Futures Act (Singapore), because we (i) deal in property, which does not include any capital markets products; and (ii) only deal with accredited or institutional investors. Fraxtor adheres to the Monetary Authority of Singapore's Guidelines SFA04-N02 and has in place stringent client onboarding checks and anti-money laundering reviews to ensure that only authentic and financially-sound accredited investors are admitted into the community.

Who can invest?

Only "Qualified Investors" who are "Accredited Investors" and/or "Institutional Investors can invest. "Accredited Investor" means an individual A) whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount; B) whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, where “financial asset” means — 1) a deposit as defined in section 4B of the Banking Act; 2) an investment product as defined in section 2(1) of the Financial Advisers Act; or 3) any other asset as may be prescribed by regulations made under section 341; or C) whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount.

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. Co-investors can also enjoy the benefits of a strong eco-system:
1) Resource savings: Fraxtor handles the due diligence and market study before each deal is presented to the community for co-investment 2) Alignment of interests: Stakeholders of Fraxtor Private Limited will contribute their own funds in every deal, which will be declared on the project information sheet. Hence, their interests are aligned with co-investors
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?

An “Accredited Investor” is defined by the Monetary Authority of Singapore (“MAS”) in section 4A(1)(a) of the Securities and Futures Act (“SFA”), Chapter 289, if he/she meets the one of the following criteria: 1) Net personal assets exceeding S$2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
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. For further details, please refer to “FAQs on the Definition of Accredited Investor and Opt In Process” on MAS’s website.

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 contact@fraxtor.com 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. We want to attract longer-term investors who share the same investment horizon as Fraxtor. After all, real estate assets need to be given time to mature to realise capital gains. We look at an average holding period of around 3 to 7 years, depending on each project. Co-investors who need to divest their stakes during the holding period may approach Fraxtor’s Management for discussion.

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. Please subscribe to our mailing list here to be informed of any changes with regards to this.

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. To view our current offerings, please sign up for a Fraxtor account here and get access to more investment opportunities.

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. For example, issuers of securities are exempted from issuing a full prospectus registered with the Monetary Authority of Singapore in respect of offers that are made only to accredited investors, and intermediaries are exempted from a number of business conduct requirements when dealing with accredited investors. Investors should consult a professional adviser if they do not understand any consequence of being treated as an accredited investor. You may find out more here.

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. Under the new opt-in regime, if an FI has assessed the investor to be an eligible AI and intends to treat the investor as an AI, the FI must first provide the investor with the following statements in writing: a. a statement that the FI has assessed the investor to be eligible as an AI; b. a statement that the investor may consent to be treated by the FI as an AI; c. a statement that the investor may at any time withdraw his or her consent to be treated by the FI as an AI; d. a general warning set out in the First Schedule of the SF(CI)R 2018; and e. a clear explanation in plain language of the effect of consenting to being treated as an AI, in sufficient detail to allow the investor to make an informed decision whether to consent to be treated as an AI or not. Next, if the investor wishes to be treated by the FI as an AI, the investor must then provide the FI with a written statement, or a signed statement recorded by the FI in writing, to the effect that: a. the investor knows and understands the consequences of consenting to being treated by the AI as an AI; b. the investor consents to being treated by the counterparty as an accredited investor; and c. the investor knows that he or she may at any time withdraw his or her consent, upon which the FI must not treat the investor as an AI. MAS has clarified that the investor's written statements may be provided in electronic form, such as through email. Verbal confirmation from the investor is also acceptable if the confirmation is recorded by the FIs in writing and such written records are signed by the investor. Electronic signature of such confirmation would suffice.

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 contact@fraxtor.com.