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Fraxtor Private Limited and FRX Capital Private Limited are separate legal entities. The Fraxtor Platform is owned and operated by Fraxtor Private Limited. FRX Capital Private Limited is an unregulated Fund Management Company.

Fraxtor Private Limited and FRX Capital Private Limited shares common ultimate shareholders.

 

Fraxtor Private Limited is licensed by the Monetary Authority of Singapore for Dealing in Capital Markets Products that are securities and units in a collective investment scheme.

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 that apply to retail investors.

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.

Fraxtor is a blockchain enabled real estate co-investment platform aimed at providing investors easy access to global real estate investment opportunities otherwise out of reach. Fraxtor enables investors to make byte-sized investments with the click of a mouse alongside seasoned real estate investors and funds, leaving the hassle of real estate management to the professionals.

An Accredited Investor is someone who meets the requirements set out by the Monetary Authority of Singapore (MAS) and has opted in to be treated as an Accredited Investor. In general, Accredited Investors have access to investment products that are not offered to retail investors. On the flipside, Accredited Investors do not have the regulatory protection retail investors enjoy.

Accredited Investors are assumed to be better informed, have better access to relevant information to evaluate investment opportunities, and therefore, would require less regulatory protection. Investors who opt in to be treated as Accredited Investors therefore forgo the benefit of certain regulatory safeguards.

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 that apply to retail investors.

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.

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 (2FA) to prevent unauthorised logins. 2FA is required for any transactions on the platform

Fraxtor’s blockchain enabled web platform allows full traceability of immutable transactions. Once a transaction is made, it cannot be reversed.

Unless you login details are easily accessible on your laptop or mobile phone and a bad actor has access to your mobile one-time pin, your account will still remain secure. 

However, if you feel your account could be compromised after losing your phone and tablet, please do not hesitate to contact us at contact@fraxtor.com to temporarily lock your account or change the password.

Please indicate the subject of the email as – “Account Security [Unique Investor Code]”

No. Fraxtor will never ask our users of such details through the above mentioned means.

Your (OTP) acts as an extra layer of security placed on our website to prevent fraudulent activities and to protect our clients.

Please contact us at support@fraxtor.com as soon as possible if you believe that your account has been compromised.

Please indicate the subject of the email as – “Account Security [Unique Investor Code]”

A trust is a relationship where property is held by one party for the benefit of another party. It is created by the owner, also called a “settlor”, “trustor” or “grantor” who transfers property to a trustee.

A collective investment scheme is an arrangement in respect of any property, which satisfies the following elements:

• Participants have no day-to-day control over management of the property
• Either or both characteristics are present:
  • Property is managed as a whole by or on behalf of the manager
  • Participants’ contributions are pooled, and profits/income from which payments are to be made are pooled
• Purpose or effect of the arrangement is to enable participants to participate in or receive profits/income arising from the property

A Collective Investment Scheme could be structured as an incorporated or unincorporated entity (such as a trust or partnership) which owns a property.

Stamp duty is a tax imposed on the sale of property/property ownership by the state government. 

Seller’s Stamp Duty

In Singapore, according to IRAS, the seller stamp duty (SSD) is a levy payable on all residential properties that are acquired on or after 20 Feb 2010 and disposed of within the holding period of 3 years.

For a full illustration of the SSD rates, please refer to the IRAS website.

Buyer’s Stamp Duty

You are required to pay BSD for documents executed for the transfer or sale and purchase of property located in Singapore.

According to IRAS, the Buyer Stamp Duty (BSD) is payable on the transfer or sale and purchase of properties located in Singapore. Prior to 20 Feb 2018, the top marginal BSD rate for both residential and non-residential properties was 3%. With effect from 20 Feb 2018, there are differentiated BSD rates between residential and non-residential properties. 

For a full illustration of the BSD rates, please refer to the IRAS website.

Additional Buyer’s Stamp Duty

Additional Buyer Stamp Duty (ABSD) is a levy applied on top of the existing Buyer’s Stamp Duty (BSD). ABSD is computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).

The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential property:

A. Whether the buyer is an individual or an entity

B. The residency status of the buyer and

C. The count of residential properties owned by the buyer

For a full illustration of the ABSD rates, please refer to the IRAS website.

Gross Plot Ratio is the ratio of maximum allowable Gross Floor Area to the Land Area (ie: For a 500 sqm land plot with a Gross Plot Ratio of 2.0, the maximum Gross Floor Area allowable is 1,000 sqm).

Generally, the higher the plot ratio of a land, the more intensively the land can be used (can have more units and more storeys).

Private equity (PE) is ownership or interest in an entity that is not publicly listed or traded. A private equity fund is formed when partners at a private equity firm raise capital from investors and pool it together to form a fund. 

Private equity investment comes primarily from institutional investors such as banks, insurance companies, pension funds, or Accredited Investors.

Simply put, asset management firms manage funds for individuals and companies. They make well-informed investment decisions on behalf of their clients to grow their wealth. Asset management services are typically offered to high net-worth individuals (HNWIs), where clients put their faith in the expertise of asset managers, giving them a carte blanche role in the decision-making process.

Some asset management companies in Singapore include UBS, Aberdeen Standard Life, Lion Global Investor, DBS and Vanguard Group.

Return on Equity (ROE) is calculated by dividing the Net Income by the shareholders’ equity. Typically,  when leverage is used on a profitable investment, the ROE will be increased.

Net present value (NPV) is used in capital budgeting and investment planning to analyze and compare the profitability of potential investments. NPV is the difference between the present value (discounted using an appropriate discount rate) of cash inflow and outflows over a period of time.

A positive Net Present Value would generally represent a worthy investment. In general, for any two investments with similar risk levels, the investment with a higher NPV is the more profitable investment.

The IRR (also known as Money-Weighted Rate of Return) incorporates the size and timing of all cash inflows and outflows. This is particularly important in real estate investments because unlike other asset classes such as equity or fixed income products, cash flows in real estate can come in unorthodox sizes, at irregular timings.

By using a metric (IRR) that accounts for irregular cash flows, an investor is able to compare the return profile of the real estate investment with that of the other traditional asset classes.

IRR ( Internal Rate of Return) is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. 

To put simply, the IRR of an investment would be the compounded annual return of the investment, assuming all interim cash flows (if any) are reinvested at the same rate. Generally, the higher the internal rate of return, the more desirable an investment is.

A bond is a fixed income instrument representing a debt obligation between the issuer (borrower) and the bondholder (lender). The indenture states all the details of the loan: maturity date, face value, coupon rate, and the frequency of coupon payments.

Typically, the owner (lender) of a bond receives 2 semi-annual coupon payments a year, and the face value of the bond is due to be paid back by the borrower on the maturity date. For instance, a $1,000 face value 10-year bond with a 5.0% coupon rate pays two $25 coupon payments a year, and the face value of $1,000 is redeemed at the end of 10 years.

LTV is a financial ratio used by lenders to express the ratio of a loan to the value of an asset purchased. In Real estate, this term is commonly used by banks and lenders to represent the ratio of the first mortgage line as a percentage of the total value of the property.

The capitalization rate (or cap rate) is used in commercial real estate to estimate the potential rate of return generated on a real estate investment property. 

Capitalization rate is calculated by dividing a property’s net operating income by the current market value.

This ratio, expressed as a percentage, is an estimation for an investor’s expected rental yield on a real estate investment, assuming it is purchased entirely in cash.