Online Real Estate Platform Fraxtor Private Ltd Acquires In-Principle Approval for Capital Markets Service License from MAS

Fraxtor Private Ltd, an online real estate platform, has acquired in-principle approval for its Capital Markets Services (CMS) license by the Monetary Authority of Singapore (MAS).

The CMS License, after it’s issued, should allow Fraxtor to issue security tokens including debentures and collective investment schemes that may include capital market products.

These aren’t being covered under the existing dealing exemptions. In addition to its domestic pipeline, Fraxtor intends to partner with property fund managers based in Europe and Australia to provide real estate security tokens to accredited and institutional Investors.

Fraxtor has gained a lot of popularity for its involvement in a landed property deal at 21 Mount Rosie. Via Fraxtor’s platform, investors can take part in the $43.8 million deal which has helped with paving the way for the development of the 30,660 sq ft site into 7 luxurious homes at the top of the Goldhill Estate.

The deal reportedly received a really positive response from Fraxtor’s clients and had been fully allocated in just 90 minutes from when it was launched.

During the past couple years, Fraxtor has been working closely with various fund managers to provide international development deals like the Purpose Built Student Accommodations in the UK as well as Long Term Care Homes in Canada.

Oliver Siah, Co-Founder of Fraxtor, stated:

“Our platform allows investors to gain exposure to these unique real estate deals not commonly accessible, from as low as $20,000. This significantly lowers the entry barriers for investors to access such funds which typically require minimum investment commitments of $500,000 to $1,000,000 from investors.”

Fraxtor’s maiden project from 2019 had allowed investors to take part in the development of a set  of semi-detached houses in the Adelphi Estate along Upper Thomson Road. Even though there had been delays because of the Coronavirus pandemic, both properties have now been sold and investors’ returns are on track to hit pre-COVID targets.

Rachel Teo, Co-Founder of Fraxtor, remarked:

“We have built the Fraxtor platform to make it easier for investors to access property deals by developers and professional fund managers. The platform streamlines the onboarding and subscription process, making investing in real estate hassle free.” 

Notably, the Fraxtor platform makes use of smart contracts to issue security tokens on the Ethereum network.

The value for these digital tokens are not impacted by the price fluctuations in the digital assets markets but perform according to the underlying real estate investment. The tokens may represent units of debentures, bonds or collective investment schemes.

Marcelo Garcia Casil, Fraxtor’s Chief Technology Officer, explained:

“The ERC-1404 Security Token Standard is the most common Tokenisation standard and it allows our Tokens to be compatible with regulated Digital Asset exchanges. This is an avenue of liquidity for a traditionally illiquid asset.”

Fraxtor’s investment platform mainly focuses on real estate investments. The platform has been designed to leverage the extensive experience and diverse business network of its founders and listing committee.

As noted in the announcement, Fraxtor aims to source and curate quality real estate deals for its co-investors. By teaming up with established fund managers and developers with experience in niche asset classes or geographical focus, Fraxtor has been able to further expand investors’ access to private equity real estate investments.

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