CoAssets has successfully crowdfunded its first Singapore-based real estate project, a boutique cluster bungalow development called Mountbatten Lights.
Launched in July 2013, CoAssets crowdfunds for residential and commercial properties in Asia, Australia, the UK and US. The Australian-listed crowdfunding platform provides developers, agents and home or land owners with an alternative source of funding for their properties, linking them to investors who are keen to co-develop projects and co-purchase units.
The Mountbatten Lights project raised S$500,000 from more than 40 crowdfunders in less than a month, said CoAssets.
"The response to Mountbatten Lights was better than we expected," said Getty Goh, Co-Founder and Chief Executive Officer of CoAssets. "Despite the returns for the project being comparatively lower, at six percent, the project is more secure, which investors recognise. This demonstrates that we have investors who are looking for security, rather than high returns."
The project is currently undergoing construction, and is expected to be completed by early 2016. Based on third party valuation reports, Mountbatten Lights has a valuation of S$30 million, while the cost is below S$14 million, said CoAssets.
Prior to Mountbatten Lights, all of CoAsset's real estate crowdfunding projects were for overseas developers. With the success of this project, potential investors can expect to see additional Singapore real estate project on the online platform, said Goh.
According to CoAssets, users are now receiving payouts at a higher frequency as the platform takes on more projects. To date, projects on CoAssets have returned more than S$200,000. As the number of mature crowdfunding projects increases, the company expects to achieve payouts and redemptions of more than S$700,000 this year.
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