CoAssets has recently completed its first real estate crowdfunding project in Singapore, raising roughly USD $375,000 (S$500,000). The project, Mountbatten Lights, attracted over 40 investors and took less than a month to crowdfund the amount. This is the first Singapore-based real estate project crowdfunded by the firm, a sign of the local investors’ confidence in crowdfunding.
…the positive responses they received from the investors despite the lower rate of returns is an indicator that majority of the local investors are looking for more secure projects instead of just plain high returns.
The expected annual return from this investment is capped at 6%. This is relatively low compared to the 10% that investors receive from overseas projects. However, the upside is local projects are more secure than their overseas counterparts, and investors are fully aware of that. Getty Goh, CEO and co-founder of CoAssets said that the positive responses they received from the investors despite the lower rate of returns is an indicator that majority of the local investors are looking for more secure projects instead of just plain high returns.
The project, presently under construction and its completion is scheduled for early 2016, is a boutique with bungalow collection. According to third-party appraisal reports, Mountbatten Lights is valued at USD $22.5 million (S$30 million), whereas its cost is below USD $10.5 million (S$14 million).
CoAssets is progressively growing – with the number of projects and investors using the platform increasing every year. The investors are also frequently receiving returns. To date, the company has crowdfunded projects which have returned over USD $150,000 (S$200,000). Based on the increase in the number of completed crowdfunding projects, the company is expecting to achieve total redemptions and payouts of over USD $525,000 (S$700,000) this year.
CoAssets was launched in July 2013 as a crowdfunding platform for residential and commercial properties. The company crowdfunds real estate projects in Australia, Asia, United States, and United Kingdom. Its membership is increasing since its establishment and has reached over 13,000 – the majority of them coming from Malaysia, Singapore, and other parts of the Asian region.
Featured Image: Singapore