Estating works: we made real estate truly bankable
To unlock the door and make investing in real estate a possibility for all, it took some ground-breaking financial engineering. Firstly, we had to create a way to make an individual property a security that could be fractionalized. Secondly, we had to match the requirements of Luxembourg, Europe’s leading securitization and one of its most respected banking locations, so that it could be purchased, sold and booked inside the banking system. And finally, all this had to work in unprecedented small units.
This has been achieved.
Our Luxembourg securitization vehicle Estating Property Vault SA issued late 2020 a €10,000 certificate named “RELINC Mountain Garage” with ISIN code XS2258969331. This certificate was delivered against payment from BCEE, the AA1 rated Luxembourg state owned bank as paying agent, through Clearstream and Euroclear, to the securities account of a HNWI at two banks in Europe.
So whilst other start-ups started in a garage, we started with a garage to issue our first Real Estate Linked Certificate (RELINC). We believe that this is the world’s smallest ever securitization and proves the ability for Estating to reach everybody, be they investing €1 or €1mn.
We begin with the qualified investor, offering them the opportunity to pick the property that suits their profile, select the fraction they wish to invest and purchase this investment inside the banking system. The distribution of this opportunity will be through financial advisors offering them the chance to refresh, rebalance and extend their clients investment portfolios. The first selection of properties is now available in Berlin, Madrid and Miami.
Curious to learn more?
- Are you a property developer, agent or seller wanting to access a new and broad investor base?
- Are you a financial intermediary interested in distributing this new product to your qualified investor clients?
- Are you a qualified investor wanting to invest in prime real estate?
Our co-founders Martin and Daniel would be very happy to discuss!