CoAssets plans to crowdfund more Singapore developers, after raising $500,000 from over 40 investors for a boutique bungalow project in less than one month, reported OPP.Today.
“We are extremely pleased with the outcome. Prior to Mountbatten Lights, all of our real estate crowdfunding projects were for overseas developers. With the success of our first Singapore-based real estate project, we can better cater to funders who prefer local projects,” said CoAssets’ Co-Founder and CEO Getty Goh (pictured).
The response was better than expected despite returns for the project being only six percent compared to more than ten percent for overseas developments. While proceeds from local property projects are generally lower, they tend to be more secure. This proves that there are investors who are interested in security, rather than high returns, noted Goh.
Mountbatten Lights comprises four detached bungalows in the East Coast area. The development is estimated to cost below $14 million to build, while the total market price stands at $30 million based on independent valuation. Targeted for completion by early-2016, it is being developed by Chia Quee Khee, a retired attorney turned private developer.
“I used CoAssets to understand how the crowdfunding platform works and to see if crowdfunding could be used for my other projects. The crowdfunding process is easy to do, and provides a quick avenue to raise funds. I can recommend it to others,” Chia added.
Since launching in July 2013, CoAssets has paid out more than $200,000 to its investors. But by year-end, it hopes to generate over $700,000 in returns as more crowdfunding projects mature.
The Australian-listed company crowdfunds for residential and commercial properties in Asia, Australia, the United States and United Kingdom. Currently, it has over 13,000 members across the region.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
