Real Estate Unlocked

The Restack is an online technology platform that provides users access to a curated set of real estate investment options and enables them to invest in any of the investments basis their selection.

Fractional ownership is when multiple investors come together to invest capital in an asset (which could be real estate, airplane, art etc.). It provides investors a percentage ownership in an asset, which gives proportionate rights in the income and capital value appreciation of the asset. It is a simple way to own an expensive asset, by splitting the ownership.

Fractional ownership of real estate splits the ownership of high value property into smaller fractions to provide alternative investment avenues to retail investors along with proportionate ownership rights in the asset.

It’s a traditional concept and the simplest example of this is owning shares in a company, through which you have a fractional ownership in the company.

NCDs stands for Non-Convertible Debentures. It is a fixed-income or debt investment issued by companies to raise funds from retail investors, financial institutions and high-net-worth individuals at a fixed interest rate for a pre-agreed period (or Tenor). NCDs are non-convertible meaning that they cannot be converted into equity shares of the company and hence offer a fixed return which is paid on a monthly, quarterly, semi-annual or annual basis over the Tenor.

Secured NCDs are secured by assets owned by the company, which can be sold to recover the investment. All the NCDs listed on The Restack platform are secured by real estate assets in the form of land, plots or apartments.

You can read more about NCDs and how they work in our blog. Available in the Restack Insights on resources section of the website.

Yes, all the investments are fully secured by underlying real estate.

1. Fractional Ownership: Such investments offer a fractional ownership in the underlying real estate. The real estate can be office, retail, warehousing, data center or residential assets. Such assets could either be operational (stabilized through a long-term lease) or under construction. Comprehensive details are available under the respective opportunity sections.

2. Debt investments: In case of NCDs investments, these are backed by mortgage of the underlying real estate asset.

None of the investment opportunities showcased on the platform are unsecured.

Yes. All investment opportunities showcased on the platform, either fractional ownership or Debt investments have real estate as the underlying asset, through ownership or mortgage in each structure respectively.

We believe that real estate is one of the most tangible asset class offering adequate security.

REITs, or real estate investment trusts is a trust that owns various income producing real estate. The REIT Manager has discretion to manage these assets on behalf of the REIT unitholders or investors. As per regulations, it is required to invest majority of the capital in completed assets and distribute at least 90% of the distributable income from these assets.

The key differences between REIT and fractional investing are,

1. Fractional investing involves investing in a particular asset in a particular micro-market with a particular risk profile. On the other hand, REITs are diversified across a pool of assets across geographies.

A simple way to understand this difference is investing in a particular stock versus investing in a sector specific mutual fund. Investors have their own views on each type basis individual specific risk appetite and invest across both basis their risk profiles.

2. In fractional investing, you can choose your investments across assets or geography. In REITs, the REIT manager has discretion to manage the investments through buying or selling assets.

This makes fractional investing more customizable in terms of portfolio creation and diversification across asset classes. At present REITs in India are more asset class specific.

3. REITs, listed on stock exchanges, are more volatile in terms of the price movements. On the other hand, fractional investing is less volatile when compared to REITs.

REITs have a lower investment amount and hence are more liquid as they trade on the stock exchanges.

4. Fractional investments are more illiquid, but our platform aggregates demand to facilitate secondary transfers of fractional investments.

5. At present, REITs are more asset class specific and only office REITs are available. On the other hand, fractional investing allows investors to customize their real estate portfolio from a more diverse pool of investments across asset class like office, warehousing and other emerging asset classes.

The company (Realtystack Private Limited) is registered as a broker/agent under the Real Estate Regulatory Authority (RERA) for showcasing these opportunities on a technology platform. Our RERA registrations are:

Karnataka: PRM/KA/RERA/1251/310/AG/211203/002658; and

Maharashtra: A51800033612.

The technology platform is only a medium to showcase curated investment options only to the platform’s registered users. The company will never give any investment advice or recommendation in respect of the opportunities listed on the website or for subscription to the securities and under no circumstances should the information on this website be used or considered or deemed as an offer to sell or the invitation or solicitation of an offer to buy any product or service offered by us. The investor is required to make their own independent assessment (or through their counsels) on the attractiveness of the opportunity, vetting of the diligence reports provided and conducting their independent diligence as they deem fit.