MicroProperties is a place where you can share real estate investments with others to access different kinds of property in a way not seen before. Because we are cutting down the usually expensive purchase into $5,000 lots, you may instantly build your own diversified portfolio of professionally managed properties dotted around the world without the limitations of budget & finances. So have yourself a piece of this freedom and fun in property ownership.
MicroProperties charges up to 1% p.a. of the Net Asset Value for administering the platform and servicing of assets. This charge is inclusive of all professional services:
Northwaters Capital Pte Ltd (NCPL) is the Investment Manager of the MicroProperties Trust. NCPL holds a Capital Market Services license supervised by the Monetary Authority of Singapore (License number: CMS100813) for funds management activities.
You may purchase up to a maximum limit of 30% on a single property, but not limiting the number of properties you can purchase on our platform. For accredited investors, the minimum investment is $100,000 with lot size starting from $5,000.
Only Accredited Investors by definition of the Securities & Futures Act (SFA) and/or those who have the intent to transact not less than $S 200,000 (or its equivalent in foreign currencies) in consideration are eligible. If in doubt, kindly reach out to us at: email@example.com.
Investments in properties are executed through unit holdings into the relevant trust. Because of the financial structures involved and that we are excited to share the story about our investment initiatives, we’d be privileged to meet with you to discuss these prospects. Please drop us a line via contact us or reserve a session on our page and our team will be in touch with you.
Our property team is constantly on the lookout for unique projects in the global properties market. The specially curated assets on this platform adheres to our prime investment belief in the transformation of real estate to maximise their value potential. These transformations may come in the form of changes in macro geopolitical, technological & regulatory landscape down to asset refreshment projects and better land utilization.
Eligible persons may participate in these property transactions by consulting with our team to discover the unique features in each of our targeted & existing projects. Primary property transactions are initiated by deposit of funds with the Trust to subscribe for units in standalone trust vehicles relevant to each property. Following the acquisition of the asset, target property will be held under the ownership of the Trust for the benefit of its participating investors and users who have done the same as yourselves shall become a beneficiary to these assets represented by your unit holdings.
Yes, your personally customised portfolio awaits you. After our team has verified your eligibility to participate, you may discuss various allocation options into any targeted/existing projects on the platform.
REITs in general consist of pre-selected assets from a single seller with a strong prevalence towards commercial assets such as offices, malls and warehouses. At MicroProperties, we believe in giving you the choice to pick the properties you like, and build your own portfolio on various investment themes to commence your property investment journey.
There are 3 different ways you may exit an investment.
Your investments in the shared ownership of properties are subjected to the fluctuations in price movement of the real estate market and the receipt of rental payments are driven by greater economic conditions. Your interests held in the trust units are also prone to liquidity risk when finding a buyer in the secondary market before the trust is due for maturity. Investments in overseas assets also carry currency risks.
All properties are held in trust for the investors as beneficiaries, safeguarded by the trust deed. Neither your funds, the properties nor your holdings of trust units will ever form or become part of MicroProperties, the platform’s business. In the event that MicroProperties ceases to exist, your legal ownership over these assets will not be affected.
No tax advice will be given by MicroProperties and as your tax status may be different to others, we strongly encourage that you seek your own professional advice.
MicroProperties and associates work with local representatives of the real estate industries together with holiday management operators & online travel agencies (OTA) to achieve a competitive return on these assets.
Yes. Target projects by MicroProperties are either tenanted or remodelled for guest house operations. Bookings revenue from guest houses vary seasonally and depends largely on the average nightly rates & occupancies achieved. The MicroProperties team and local associates ensures the guest house operations comply with all relevant regulations in the local jurisdiction.
Properties may become vacant in transition between rental contracts and for guest houses due to bookings. Properties also may become vacant over an extended period of time when it is going through refreshment, repairs & upkeep.
In these scenarios, the cash reserve will be used to offset any cost incurred in the interim. Quarterly payments will restart when the cash reserve is replenished to a certain threshold level from resumed operation.
Yes, we are in full compliance with the local tax regime. Stamp duties & relevant taxes are treated as Cost Amortization.
Your investment is close to an outright investment in a property therefore your returns are always composed of the capital appreciation and rental income after expenses on the properties in your portfolio. MicroProperties believes in giving you unparalleled access to property/tourism market opportunities rather than focusing on “promised” returns.
The cash reserve is a buffer we have built-in for contingency in case the property has become untenanted to cover for expenses (such as property tax, repairs, etc.) or in the case a substantial asset refreshments or repairs are required to maintain the marketability & value of the property.
Rental received from the tenancy/bookings will increase the cash reserve while expenses & quarterly trust payments to investors will deplete it. The MicroProperties team will manage the properties with a fiscal aim to maintain this cash reserve depending on property size.
The cash reserve in whole will be returned to the investors when the trust is terminated at the end of the investment period.
Property values are assessed each by analysis of property markets data available with multiple factors for consideration which includes pricing of surrounding properties, marketable yield, rental receipts, etc.
All trust vehicles are set up with a fixed Maturity during which time the property remains in the trust ownership. The Trust will terminate at Maturity followed by a liquidation process to realise the assets; this includes the selling of the property or a re-listing to enable the final redemption proceeds to be paid to all registered unitholders determined at termination.
Following your purchase, you will be issued units in a trust specifically created to hold that particular property. Your unit holding therefore represents your direct interest in the property according to your investment proportion.
Your investment is not redeemable but may be compulsorily redeemed periodically to enable your receipt of Trust Payments generated by the property.
At Maturity, the whole balance of your unit holdings shall be compulsorily redeemed followed by a return of capital from liquidation proceeds.
Yes, your unit holding may be transferred and re-registered under the name of another user of the MicroProperties platform.
The trust assets are generally of 3 components:
The property price reflects the value of the real property asset which forms the majority of the trust’s NAV.
The trust NAV is the summation of the Property Value, the Cost Amortisation and the Cash Reserve.
Trust NAV = Property Value + Cost Amortisation + Cash Balance
The total amount of cost incurred by the property purchase & setup (incl. stamp duties, taxes, insurances and setup cost) forms part of the trust NAV as Cost Amortisation to be straight line depreciated over the Maturity of the Trust.
Cost Amortisation at each monthly NAV calculation reflects the remaining time portion of this cost balance.
As the trust units are transferable and ownership of units (shared ownership of property) may change many times over the Maturity, this Cost Amortisation promotes a fair environment where fixed costs are shared according to your own investment proportion and the time your investments are held.
Rental generated by the property will be credited to the trust cash reserve to be set off against any property related expenses (ie. property taxes, strata fee, maintenance, insurance) and platform fee. The excess amount in the cash reserve shall be paid to your designated bank account on a quarterly basis via compulsory redemption of units.
If you need more clarifications or have any other questions, simply complete the section on the right or drop us an email at firstname.lastname@example.org, we will get back to you as soon as possible.