A Swiss real estate crowdfunding platform announced the co-ownership of 55 investors of a residential building in Switzerland. The building cost 6,800,000 CHF to acquire, and the total amount raised across the co-ownership was 3,250,000 CHF. The anticipated net return on equity is 6.53% annually.
Foxstone and Co-ownership
Foxstone offers crowd products including co-ownership of real estate assets and crowdlending. The co-ownership process has several key features. First, Foxstone identifies properties with stable historical returns and properties with favorable financials. Foxstone properties do not require major renovation.
The group acts as an asset manager, and receive compensation accordingly. They do not act as a property manager for properties that they facilitate investment. Additionally, Foxstone notes that they can find a buyer at any point whenever an original investor is looking to sell their shares. Foxstone provides a quick and sure path to liquidity.
Utility vs. Investment
Some crowdfunding firms recognize the challenge of separating investment from its utility or functionality. Blockchain enabled security tokens have this problem. Foxstone addresses part of a similar problem in that they do not provide property management services, but they act as an asset manager for investors.
The line between acting as an asset manager and as manager of the utility will be a key distinction in firms looking to facilitate crowd investment opportunities to groups of people who may also participate in the utilisation of the service.