Fraction enables an innovative private pooled capital project for UTC Holding
An investment in an uber-chic, modern renovation project in the heart of Bangkok's prime residential area is using Fraction as an ownership platform to address its investors' differing needs and position UTC for future growth.
UTC Holding is an investment company geared towards the real estate sector. UTC identifies, structures and leads the investment in various property projects on behalf of a set of privately pooled investors where its recent focus has been a series of renovated single homes in the upper class Ekkamai and Thonglor areas of Bangkok.
Geared for Future Growth
UTC sees the "HQ" project as a series investment where built up knowledge and experiences can offer significant synergies for the follow on renovation sites
However, each of UTC's investees often have differing ideas and differing levels of interest for each future site. A traditional holding company structure previously used doesn't offer the ability for each of UTC's investee to pick and choose how much they want to invest on each site unless a company is set up for each project separately - which represent a significant financial and administrative cost.
With Fraction, UTC can offer its investee the ability to pick and choose which project they like more or less as well as the flexibilities of exiting on their own timeframe and terms.
The idea of being locked away in private funds is now a thing of the past.
Charn Issara Development Public Company Limited and Fraction to digitize and fractionalize first property
On March 6th, Charn Issara Development Public Company Limited – a leading property developer listed on the Stock Exchange of Thailand – will trial the process of “IPOing” its first property on the Fraction Platform as part of our pilot project and closed loop beta testing.
Based on the proprietary legal structure designed by Fraction and our legal team at International Legal Counsellors Thailand (ILCT), Charn Issara will follow a process of first getting through our KYC/AML protocol, a designed due diligence check on the property to be listed, a “pre-IPO bookbuild” process, and then through to transferring its title deed of a condominium unit onto our Trust Structure where the title deed will be digitized and fractionalized.
The fractionalized ownership of this condo unit will then be listed on the beta version of the Fraction Platform and to be traded as part of our closed loop beta testing live on our Exchange.
Fraction lists first property on the Fraction Exchange
Fraction has completed the successful Initial Fraction Offering (IFO) and listing on the Fraction Exchange of a condo unit in Onnut, Bangkok.
The complete journey of digitisation of the title deed and fractionalisation of its ownership was followed by the initial offering of the fractions, all provided and completed on the Fraction platform. Following the IFO, the fractions of UDON-0001, the name given to the asset, were admitted and quoted on the Fraction Exchange where they can now be traded amongst investors in our closed loop beta testing period.
UDON-0001 will be the first of many properties to be digitised and fractionalised by Fraction this year