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.
Using Fraction to Pivot
With increasing demand for flexibilities by its investors, UTC adopted Fraction as an ownership platform rather than using the traditional holding company structure for HQ12, the latest addition to its portfolio.
Powered by Fraction, UTC is able to provide unprecedented levels of freedom for its investors in terms of exit preferences and investment duration. This has provided a significant increase in the attractiveness of the fund, as well as reducing the level of administrative work and costs for UTC to manage the investment.
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 investors 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 investors to pick and choose how much they want to invest on each site unless a company is set up for each project separately - which represents a significant financial and administrative cost.
With Fraction, UTC can offer its investors the ability to pick and choose which project they like more or less as well as the flexibility of exiting on their own timeframe and terms.
The idea of being locked away in private funds is now a thing of the past.