Publicly-listed Real Estate Stock Exchange

Estates PLC enables the average saver and small investor to participate in solid real estate investments by allowing them to invest as much or as little as they like.

Estates PLC gives every individual the opportunity to become a part of a syndicate of buyers that invest together in the Fractional Ownership of a property. (Fractional Ownership: each investor owns a percentage of the property in proportion to the number of shares purchased in the company which owns the property outright.)

Whether the amount is tens, or hundreds, or thousands of dollars, Fractional Ownership completely revolutionizes the very concept of investing in Real Estate. Furthermore, the fact that every portion of this small investment can be sold on the secondary trading market ensures liquidity at any time, in what has historically been a notoriously illiquid market.

There is another revolutionary aspect of the Estate PLC’s Fractional Ownership model: a massive injection of fresh new capital into the world’s real estate markets. Sure, the individual amounts invested may be just a few hundred or a few thousand dollars. But the simplicity and convenience of the Estates PLC platform opens up the market to millions of people currently excluded from investing in real estate. And ,worldwide that is not just millions of people, but tens of millions or even hundreds of millions.


Real Estate The Ultimate Investment

The investment world is presently threatened by a Perfect Storm of highly speculative stocks on over-valued stock markets; by volatile pricing in commodities, currencies and metals; and by extremely fragile political and economic instability. (Just think of the current risks from Brexit, Greece, Spain, Italy, Portugal, Venezuela, Argentina, Russia, China and the EU, to name a few.)

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Among all the bubbles, the only investment instrument that for centuries has been proven to be always real, always up - even after the occasional temporary slowdown - is Real Estate. Real Estate was, is, and always will be the most solid, safe and stable form of investment.
 
The Barrier to Entering the Real Estate Market

Unfortunately, not everybody in this world is able to invest in Real Estate.
 
       •    Most savers have some money put aside for a rainy day, but not enough to buy into Real Estate. The cash barrier to entry - by buying a whole property  - is simply too high for average savers and for many of the working class.

      •    Even those who have enough money to buy an extra property for investment will hesitate to put all their eggs in one basket. It takes time to cash out real estate, and it’s not possible to cash out only part of the investment: when you sell property, you sell all or nothing.

That why we’ve created Estates PLC, The Publicly-Listed Real Estate Stock Exchange.



How does it work?

1.     The real estate owner forms a company that becomes the owner of the real estate (single property). If an owner wishes to sell off multiple properties, he/she simply creates an additional company for each additional property.

2.     This Company is listed in the Astana International Small Business Stock Exchange (AISBX) as a public company, then offers  shares to individual investors from around the world, at a minimum starting value of US $10 per share. 

As part of the registration/listing process, Estates PLC conducts thorough KYC on the property owner, verifying his/her identity and ownership of the property. This protects the prospective buyer, and ensures that Estates PLC is dealing with legitimate parties.

3.     In effect, the buyers are acquiring the shares from the current shareholder (the property owner), and are free to resell them at any price anytime later. These share are traded on the AISBX, exactly the same as for any other listed company.

4.     The buyers/investors benefit from the appreciation in the property’s value, as well as from the income stream from the property’s rental. So the investment can provide ongoing increasing value as real estate prices goes up, as well as a monthly dividend from the rental fees.

5. The underlying property cannot be sold by the company without the approval of 100% of all the shareholders. This protects the interests of minority shareholders.
If the major shareholder (normally, the original owner) wishes to sell the property, he/she has to get the approval of all the other shareholders, or buy them out at their asking price. Either way, small shareholders have their investment protected.

6.     All the ownership, share registrations, transactions and trading (all secured by  blockchain) are regulated under the Astana International Finance Centre, as a standard stock market, with full auditing and compliance.

Our Fees

Estate PLC’s fees are modest compared to conventional models for buying and selling real estate, because of the efficiencies of our automated platform. We are able to pass on to our customers significant savings by using new systems instead of legacy systems' smart technology instead of human interfaces' and online transactions instead of manual processing.

In line with our corporate ethos of simplicity, transparency and efficiency, our fee structure is also simple, clear, and inexpensive compared to market norms.

For listing of a company on the AISBX, Estates PLC charges an annual due-diligence and regulatory fee of USD 1,000.

For sale of shares in the listed company, Estates PLC charges the seller a commission of 1.5% of the value of shares sold, and the buyer a commission of 1.5% of shares bought.

Similarly, for secondary trading of shares (when the original buyer re-sells shares to a new buyer), Estates PLC charges both buyer and seller a commission fee of 1.5% of the total value of shares traded.

Our Processes

Blockchain-Secured, KYC-verified

The Estates PLC  online trading platform utilises blockchain to ensure security and accuracy for all share transactions on the platform.  And, well before the transaction stage is reached, the ownership of the property has been verified and approved by a rigorous on-line KYC system  (see more on KYC.org ), so that the buyers of shares know they are entering into a legitimate deal with a legitimate counter-party.


Thus,  buyers’ funds are transferred safely, securely, transparently to the company (the seller) via the Estates PLC platform.  Authenticated share certificates are transferred to the investor (the buyer) cleanly, securely, transparently and recorded on the blockchain-enabled platform. All other relevant documentation is stored digitally, systematically and securely.


The interests of both buyers and sellers are protected at every stage of the process by Estate PLC’s streamlined systems and advanced technology, reinforced by rigorous KYC upfront and robust blockchain throughout.


Online Processes – Reduced Costs


In developing its online platform, Estates PLC set itself the objective of replacing outdated legacy systems and error-prone human interfaces with advanced technology and smarter systems. The benefits of this single-minded focus on digitalising and streamlining the process are three-fold: higher security; greater user-friendliness; and lower transaction costs.


By cutting out the middlemen and automating inefficient manual processes, Estates PLC is able to pass the benefits on to its customers, and deliver to the market a superior real estate product at significantly lower fees.


Direct Peer-to-Peer Transactions

Estate PLC’s trading platform enables direct, peer-to-peer transactions between investors (buyers) and the Company (the seller). For secondary trading (original buyers re-selling to new buyers) the transactions are also peer-to-peer and blockchain-secured. Funds are not held at any point by Estates PLC. Estates PLC is simply the provider of a safe, secure, transparent platform that facilitates the trading of shares in legitimate property-owning companies  between verified buyers and sellers.

There are no ambiguities or “grey areas” in our transaction process. Funds are transferred, securely, transparently, traceably from the buyer to the sellers. Dividends are distributed via the Estates PLC platform to the shareholders pro rata to the number of shares they hold.

Estates PLC provides the trading platform  which enables the deal and ensures that the share transactions are safe, secure, transparent and between legitimate parties. It is not part of the deal itself.