Alta partners Straits Trading to offer bite-sized luxury real estate

Prospective buyers looking to snag a good class bungalow (GCB) in Singapore should be prepared to fork out at least $20 million, though some of these properties cost significantly more depending on their history, heritage, area and location.

- Angela Tan

Now, some investors have the option of including a piece of such real estate in their portfolios without the hefty cash outlay.

Alta, a digital securities exchange for alternative investments in Asia, has partnered Singapore Exchange-listed Straits Trading to offer accredited investors an opportunity to own a piece of such real estate for a minimum of $500,000.

Under a new scheme which makes investments in Singapore prime private property, accredited investors can gain access to otherwise unaffordable real estate at a fraction of the capital typically needed for a direct investment.

Alta has set up a fund to provide investors with easy access to the Fractionalised Investment Real Estate - Straits Trading (FIR-ST) scheme. The fund aims to "confer economic benefits akin to property ownership in Singapore without the hassle of upfront payments and paperwork".

The FIR-ST scheme introduces a new way to participate in Singapore prime property through fractionalised investing, which allows investors to buy a fraction of an asset on a digital exchange rather than purchasing it outright.

Under the scheme, accredited investors can partake in the upside of property ownership without the burdens of landlord responsibilities, property acquisition, additional buyer's stamp duty or cumbersome paperwork, as well as a market-adjusted dividend.

Operational costs will be managed by Straits Trading.