RealVantage breaks down walls in real estate investing for the masses

Real estate fund targets investments in middle market real estate assets

- Alyssa Woo

A new global real estate fund started by Singapore property investment platform RealVantage has got off to a flying start.

The fund, which opened for investors on April 15, secured 75 per cent of its target of US$50million (S$67.4 million) by May 31, far earlier than expected.

The fund will partner sponsors and developers across Asia-Pacific, Australia, Britain and the United States to invest in middle market real estate assets, ranging from industrial, logistics, living and hospitality.

It has a forecasted internal rate of return of between 13 and 15 per cent, and a projected cash yield of 4 to 5 per cent a year.

RealVantage is an online real estate co-investment platform that allows investors to choose which deals they want to fund. They can deposit funds electronically and keep updated on their investments online without having to meet a fund manager throughout the entire process.

Co-founder and chief executive Keith Ong said he had expected to hit the first close of the fund in about three to four months, as most institutions such as sovereign funds and pensions are "not really investing" at the moment. It is also his firm's first fund.

Most of the capital raised is from private wealth, said Mr Ong, 50.

"The world climate is very cautious in investing. The second thing is for newer funds, there usually isn't any major track record. So that's the challenge. For us, our track record comes from our individual deals," he noted.

RealVantage, which was founded in 2019, has funded 68 deals, with 24 being carried through to completion, with investors paid out. Its assets under management stand at $400 million. The company, whose Singapore office is at Aperia Mall in Kallang, is planning to open outlets in Malaysia and Hong Kong in the near future, and will increase its staffing of 25 to 35.