The workflow, from a property to be fractionalized, to distribution is as follows:
Sponsor Application: To initiate the process, a sponsor proposes a real estate asset for fractionalization on the Prop.com platform. Initially, all the real estate assets will be proposed by the Prop.com investment committee.
Due Diligence: Prop.com conducts a thorough due diligence, in which it screens several different aspects:
Initial screening, during which vital factors such as location, asset type, and the credibility of parties involved against our set investment benchmarks are verified.
An in-depth analysis is conducted for assets that pass the initial criteria. They are then subjected to an extensive examination covering financial, legal, and operational aspects through site visits.
Market research, which analyzes current market trends, the supply-demand dynamics, potential risks, and expected rewards.
Parties Involved Evaluation, which is an assessment of the track record, expertise, and financial solidity of all parties.
Independent Auditor and Valuation Reports, provide transparency through independent auditor and valuation reports for each asset.
Legal Framework with TGS Baltic: Legal documentation and a compliant regulatory setup are created through our collaboration with TGS Baltic, known for its reputation for exceptional legal services across the Baltic region. Their portfolio as a law firm includes the completion of more than 31 billion in projects.
Real Estate SPV Setup: A Real Estate Special Purpose Vehicle (SPV) is incorporated to align the asset for securitization. All the financial agreements for income rights are structured with this SPV.
Property Management: A property manager is selected by the SPV, who is responsible for supervising the asset management. The roles and responsibilities of the manager include dealing with the tenants, rent collection, and management of different aspects of the property.
Securitization and Fractionalization: Securitized Debt Notes will be represented are subsequently listed on the marketplace, accessible for acquisition by KYC verified Prop.com investors.
Income Distribution and Audit: The monthly income generated from the asset is distributed to note holders and audited by reputable third-party firms to ensure transparency and accountability. In addition, yearly financial audits are conducted on the securitization of SPV and its subsequent compartments.
Ongoing Monitoring and Reporting: We are committed to maintaining investor satisfaction through continuous monitoring steps, which include:
Dedicated local market analysis: Our team of experts keeps a close eye on the market performance:
Data sources: The provision of real-time insights by leveraging various data sources.
Independent Yearly Valuations: In addition to the independent third-party audits on the SPV and its compartments, third-party valuations are conducted annually to ensure asset accuracy. Regular, in-depth reports are shared with the stakeholders for transparency.
Proactive communication: A proactive approach is deployed by our investor relations team to address inquiries and offer valuable insights to our investors.