ARA-backed Minterest sells out first real estate investment product in 11 minutes

Published Mon, May 18, 2020 · 04:59 AM

THE first real estate investment product launched by crowdfunding platform Minterest was snapped up in 11 minutes by yield-hungry investors, majority stakeholder ARA Asset Management said on Monday.

The short-term, fixed-income product, released on Friday at 5.55pm, is backed by the secured mezzanine debt financing of a A$440 million (S$403 million), 64-level high-rise residential development project in Melbourne's central business district, which offered a gross return of 6 per cent per annum for a minimum tenor of three months.

Minterest, which holds licences to provide both corporate and personal loans, connects corporate borrowers with retail investors.

ARA said the "strong take-up" of the product "demonstrated pent-up demand by investors for an attractive, risk-adjusted return in a quality institutional-grade real estate investment in a low interest rate environment".

Minterest chief executive Charis Liau said ARA's stake helped the platform develop more products in the real estate space as alternative investment options.

The platform's chief commercial officer Janice Koh said that the "overwhelming response" to the product was "very encouraging", adding that Minterest plans to develop more institutional-quality investment opportunities for investors in the future.