Crowdfunding platform CoAssets sets up real estate subsidiary

Singapore

COASSETS, a Singapore-founded, Australia-listed real estate crowdfunding platform, said on Tuesday that it has incorporated a wholly owned subsidiary, CoAssets Real Estate (Care).

Care - essentially a real estate agency - will provide a full spectrum of real estate services including marketing, sales, analysis and valuation.

Its setup is part of CoAssets' growth strategy and venture into secured crowdfunding, the practice of funding a project by raising funds from a large number of people.

Getty Goh, chief executive officer of CoAssets, told The Business Times: "In this case, the project is backed by collateral to reduce lending risks."

He said: "We are now looking at crowdfunding deals that are backed by assets as a way to protect our users amidst economic uncertainty. Given this move towards secured crowdfunding and our market position as a real estate crowdfunding platform, having a real estate agency fits in well with our overall business strategy."

He added that with Care, CoAssets will be able to attract more real estate crowdfunding projects and give its members more investment alternatives. Care will focus solely on serving CoAssets' 70,000 registered users.

Care will also provide companies with a means to liquidate real estate assets that have been collateralised within Singapore and the region.

CoAssets, launched in July 2013, has reportedly facilitated more than 76 deals worth more than S$45 million "with no defaults to date".