Fraxtor partners with Q Investment Partners
Fraxtor Private Limited (Fraxtor) and Q Investment Partners (QIP) are partnering to offer investment opportunities to accredited investors on the Fraxtor Platform.
Through this partnership, Fraxtor’s accredited investors will be able to invest in quality institutional-grade real estate assets managed by the experienced asset manager from as low as GBP20,000.
“We have chosen to partner with QIP because of their strong track record in UK PBSA. The QIP team and its principals have consistently returned mid-teen returns for their clients over the last 10 years in each and every UK PBSA project. I believe that the structural undersupply and proven long term resilience of UK Purpose-Built Student Accommodation make it an extremely attractive and robust asset class. In particular, in light of the pandemic challenges, the business of UK Higher Education is expected to see through the immediate challenges faster than many other business sectors and remain strong in the medium and long term,” says Oliver Siah, CEO of Fraxtor.
PBSA is the preferred accommodation choice designed to meet the needs of the modern student. It provides safe and secure accommodation and is often situated close to campuses with excellent transport links.
The UK PBSA sector has long been favoured by institutional investors for its resilience through crises and sustained student demand In 2019, institutional investors such as Singapore Press Holdings, Allianz and Far East, entered the UK student accommodation market, investing more than GBP4 billion.
UK PBSA was one of the few asset classes that recorded strong growth in the years following the 2008 Global Financial crisis due to student’s desire to up-skill in times of economic uncertainty. As university applications increased, so did the demand for PBSA. The asset class looks set to follow a similar trajectory in the wake of the pandemic, where a record 40.5 per cent of all 18 year olds the UK have applied to university, attesting to its fundamental strength.
QIP and its principals have successfully developed more than 2,000 beds of UK PBSA, and have delivered 20 per cent IRR net returns after tax through the Global Financial Crisis.
“Fraxtor’s unique platform is a revolutionary way asset managers raise funds and manage their clients. Working with Fraxtor allows us to extend our reach to target a wider investor base, more importantly, democratise access into institutional-grade, alternative real estate opportunities. The entire investment experience from client on-boarding to the subscription is digitally enabled through the platform, further enhancing value for our clients especially in such unprecedented times,” says Peter Young, the CEO of QIP.
The Fraxtor Platform uses MyInfo by GovTech to on-board clients remotely. Using their SingPass, clients are able to conveniently submit verified personal information to Fraxtor as part of the account opening process.