Twino launches real estate securities
European peer-to-peer lending platform Twino has launched real estate securities, allowing investors to diversify their portfolios by funding short-term rental properties.
The new product – which it calls RE Securities – invests in the acquisition of a property that is or will be rented out, to generate rental income and capitalise on the appreciation of the property’s value in the long term.
“While real estate has proven to be one of the best long-term investments, most people who want to invest in real estate aren’t able to do it due to high initial investment and various operational requirements of acquiring and managing a property,” Twino said.
“With Twino now anyone can invest in income-producing real estate starting at just €100 (£86). We will take care of all the real estate acquisition and management operations so you can experience a truly passive investment experience, collect net rental income, and benefit from property appreciation over time.”
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Technically, the product works by allowing investors to purchase preference shares of Twino subsidiary Twino Properties. Twino Properties owns the property assets and handles all aspects of property management.
Unlike Twino’s existing debt offering, this is an equity investment. Dividends will be paid out annually and any appreciation in value will be realised once the property is sold, which Twino anticipates to be within five to 10 years from purchase.
Twino said the first RE Securities are already available on the platform, with a minimum investment of €100.
The product offers a target annual return of six to eight per cent, but this could go up to 10 per cent “in a positive market environment”, Twino said.
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The platform is also offering a five per cent cashback bonus to celebrate the launch of the product.
Twino added that it is currently working on a secondary market for RE Securities.
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