[Asia Economy Reporter Ryu Tae-min] The market for 'real estate fractional investment,' a method of splitting buildings into small shares for investment much like stock trading, is expanding its reach. Following a series of office building listings, even the Signiel Residence within Lotte World Tower is set to go public.
Real estate fractional investment operates by listing buildings on a trading platform, similar to how companies are listed on a stock exchange. Investors purchase digital securities representing shares of the building and receive rental income benefits quarterly in proportion to their ownership, just like building owners. This allows ordinary individuals to invest small amounts in assets such as buildings, which were previously exclusive to high-net-worth investors, without any separate management obligations.
On the 22nd, the real estate fractional investment platform 'Funble' announced that it had selected Lotte World Tower as its first public offering product on the platform. The first item, carrying symbolic significance, is a single unit of the Signiel Residence within Lotte World Tower, a building that combines rarity, investment value, and symbolism.
The first public offering is scheduled for mid-July. Once the offering is complete, investors can freely trade DAS (Digital Asset Securities), divided into 5,000 KRW units, like stocks on the mobile app 'Funble' to gain capital gains. Additionally, rental income dividends and capital gains from future building sales will be distributed according to the amount of DAS held.
As the related market grows rapidly, the scope of public offerings has recently expanded to include commercial real estate such as hotels. The trading platform 'Casa' conducted a public offering in April for the boutique hotel 'Le Lit' near Dongdaemun History & Culture Park Station. Considering that real estate fractional investment has mainly focused on office buildings, this represents a new venture. In fact, Casa has previously listed and offered four office buildings located in Yeoksam, Seocho, and Yeouido.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
