Commercial

Commercial disrupter proves popular

New commercial property disrupter, Jasper, has hit the ground running with their first investment offering achieving full subscription in just 36 hours.

Thursday, November 28th 2019

The Auckland-based proptech start-up, which launched in June this year, aims to increase access to high quality commercial real estate opportunities by allowing investors to purchase fractional ownership in assets.

To do this, it uses a fully digitised onboarding, accreditation and subscription process and offers lower minimums, lower fees, improved liquidity and a streamlined experience compared to analogue incumbents.

It’s first public offering – an industrial property in South Auckland – is forecasted to provide an average of 7% per annum cash return over the target five-year hold period.

This proved attractive to many with over 35 wholesale investors buying up $1.85 NZD in equity to  achieve complete subscription of the offering.

Investments ranged from the current minimum of $25,000 up to several investments north of $100,000.

Jasper co-founder Mark Hurley says this marks a major shift in the way investors access high-quality commercial real estate, which has traditionally been a difficult to access asset class.

“With the complete subscription of our first offering taking place in less than two days, we’ve demonstrated that investors of all types have a keen appetite for new and better ways to invest.”

The business is initially targeting qualifying wholesale investors but intends to apply for a licence from the Financial Markets Authority which will allow it to open offers to all investors in the future.

As more offers become available through the platform, investors will be able to build their portfolio and buy shares in a selection of properties chosen by Jasper’s experienced leadership team.

Dividends will be transferred directly to the investor’s bank account and transparent reporting of performance and fees will be provided.

Jasper’s secondary market is still in the development phase, but is expected to be available in the latter half of 2020, subject to approval by the Financial Markets Authority.

This market will allow investors to sell their property shares to other investors, improving the liquidity of direct property ownership.

Following the success of its first offering, Jasper’s second property is expected to be available on the platform in early 2020 with minimum investments expected to start at $5,000. 

Hurley says this is just the first step in the journey as they use technology to democratise access to high-quality investment opportunities, so their investors can grow their wealth over time.

Read more:

NZ proptech start-up scores major investor 

Transforming commercial investment 

Comments

On Thursday, November 28th 2019 11:53 am J.B said:

I have been watching Jasper, what i cannot understand is what actually makes them different? If anything they are offering less than their incumbents, no secondary market, access only for wholesale investors, access to smaller commercial assets than others out there doing it. The line "we’ve demonstrated that investors of all types have a keen appetite for new and better ways to invest.” makes me laugh, they're not all types of investors, they're wholesale investors investing in a commercial building the same way every other investor invests with a property fund manager! These guys are a three man band, i mean seriously, can you really call them disrupters??

On Thursday, November 28th 2019 1:01 pm WellyLL said:

Property syndication - a child of the 80's - known for lack of liquidity, control, and onerous management contracts. The three guys running Jasper will likely run the normal course - develop the portfolio and then flick it and make tens of millions on exiting their management contracts while the investor takes all the risk and receives a clipped return.

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