Monday, 12 May 2025

What Is a Fractional Ownership Commercial Real Estate Company?

 A fractional ownership commercial real estate company is a platform or firm that enables multiple investors to co-own income-generating commercial properties by purchasing fractional shares. These companies handle asset acquisition, legal structuring, property management, and investor relations—making real estate investing more accessible, transparent, and passive.

 What the Company Typically Does: Sources high-quality commercial properties like commercial offices, hotels, warehouses, industrial spaces, and retail spaces.

Creates legal structures like SPVs or REIT-like models for shared ownership

Onboards investors to purchase fractional units or shares

Manages the property professionally leasing, maintenance, compliance

Distributes rental income and capital gains proportionally

Provides resale or exit options secondary market or fixed holding period

Target Audience

Retail investors seeking passive income

HNIs and NRIs looking to diversify

Wealth managers and financial advisors

Corporates or family offices investing in real estate

Example Companies in India

Strata

hBits

HavenDaxa

MYRE Capital

PropShare

RealX

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