Dubai-based real estate investment platform Stake has raised $4 million in a seed round led by Combined Growth Real Estate, it announced in a statement today. A local family office Vivium Capital, European VC Verve Ventures, Riyadh-based Lama Holding, Saudi angel investor Mishaal Alireza and shareholders of Chalgrove Properties Limited in the UK also participated in the deal. The lead investor is a company led by Amer Hammour, founder and chairman of Madison Marquette, a US-based real estate investment management company with $6 billion in assets under management.

Launched less than six months ago, Stake wants to make real estate investments easy and accessible. The corwd investment platform allows users to invest as little as $545 (AED 2,000) in income-generating residential properties. The startup selects properties to list on its platform, allowing users to invest in them. All properties are listed with their specifications and forecasts, making it easy for users to make an informed decision.

Once the target asking price is reached, Stake acquires the property on behalf of investors and leases it out. Each investor then receives their share of the rental proceeds into their Stake Wallet on a monthly basis. They can withdraw the money or invest it in other properties on the platform.

Investors also receive semi-annual updates on the status of their investment, including the latest valuation of the property and when the property is sold (which is after the investors vote) they receive their principal amount plus the part of the increase in value. of the property. From acquisition to sale of the property, Stake handles everything on behalf of investors – including registration, managing the property manager and rent, and coordinating votes at the time of property disposal. It also plans to introduce a secondary market within its platform – through which users will be able to sell their stake in a property to others.

The fintech was founded by Rami Tabbara, former senior vice president of sales at Damac Properties who has over 15 years of experience in real estate, and Manar Mahmassani, an investment banker with over 15 years of experience. at Deutsche Bank and Falcon Group.

Talking about the issues they are trying to resolve with Stake, Rami said MENAbytes that allowing investments as low as AED 2,000 opens up the market for people who have always wanted to invest but either could not afford or did not want to lock up a large portion of their capital in a single asset, “Second, we allow people to diversify their investments into more than one property in different locations. This greatly reduces risk by reducing the risk of vacancy. If an apartment is empty for a month, the others will be rented, which maintains the flow of income Third, and most important, is transparency. Many industry players tend to hide the real data when it comes to transactional prices and focus more on hitting their sales targets in order to maximize their commission payments from brokers or developers.We are transparent in all our information and processes.We will only list properties in the what we would invest ourselves.

Commenting on the funding cycle in a statement, he added: “Our shareholders believe that in today’s world there is a much better way to invest in real estate. Through Stake, we will enable everyone to participate in this asset class in a simple, transparent and digital way. This fundraising allows us to build the go-to digital real estate investment platform for real estate in Dubai and eventually the region. We strive to provide the best real estate investment deals to our clients.

Five months after its launch, Stake has 4,000 registered users, with more than 300 investing $1.5 million (in total) in properties on the platform. Average investment size is $5,000 so far, the startup said MENAbytes, adding that its sales are up 30% month over month. Of the eight properties listed on its platform, 5 have been 100% sold.

Manar Mahmassani, co-founder of Stake, said: “When we launched Stake, we made it clear that we aimed to democratize property investment and address the ills of Dubai’s property market, which was preventing young people from participating and providing unattractive returns for experienced investors. Our shareholders believe in our vision of a world where real estate is a fully liquid and fully accessible investment asset class, available to anyone who wishes to preserve and grow their wealth. With this fundraising, we can accelerate our journey to radically improve the real estate investment market and bring this tangible asset into the new digital era.

Amer Hammour, lead investor in the round, said: “Dubai’s residential real estate investment market offers very attractive opportunities for investors for value growth and strong current income, as the current high supply is absorbed by the very strong demand. Participation allows investors to directly participate in this market and make diversified bets on properties through partial ownership agreements. Rami and Manar’s extensive and extensive experience in real estate and financial investments in Dubai, and the fantastic team they have built, will ensure that investors have access to the best underwritten and approved opportunities, as well as the management of highest quality investment of their assets.

“We believe Stake will create the online engine that will allow investors to access different types of properties in Dubai, the UAE and beyond. It is becoming the investment channel of the future. We are proud to participate in the development of Stake and to be a long-term strategic partner in the development of the company,” he added.

The startup plans to use the latest funds to evolve and improve its platform, invest in sales and marketing, and grow its team to execute its “ambitious goals in technology innovation, property sourcing, product development and operational excellence”.

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