top of page
ADVANTAGES

ADVANTAGES

NAFRAM is the first platform to integrate in one single place  primary direct investment and secondary trading of real estate property and related income streams in the real estate  industry, securitized through fractional rights.

KEY ADVANTAGES

Innovation

To create a fully fledged market, NAFRAM as a platform, integrates around NAFRAM as a mainframe and two separate supporting layers.

Transparency

In comparison to the present peer to peer market and, as well, to the existing  sequential or unregulated market approaches, NAFRAM as an automated and  regulated market allows not only for financing in a regulated and liquid market but also for arbitrage products to  offset/hedge business risks incurred by operators in the real estate industry

Accessibility

Katastic opens up for the first time the access of institutional investors to IPbS, as a new class of securities, thus creating a bridge between stakeholders in the music industry and institutional investors and leading investment banks.

BENEFITS

BENEFITS

For Originators (developers, initial property owners, real estate agents)

  • Usually no down payment required/no equity requirements 

  • Except for senior debt, level of yield is not fixed and not guaranteed

  • In case of default on senior debt principal, lenders get fractional property rights (“FPR”) at market price, therefore Originators do not lose the entire property

  • More flexibility in building direct property related fractional rights

  • Diversification of property revenue and market risk through pooling 

  • Higher access to qualified investors and institutional investors, to finance and develop small size property, through pooling

For Investors

  • Direct access to property ownership. Owning FPRs instead of securities related to a company/legal entity owning a property

  • Able to invest in diversified property through FPRs related to property categories and pooling (by type of property, geographically, spread

  • Access to high value property for smaller individual investors

  • In case of default on senior debt, FPR holders do not lose everything 

  • Allows professional institutional investors (REITs, ETFs, public real estate companies) to mark their assets to the market 

For lenders (providers of senior debt)

  • In case of Originator default, lenders get FPRs at market price/value to cover defaulted amount

  • Marking to market allows for a higher degree of collection 

  • No time consuming and cost free in comparison to traditional foreclosures

  • Instead of registering NPLs in their portfolios, debt is swapped into equity type securities (FPRs) which allow: (i) better pricing; (ii) higher liquidity and (iii) less provisions to be recorded with respect to NPLs

INVESTMENT BANKING INDUSTRY, INVESTMENT FUNDS & QUALIFIED INVESTORS

Allows for more access and recruiting tools towards potential retail investors (middle and upper-middle class individuals)

Allows for more creativity in generating products related to fungible property and fungible property generated income, thus allowing for portfolio diversification and better services for their client base. 

Allows for a more diversified offer of products and generates higher appeal to real estate market Originators, with a potential to increase client base. 

Allows offsetting operations between equity of real estate market investment vehicles (REITs, ETFs, public real estate companies) and these investment vehicles traded fungible real estate assets

bottom of page