Although SmartCrowd recommends a holding period of 5 years, investors can exit their investment in two ways: (1) by voting to sell the property, or (2) by listing their shares on the Share Transfer Facility.
Voting to Sell
At the end of the recommended holding term, a mandatory vote is called where investors are given the option to sell their investments at market value (each property is evaluated by an independent Real Estate Regulation Authority (RERA) approved valuator).
However, this vote can be called sooner by SmartCrowd, or any of the investors for valid reasons (i.e. there’s opportunity to make a handsome profit). The vote is based on the proportionate weighting of your investment. That means, if you own 10% of the shares in a property, your vote carries a 10% weight. We don’t allow anyone to own more than 24.99% of a property. This is designed to ensure that no one is a controlling party.
Share transfer facility
We launched our Share Transfer Facility in the second half of 2022, allowing you to sell your shares at periodic intervals within a year to other investors on the platform (given that your property qualifies for the Share Transfer Facility – typically properties older than a year). The transfer facility is operational for 2 weeks every 6 months in March and September. This allows you to plan your exits or increase your exposure in certain properties by buying shares from other investors.
Remember, real estate should not be treated as a speculative asset. It is a great investment for those who have the appetite to weather out short-term economic fluctuations