Real Estate value investment periods

Hi - im enjoying learning about the centrifuge defi solution to RWA financing, however I had a few queries with respect to Real Estate and how pools may work:

  • Average RE ‘value - add’ transaction may be 24-36 months. How does this tie up with liquidity providers expectations. This may be longer for RE fund investments. Are investors willing to hold for this long.
  • What has been the average investment maturity period for successful pools?
  • what is average investment size of pool investors?
  • we are currently launching a tokenised real estate fund, focussed on UK real estate and interested if this is something that could work with Centrifuge?
    Thanks in advance for feedback
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Hey @Sharkey, the way i see it, a pool issuer should work to find a balance between the practical side of funding assets and the flexibility provided to investors.

  • If assets are 24-36 months then that may be long for investors but perhaps interest payments on the loans are remit every few months to provide liquidity.
  • From what I have seen the average investment size is about 12k from retail and 100k from entities (keep in mind this is just from on chain data, I have not calculated an average)
  • a UK based real estate pool would certainly work on Centrifuge as its just the protocol housing the pool. To do this, of course all legal documents would need to be in place for investors and the SPV managing the pool. The real question is if current investors would be interested in investing in this type of pool.

If you were to launch a pool would you have Senior and Junior investors already lined up to participate?