The Association of Real Estate Investment Platforms (AREIP).
Image source: Tierra Mallorca/Unsplash.
Twelve real estate investment marketplaces, including Shojin and British Pearl in the UK, have come together to form a new international trade association.
The so-called Association of Real Estate Investment Platforms, or AREIP, is launched with seven founding members and five additional members joining today.
All member companies strive to open up property investment to different markets through fractional ownership, which reduces the cost of investing to just £5,000.
“Real estate, the world’s largest asset class previously reserved for institutions and high net worth individuals, is being made more accessible by hundreds of investment platforms around the world,” AREIP said at its launch.
“We are on the cusp of enormous growth in this nascent market, and it is the responsibility of all participants to embrace high standards and transparency, which will in turn engender trust and lead to mass market adoption.”
The association has set itself the main objective of establishing common market standards between the platforms in order to strengthen investor confidence and liquidity.
“Standardization provides benefits to all market participants, including issuers, property developers, investment platforms and investors. Standardization also contributes to the development of the primary issuance markets and the secondary trading market.
The founding members of AREIP are BrikkApp and Occollo (Czech Republic), Max Crowdfund (Netherlands), Reinvest24 (Estonia) and Shojin Property Partners, Simple Crowdfunding and British Pearl (UK).