Frequently Asked Questions

What is a Fractional Investment?

Fractional ownership in real estate is a term used to describe when a number of investors join together to invest in a real estate asset so that all of them can benefit from a share of the income that the asset generates, and any appreciation in the value of the property.

What are your Investment Principles?

Our investment principle revolves around collateral-based investing and prioritizing the security of our investors’ investments. We achieve this by investing in developers only when they can collateralize a property or land valued at least 1.5 times the principal amount. This approach ensures that, even in the worst-case scenario, our investors are fully secured and have the potential to recover 100% of their principal along with returns for two years.

How does Astita Global curate Investment Opportunities?

At Astita Global, we take extreme care in curating investment opportunities to ensure that all our opportunities are of the highest quality. Our team has a collective experience of over 60 years in Real Estate and Finance & Investing providing us with a deep understanding of the industry and its dynamics. We have established stringent policies and procedures to thoroughly scrutinize and review each investment opportunity before it is listed on our platform

How is the Investment process executed?

Astita Global pools a group of Investors and forms them into a company through the incorporation of a Special Purpose Vehicle Company (SPV). This SPV then acts as a legal entity and invests in the real estate project. In this process, the Developer registers the collateral in the name of the SPV, and the investors receive ownership in the SPV based on the amount they have invested, on a pro-rata basis.

The transaction occurs between two companies—the SPV and the borrower/developer. By adopting this structure, we aim to provide a streamlined investment environment that ensures transparency, security, and legal compliance throughout the process. 

What is the minimum investment to start with?

You can start investing on our platform with a minimum investment of 10 Lakh Rupees.

What is the investment term?

The term of every opportunity is different. Generally, our investment term ranges from a minimum of 24 months to a maximum of 36 months. You can find more details about the term on our website when the listing goes live.

How does the repayment work?

Developers make scheduled payments according to the terms agreed upon in the deal which would be mentioned in the opportunity page. The profits payout is usually every 12 – 24 months and changes from deal to deal. The principal amount is always returned in full at the end of the term.

Can I invest in more than one property and have a portfolio?

We encourage a diversified portfolio. So, yes, you can invest in more than one property across locations, asset types, and investment tenures.

How does a property get listed?

Property listing is the most important process and everybody takes it very seriously. A robust, data driven asset selection process is followed for investors to make maximum returns on investments. Due to our stringent due diligence and evaluation process, only 1% of the total properties analysed get listed on our platform. An experienced team that performs thorough technical and legal due diligence before buying any property is in play whilst engaging with reputed firms to conduct due diligence on the property title.

What happens if a property fails to be fully funded?

If for some reason a property on the platform doesn’t complete its funding target, any funds that have been committed by investors will be reimbursed to the registered/verified bank account along with interest as prescribed in the Expression of Interest.

What are the KYC documents required to begin with the investment?

Copies of the following documents will be required as part of the KYC process – PAN Card, Address Proof (Aadhar/Driver’s Licence/Passport).

Can I withdraw my money before the term ends?

Premature withdrawal of principal is possible through a resale window but it’s important to note that processing such requests before the term ends can be challenging and time-consuming. So kindly refrain from investing your emergency funds with us, as they may not be readily accessible in case of unforeseen circumstances. Furthermore, in the event of premature withdrawal, please note that the return rate will be a fixed to 10% per annum for the duration the funds were held.

What happens if the Developer defaults the payment?

All of our investments are collateralized by a real estate property that is worth around 1.5x – 2x of our investment value and the likelihood of a Developer defaulting the payment is very rare. Moreover, the collateral secured is secured via a Sale Deed & our Investors will have complete control over this collateral which can be sold at the Investors will in case of default. In the rare event of default, Astita Global will utilize its extensive marketing and real estate network to sell the collateral and liquidate the asset. The total amount recovered from the sale will be distributed to the Investors according to the terms of the Buy Back agreement signed with the Developer. 

What is the difference between REIT and Fractional Investment?


Fractional Investments

It is a highly regulated trust fund that limits the expansion of innovative growth models.

It is self-regulated, enabling expansion of the investment structures for investor requirements from balanced to income-generating assets.

The Trustee is responsible for holding the assets of the REIT in a Trusteeship for the benefit of unitholders

Investors are co-owners of the SPV against the investment amount whereas the property is managed as per an Agreement between Company and the SPV.

With a minimum asset requirement of 500 Cr, the REIT has a limited number of properties that it can undertake.

There is no minimum value that a property has to meet. Instead, the property is selected after rigorous due diligence and ascertaining the returns

Pricing is subject to stock market fluctuations as it is publicly listed

Stable monthly income like traditional real estate investment. Not subject to stock market fluctuations

At least 80% of investments made by a REIT need to be in commercial properties that can be rented out to generate income. The remaining assets of the trust (up to the 20% limit) can be held in the form of stocks, bonds, cash, or under[1]construction commercial property.

All properties are pre-leased and revenue-generating.

REIT must distribute not less than 90% of the net distributable cash flows, subject to applicable laws, to its investors

There is a complete distribution of distributable cash flows, which is calculated after deducting statutory fees and taxes along with our asset management fees

Full valuation to be carried out at least once a year and half-yearly update of the same has to be carried out.

Monthly tracking of rentals and distribution of payment Half yearly valuation report live tracking of assets through Analytics