Club Deal Real Estate

Definition and operation of the Real Estate Club Deal

One Club Deal Real Estate is a collective investment operation in which several investors come together to co-finance a real estate project associated with a specific type of asset and/or investment theses (residential, tertiary, purchase-resale, para-hotel, etc.). Each investor enters the capital of a dedicated vehicle or participates in the company's debt via Bonds according to the amount he wishes to commit.

This mechanism makes it possible to pool contributions, risks and costs, while maintaining a transparent structure. The vehicle is then responsible for acquiring the real estate asset and ensuring the redistribution of income or capital gain.

Who are the initiators of Real Estate Club Deals?

Real estate club deals are generally initiated by real estate developers, property dealers, asset managers, real estate funds or wealth management consultants (CGPs).

These actors play a key role:

• They identify the projects,
• structure them legally and financially,
• then select the investors.

They also ensure the administrative, accounting and operational monitoring of the vehicle throughout the life of the investment.

Stages of a real estate club deal

1. Structuring: choice of the legal vehicle (SPV, SCI, SAS), setting of distribution rules and entry tickets.
2. Distribution: presentation of the opportunity to qualified investors, collection of letters of intent.
3. Onboarding and subscription: KYC verification of each investor, electronic signature of the subscription form, secured payment.
4. Closing: validation of subscriptions, release of escrowed funds, registration of securities.
5. Management and distributions: project monitoring, automatic distribution of rents or capital gains, investor reporting.

Digitalizing a real estate club deal

Manual management of a club deal — paper forms, KYC on Excel, unreconciled transfers — represents on average 3 to 4 weeks of delay between an investor's “yes” and their actual transfer. A dedicated SaaS infrastructure like Fraktion digitalizes the full cycle in 4 weeks of deployment, with no technical development.

Operating real estate club deals and want to accelerate fundraising?

Fraktion automates your entire club deal lifecycle, from setting up the SPV to distributing returns. Your investors subscribe online in less than 48 hours, your back-office is fully digitalized — operational in 4 weeks, no development required.

• Digital subscription: automated KYC, electronic signature, secured payments
• White-label platform to distribute to your investors and CGPs
• Automatic distribution of rents and capital gains pro-rata to participation

Request a Fraktion demo → or see our solution for club deal operators.

See also:
→ SPV (Special Purpose Vehicle)
→ Real Estate Fundraising
→ Our solution for club deal operators