Fraxtor Sells Out Tokenised Stake in Singapore Industrial Project

Real estate investment platform Fraxtor Group announced Thursday that it has sold out a tokenised stake in an industrial project acquired through a government land sale late last year, marking the first time that rights to a plot won through a Singapore state tender had been made available directly to individual investors.

The now completed tokenisation provides investors including wealthy individuals and family offices with rights to a project developing a food processing facility in the Kolam Ayer industrial estate which Fraxtor had teamed up with CapitaLand Development to acquire in November for S$368.9 million ($284.5 million).

The leadership of Fraxtor, which has tokenised 25 projects with a gross development value of S$2 billion over the past five years, hailed the milestone as providing investors with access to one of Southeast Asia’s most valuable industrial markets in a partnership with the region’s largest developer.

“Singapore remains a preferred investment destination in the Asia Pacific region and the industrial segment has proven to be resilient,” Fraxtor co-founder Rachel Teo said in a statement. “We are delighted to co-invest alongside an experienced developer into this landmark project that is in line with Singapore’s 30 by 30 food sustainability goal,” she added, referring to the city-state’s target of producing 30 percent of its food locally by 2030.

Jumbo Facility on the Way

Along with CapitaLand, Fraxtor aims to develop the 44,107 square metre (474,764 square foot) site on Kallang Way into a nine-storey food facility with 40-footer container ramp-up access and unit configurations with flexibility for expansion, according to a  CapitaLand statement last year.

The joint venture has land use rights to the Macpherson area site for a 32-year term with the project planned to serve food-related end-users — including processors, caterers and central kitchen operators — and will contain more than 1,000 square metres of retail space, per CapitaLand.

With the project set to rank among Singapore’s largest food processing centres, Fraxtor pointed to the scarcity of strata title food facilities near Singapore’s urban core as boosting the value of the project, which it said can potentially achieve double-digit net returns for investors on an annual basis.

“Centrally located and well-sized strata food factories are limited in supply,” Fraxtor Singapore CEO Samuel Lee said. “Investors’ demand for this project has surpassed our expectations with the entire offer taken up in less than a day across a diverse range of new and repeat investors.”

Company representatives told Mingtiandi that investors in the tokenised portion of the project included family offices and individuals investing from S$25,000 to S$5 million each. The fractionalised portion of the project represents a minority stake, with CapitaLand Development saying that it was participating in the project alongside like-minded investors, including Fraxtor.

Niche Access

Commenting on the sold-out fractionalisation, Fraxtor co-founder Oliver Siah pointed to the result as validation of the company’s status in Singapore’s alternative investment universe.

“Rachel and I had a vision to empower and connect communities through technology,” Siah said. “The success of this transaction further strengthens our leadership position in providing the Fraxtor community access to niche and exclusive real estate projects.

Prior to taking on its Macpherson project, Fraxtor had invested in 7 Mandai Estate, a industrial building in northern Singapore which was repurposed as a food processing facility in 2022.

The company has also invested in condo developments in Singapore and Australia, as well as backing a Q Investment Partners rental residential project in Japan and an automotive showroom in Bangkok.