Update August 2023: In Q3 2023 the Shojin Secondary Market was moved offline. Shojin offered secondary positions to a bespoke network of existing investors and third parties. Please get in touch if you would like to list a position on the secondary market.
Shojin has launched its unique secondary market offering liquidity to investors who may wish to sell their stakes and giving new investors the chance to invest in projects from £75.
Once the investment opportunity in a Shojin product has closed, the investor will then have the ability to list their investment on the secondary market, setting the number of units they are looking to sell and the price per unit. What makes Shojin’s secondary market so unique is that it will function in an Ebay-esque way, where a buyer and seller negotiate directly through offers and counter-offers to come to an agreeable price. Shojin’s current investment threshold is £5,000, but the introduction of a secondary market will lower the minimum investment ticket size to £75, enabling more people around the world to create wealth by investing a fractional amount in real estate projects.
Sellers will have the ability to exit projects early releasing capital for upcoming, or unexpected, expenses rather than staying in projects for the entire duration. Buyers will be able to participate in projects they may have missed on Shojin’s primary market and invest at different stages of project risk. Both parties can be opportunistic and look to strike a mutually beneficial deal, based on their risk and return appetites, along with real estate market sentiment. The negotiation capability of Shojin’s secondary market facilitates for all these benefits which will ultimately increase investor confidence.
Jatin Ondhia, CEO, Shojin Property Partners, said: “As a business, we’re always looking for new ways to lower the barriers to entry to property investment. The introduction of a secondary market not only brings a larger number of prospective investors into the fold, but it means they can access the market with a lower initial investment, while simultaneously increasing liquidity for existing investors. Adding new investment opportunities to our platform is extremely exciting for us. As a business, we’re at an important inflection point within the real estate investment space. Having made our first investment outside of the UK and with substantial resources in place, we’re ready to continue with our global expansion plans.”
The launch of the secondary market follows Shojin’s Series A first tranche raise of £3m via a global pool of investors at a company valuation of £49m. Earlier in the year, Shojin secured a £5m underwriting facility provided by a London-based family office with a provision to increase it to £10m as the pipeline grows. Having focused exclusively on the UK property market until recently, closing its first non-UK real estate investment in Malaysia, the launch of the secondary market will help create liquidity to draw in new investors as Shojin sets its sights on new investment opportunities across the globe.
Watch the Masterclass about Shojin's secondary market here >
Watch the Masterclass about Shojin's secondary market here >
