Ellington Properties is Dubai’s leading design-led developer. Ellington emphazises a customer-centric approach to its properties. Led by some of Dubai’s most experienced builders, Ellington seeks to leave a mark in its customers eyes.
We make it easy for anyone to invest in income-generating properties through our award-winning digital platform. Our belief is that investing in prime real estate opportunities should be widely accessible to a larger group of people, not just those that can afford to invest hundreds of thousands of dollars. Through our way of investing, people give themselves an opportunity to diversify their personal investment strategies and earn a passive income through one of the most tried and tested methods ever – through real estate!
** Data availble until July 2020
*** Past performance is not an indicator of future results
The fact that you can own real estate through a digital platform was fascinating. The first of its kind in this region. I wanted to be part of this innovative model and experience it myself – so I did!
A secure regulated platform was key for me as it spreads the risk of investing across different properties
It’s simple and free! Register on the SmartCrowd platform and complete the entire process in 5 minutes.
Once you’re registered, browse live properties and invest in those that align with your goals. Top up your digital wallet via a bank transfer and complete your investment. Once the property you invest in gets 100% funded, sit back, relax and watch your wealth grow.
Great question! As the only regulated real estate investment platform in Middle East & North Africa, we are legally required by the regulator to ask for this information. Think of it as no different than opening up a bank account. You’d be worried if your bank wasn’t asking customers the right questions before opening up their account, right? It’s the same concept.
SmartCrowd is regulated by the Dubai Financial Services Authority (DFSA) and is required to comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) controls. For this reason, all investors must submit proof of identity (passport and/or national ID) and proof of residence (e.g., utility bills, bank statements, tenancy contract, etc.) along with their employment information, source of wealth, and current annual income.
In each investment opportunity, Smart Crowd limits maximum ownership to 24.99% to ensure no individual owns a majority interest.
However, the total amount that a user can invest in the platform, depends on the type of investor you are. There are two types of investors, retail investors and professional investors.
Professional Investor: If you are classified as a “professional client,” then you will have no limitation on how much you can invest using our platform. A professional client is one who has prior experience and understanding of relevant financial markets, and a decent net-worth from their previous investments.
Retail Investor: If you are classified as a “retail client,” then you will be restricted to $50,000 over a year. According to the DFSA, an individual is classified as a Retail Client if they cannot meet the Professional Client criteria or if they opt to be classified as a Retail Client. These clients are also offered more protection because they are deemed to have less net worth, experience and understanding of relevant financial markets than a Professional Client. We are required to provide Retail Clients with certain disclosures and risk warnings that we may not necessarily provide a Professional Client. Furthermore, we will handle Retail Client complaints in accordance with specific requirements as defined by the DFSA.
Smart Crowd classifies all users as Retail Client unless the user requests to be classified as a Professional Client.
According to the DFSA Rule Book, COB Section 2.3.7, an individual is a professional client if:
Smart Crowd will need to verify the above information in order to classify you as a professional client.
Smart Crowd will establish an investment vehicle, called a Special Purpose Vehicle (SPV) for the purpose of purchasing the investment property.
Each property on SmartCrowd has its own corresponding SPV. And each SPV is broken into 1,000,000 shares. For ease of calculation, if a property is worth AED 1 million, each share in that property is worth AED 1. If an investor invests AED 5,000 – he/she owns 5,000 shares in that investment or 0.5% of the property. As per the Dubai Land Department’s requirement, this vehicle will be incorporated and registered in the DIFC (Dubai International Financial Centre).
The shares are always the property of the investors and they are the ultimate beneficial owners. SmartCrowd does not own any shares. SmartCrowd facilitates the entire process to make this method of investing possible for you.
A Special Purpose Vehicle (SPV) is just a fancy way of saying “a separate new entity” – it’s no different than setting up a new business.
Currently, RERA (Real Estate Regulatory Agency) cannot accommodate more than five to ten people on a property’s title deed.
In order to accommodate multiple investors on a property title deed, SmartCrowd establishes one one SPV for every investment property so that there isn’t a limit on the number of shareholders that can collectively invest in a property.
As an investor, you do! You are the ultimate owner and beneficiary of the property proportionate to your investment amount. For example, if you invest AED 5,000 in a AED 1M property, you own 0.5% of that property. The remaining 99.5% is held by other property investors like you! Collectively, you all earn dividends through the property. Through this mechanism, not only can you invest in an affordable manner, but you can also reduce your risk because you can spread your capital across dozens of properties as opposed to one (i.e., as the adage goes: don’t put all your eggs in one basket!).
Since it is not possible to list out dozens of names on a single title deed, the name issued on the title deed (ownership document) is that of the SPV corresponding to your property. Do not be worried. Ultimately, you own direct shares in the SPV, which in turn is only responsible for holding the asset that is your investment property and paying out dividends to you. To see your name as a shareholder, simply go on to the DIFC public register and type the name of the SPV that corresponds to your property. Typically the name of the SPV starts with the initials “SC” followed by a hyphen and a number.
Hosted by SmartCrowd CEO and Co-Founder, Siddiq Farid
May 18 2021, 6:00 PM (GST)
In this webinar, you will learn