Griffin Group launches Fraxtor Australia – the future of investments

Fraxtor Australia, an exciting online investment platform equally owned by the highly successful investment firm and asset manager Griffin Group, has been launched in Australia.

Fraxtor opens important real estate and property investment opportunities to a new group of wholesale investors, previously unable to take advantage of that avenue of wealth creation because of high entry points.

Greg Devine, who founded Griffin Group in 2011, says the platform is a great newcomer to the Australian real estate investment market and backed by 40 years of experience in investment banking and real estate development.

Fraxtor Australia Corporate Advisor Stephen Smith explains the new platform is a joint venture with Fraxtor Singapore, which has been running successfully for about seven years, raising $SGD60m across 19 projects.

In Australia entry point is expected to be as little as $25,000 compared to the $1m investment previously needed and which limited this type of opportunity to big institutions and wealthy family groups. 

The platform is a great development for clients who may be more self-directed in their investments, like those with self-managed Superannuation Funds.   

They can now easily access property and real estate opportunities from private equity fund managers and small to mid-sized developers across the residential, commercial, industrial and healthcare sectors. In return developers will be boosted by access to a new pool of capital at a time Australia is experiencing widespread housing shortages.  

“Not only will it offer investments here in Australia, because Griffin has projects around Australia, but we are also looking to bring some of the opportunities in from the Fraxtor Singapore platform which includes developments in Singapore, Japan and Thailand,” Mr Smith explains.

“So, it's a way for people to get global real estate exposure as well.

“We've had a relationship with the Singapore team for a long time now and they have been providing funding into our projects; from our perspective, they are like an institutional investor, but behind them are a lot of smaller, sophisticated mum and dad type investors if you like.

“That’s where we believe the same opportunity would suit Australian investors, like those with self-managed Super Funds and family trusts and other people that are a bit more self-directed in choosing their investments.”

Chief Investment Officer, and one of Fraxtor Australia’s Directors, Michael Devine says it’s an attractive option for people who may have looked at purchasing investment property, but Fraxtor has the important advantage of providing them more definition around their returns in a climate where yields aren't really consistent enough in terms of future planning.

“It's very difficult for people to get into the property market at the moment; there's just such limited stock,” he explains.  

“Unfortunately, it’s the same across the country; we just haven't built enough properties and there's been great difficulties through COVID with the cost of materials and issues around a shortage of builders that's made it very difficult to build new houses, so we've got a severe shortage.

“If you're an investor, if you've got money and you want to get into the property market, even as an own occupier, that hurdle is huge.

“Through Fraxtor you get access to real estate, earn a very good potential return on that money over a period of time, and that means in two to three years, you get your investment back with your return and can look at your options from there.

“So, this helps you grow your wealth at the same time you're perhaps waiting for some changes in the property market.

“The biggest push from the investors we deal with, is around clients wanting some kind of definition around exactly what they are going to achieve during the course of the investment period.

“From our perspective we find good development sites, and the one we are launching first on the Fraxtor Australia platform is right on the riverbank at South Perth, a really high-end development and our investors can be part of the development team that will fund it.”  

The site is at 97 South Perth Esplanade with uninterrupted views across the Swan River to the CBD and Kings Park. It will have five, high-end apartments, possibly a sixth.

Mr Devine explains each is full-level, about 350 square meters plus in size, catering to people that want the Australian dream of a large home and don't want to live in a massive 60 or 70-unit development.

“It’s an opportunity for the executive retiree type purchaser; the downsizer who has the funding from selling their existing assets, to be able to purchase this type of high-end stock,” he says.  

Fraxtor Australia is underpinned by advanced blockchain technology providing Australian wholesale investors access to an easy to use, state-of-the-art investment platform.  Each offer is issued by Apex Financial Solutions Pty Ltd which holds an Australian Financial Services License.