How Jolliestate Works
A Venture Capital Approach to Real Estate
“At Jolliestate, we understand that the steep initial investment required in real estate can deter many aspiring investors. Our mission is to lower these barriers, making property investment accessible and achievable for the average income earner, with co-investments opportunities starting from as little as €10,000.”
Investment Formation and Structure
Similar to a venture capital fund, Jolliestate gathers capital from a select group of investors, typically between 5-10, who each acquire shares in a Special Purpose Vehicle (SPV) company. This SPV is tailored with a specific investment thesis—such as focusing on properties in city centers near upcoming metro stations—and features investor-friendly terms in its Articles of Association. These terms are designed to ensure effective and fair governance by establishing clear guidelines for decision-making processes, distribution of profits, and conflict resolution, thereby aligning and protecting the interests of all shareholders.
Strategic Deployment and Management
The capital raised is strategically invested into a limited portfolio od 2-3 carefully selected properties over a 12-16 month investment cycle. The objective is to renovate, rent out, and eventually sell each targeted property at a premium, thereby yielding a significant Return on Investment (ROI). Early investors lock in higher potential Returns on Investment (ROIs) of up to 20%, while later investors, facing reduced risks, might expect slightly lower returns around 10%.
Returns and Exit Opportunities
At the end of each fiscal year, investors may receive dividends from short-term and long-term rental revenues, facilitated through platforms like Airbnb. At the conclusion of the investment cycle, investors receive their total returns along with their initial capital. If properties are not sold by the end of the cycle, investors continue to benefit from ongoing rental income. Furthermore, investors have the option to exit prematurely each time a property is sold, thus providing liquidity and flexibility similar to venture capital exit strategies.
