- Will I be charged for withdrawing funds from my Aqar Invest Account?No, we will not charge you for withdrawing funds.
- Why do we undertake customer identity verification?After a customer sets up an Aqar Invest account, we complete an identity verification check. This is an essential part of our due diligence process, and is something that’s required by our regulator, for all customers. In the event that we are unable to complete the identity verification check electronically, we will ask that you provide two identity documents.
- How do I track the performance of investments made through investment plans?You can track the performance of all your investments in the Dashboard section of My Portfolio. This is the same as if you made the investment yourself. From here you can see the month on month changes in performance and compare each investment’s return.
- What are the different types of investment opportunities?On Aqar Invest you have a choice between New Listing and Resale investment opportunities.
• New Listing opportunities
New listing opportunities are properties which we are looking to acquire in the near future, with exchange of contracts expected in the coming weeks.
In the unlikely event that a new listing does not reach its funding target within the specified time, or the purchase falls through for some reason (e.g. the vendor withdraws it from the market or the property does not meet our stringent due diligence criteria), Aqar Invest will obviously not charge or receive any fees and any costs that have been incurred (for example, surveyors and solicitors) will be borne solely by Aqar Invest.
• Resale opportunities
Resale opportunities appear on the platform when another Aqar Invest investor chooses to sell their investment.
The selling investor can choose the price in which they offer their shares for sale, but we will provide information to help both potential buyers and sellers to perform diligence, and determine whether they wish to buy or sell at a given price.
In addition, we provide an updated estimate of the valuation of each property annually. Accredited surveyors carry out revaluations of all our properties on a regular basis. A comprehensive approved surveyor’s physical inspection and valuation is completed every five years in connection with the 5 year exit mechanic.
However, ultimately it is your decision what price to buy or sell at. Our estimated valuations do not constitute, and should not be considered, investment advice.
- What does Aqar Invest do?Aqar Invest is a share exchange for equity base property in KSA, allowing investors to take a view on individual property assets, diversify and manage their portfolio at the click of a button.
Property is a popular investment, but it is not always easy to access. Our purpose is to bring accessibility, simplicity and liquidity to this asset class.
Aqar Invest allows you to invest in Residential and Commercial property. You can earn monthly income from rent and sell your investment on the Resale market.
- what are the standard investment documents?At the point of investment, you will be required to agree to a set of investment documents. These are standard form for each investment and sample documents can be accessed from your Dashboard on the platform.
- What are the property purchase costs?As with buying the property directly, purchase costs such as property purchase commission, VAT, solicitor’s fees, and survey costs are incurred and Aqar Invest fees. These costs are funded by the amounts raised from investors and shown on the platform before you make an investment. We amortize these costs over 5 years, which means we spread the costs over that period. We include the unamortized amount within the estimated valuation of investments
- Who is managing the SPV company during the investment term?Aqar Invest will take care of management of the SPV during the investment term.
- Who will set up the SPV?SPV will be incorporated by Aqar Invest company when total investment amount is reached.
- Is there an ownership cap per SPV?The maximum number of shares that you can purchase in any property is 199,900 which is equivalent to 19.99% of the SPV. The cap on percentage ownership is to ensure no individual owns a beneficial interest greater than 20%.
- What is special purpose vehicle (SPV)?It is not practical for many people to be listed on a KSA land registry deed, as such each property listed on Aqar Invest is owned by a special purpose vehicle (“SPV”), which is a KSA Limited Liability Company, in which you can acquire a beneficial interest in shares. There is a different SPV for each and every property; therefore, you will always know that you are investing in a specific property chosen by you. The reason why Aqar Invest is using SPV company for its deal structure:
• management of the property expenses
• keep each investment separate
• minimize the risks
All properties are kept separately under different SPV companies and if something happens with Aqar Invest, the properties and the investments of our users will not be affected.
- How are the investments structured?Your investment in each property is made via the purchase of a beneficial interest in shares in a KSA Limited Liability Company, established specifically for purchasing that individual property.
- What information is in my Account History?The Account History section provides information on all account activities, including:
• Shares bought
• Bank transfers
• Shares sold
• Dividends paid
- What information is in my Investment Docs section?In the Investment Documents section you will find our standard legal documents:
• Investor Terms and Conditions
The terms and conditions that sets out the basis of your investment in a chosen property.
• Deed of ownership of the property
• Investor Agreement
The agreement that sets out the relationship between Aqar Invest and you as beneficial shareholders.
• Management Services Agreement
The document under which the Nominee will appoint Aqar Invest to act as manager of the property, and sets out the terms and conditions of such appointment.
• Transfer of Beneficial Interest Agreement
The agreement by you to transfer any number of shares held in the property to another Aqar Invest investor.
Please note that when funding for a new property is completed your investment will appear in the Pending Investments section. The investment will move to the Current Investment section when the property is launched in the Resale market.
- What kind of investment risks do I have?All investments are subject to risks and real-estate is not an exception. We recommend you diversify your Aqar Invest investment portfolio across multiple properties, property types to protect you from market fluctuations and other issues, which could appear during the long term investment horizon, as property prices and rental fees depend on various economic situations.
- Do I have to pay VAT on profits earned?You must pay VAT according to the legal regulations of KSA. Please contact your VAT department for detailed information.
- Which jurisdiction does Aqar Invest fall under?Aqar Invest Company is incorporated under the jurisdiction of the KSA. We are following all the laws and regulations, which are applicable to the activity of Aqar Invest in KSA.
- How much is Aqar Invest charging me?The fees relate to services that Aqar Invest provides:
• Sourcing and diligence investment grade property deals, often with significant discounts, by an in-house team of property professionals.
• Ensuring that properties are rented, managed, and maintained to a high standard, and distributing monthly dividends to investors.
• Delivering an end-to-end managed investment, including sourcing, financial statement preparation, VAT compliance, and adhering to regulatory and client monies protection requirements.
• Providing a technology platform that facilitates online investment management and reporting.
- Charge Investors for services & assets management fee: 1% (paid annually from rental income)
- Charge for rented properties management: 6% (paid annually from rental income)
- Charge investors Admin and legal fees: 2% from purchase land price (paid onetime)
- Do you have insurance on every property?All our properties are insured.
- Who is managing the property during the investment term?Aqar Invest will take care of management of the property during the investment term.
- What is Gross and Net Yield?Gross Yield is - estimated annualized percentage your money can earn on annual basis NOT INCLUDING property value increase. It’s calculated based on concluded or upcoming rental contracts.
Net Yield is - estimated net percentage your money can earn on annual basis. In other words: Income that property generates minus all relative expenses and amortization.
- How do I sell?You sell your shares under Investment section next to your profile (you will be able to do so on the upcoming secondary market). You can sell shares any time and exit investment.
- Can I sell my shares before property exits the platform?Yes. If you want to sell your share within the investment period, you need to do it on the secondary marketplace (you will be able to do so on the upcoming secondary market). As soon as other investors purchase them, your shares are sold and you receive your money immediately.
- How is the earned income distributed to investors?When you make an investment, your share will be calculated by dividing the investment amount with total investment amount. Both monthly rental income and capital gain will be divided according to the share you own in the property investment. Rental income will be distributed every 3 months, whereas, capital gain will be distributed at the end of the investment term or when you exit the investment via secondary marketplace.
- Is income generated by the property guaranteed?Yield shown is estimated based on real contracts. This means that most of the time it should be as indicated or better. Aqar Invest team pays special attention to secure that level of income from the property. The expected returns from your real-estate investments vary depending on the property type, city the property is located and real-estate market situation.
- When do I start getting rental income?You will start receiving rental income after the first month once the property is purchased.
- How do I receive dividends?You don’t have to do anything to earn dividends. It happens automatically based on agreements with tenants of the property. You are able to watch all earnings from your properties under your profile. After purchasing equity shares, we take care of property management and share all history of expenses with the investors.
- How long is the funding period for each investment opportunity?The duration of each funding period is set within the investment opportunity and differs in every case. If the total investment amount is not reached, the investment opportunity will be removed from Aqar Invest platform.
- What is the minimum and maximum amount I can invest?The minimum investment amount set in Aqar Invest equals to 10,000 SR. The maximum is 19% of the property value.
- How do I invest?Our goal was to make investing as easy for you as possible. First, you have to choose the property then sign the investor agreement, then deposit the amount into the SPV company after formulating the company and your name will be one of the shareholders of this company.
- How do I withdraw my funds?You have to make a pay-out request under your profile section. Since the safety of the investments is our priority, we complete a security check with every pay-out. After the security check, we send your funds to your bank account. This process might take around 2-3 weeks.
- How do I transfer funds to my account?Before you can transfer funds to your account, you have to verify your profile. After that, you can make a certified bank cheque or deposit via any payment available on deposit page.
- When do I know that I’m verified?Once the Aqar Invest Team has verified your profile, we will send you a notification email regarding successful verification. You can also see it on the website under the ‘Profile’ page.
- How do I verify my profile with KYC procedure?Profile verification is needed for ‘Know Your Customer (KYC) purposes and to start making investments on the platform. Once your profile has been verified, you can start investing.
- Who can become an Aqar Invest investor?Aqar Invest platform allows Saudi national in KSA market, who is older than 18 years old whose active legal capacity is not restricted. In order to proceed to investment stage, you need to verify yourself.
- What types of properties are available on the platform?Aqar Invest gives you the opportunity to diversify your investments in residential and commercial properties in KSA now then we move to other countries.
- How do I earn?There are 2 ways your investment is working for you and both are happening at the same time:
1.You get an instant income from the cash flow the property is generating, which is being regularly transferred to your account.
2.You benefit from the increase of the value of the property. You get this money right after you sell your shares.
- How does Aqar Invest select properties?We run every property through a rigorous list of criteria and filters and select the best ones. A risk profile for every potential property includes:
• Liquidity Index of the property - how easy is it to sell this property, should it be profitable.
• Vacancy Index - how easy is it to find a tenant
• Price Growth Expectation - the estimated price growth of a property of this type in this area.
Get in touch
If you have any questions or inquiries and would like assistance, leave us a message and we will contact you as soon as possible.