FAQ

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General questions

FronteraLand is an online investment platform that connects investors to a wide range of real estate opportunities in emerging markets.

Frontera’s unique operating structure provides many benefits to investors, to include:

  • Investors can review investment offerings based on their unique parameters, to include geographic location, property type, and risk/return profile;
  • Can make direct allocation decisions – no need to pay exorbitant fees to an asset manager that requires discretionary investment authority;
  • Invest in high-quality real estate projects with lower minimums, while still retaining the same investor protections that large institutions enjoy;
  • A secure online dashboard which enables real-time tracking of investments; investment audits and financial reporting; and online delivery of income distributions.

 
FronteraLand is 100% owned and operated by Frontera, a global business information and research company that covers business and investment trends in the world’s emerging markets.

Frontera features real estate projects on a global scale.  Generally we will only feature projects that are based in what MSCI classifies as emerging or frontier markets. 

From time to time we may feature a unique opportunity in a ‘developed’ market if our selection committee determines that doing so would serve our interests and those of our investors.  However this will be the exception, and not the norm.

You can learn more about our leadership team here.

Frontera’s team is based in Dubai, Singapore and Washington DC.

Frontera is not a broker-dealer and does not issue securities.  We also do not charge any fees to Syndicate Leads for featuring opportunities on our platform. 

All of our fees are charged to Syndicate Followers who participate in our listed project offerings.  This structure maximizes transparency and ensures that our incentives are aligned with those of our clients. 

Syndicate Followers pay an annual administrative fee, which covers the cost of managing and auditing the special purpose vehicles that protect their interests.  Followers also pay carried interest to Frontera, which is shared with the Syndicate Lead as an incentive for providing access to a successful project.

About Real Estate in Emerging Markets

We created Frontera in 2015 because we knew there was a need for better, more informed sources on business and investment research in the world’s emerging markets.  As we quickly grew our audience, we kept conversations going with many of them.  And when asked what they wanted from us, the most frequent request was invariably “more information on real estate opportunities.” 

We’ve also noticed how the world’s largest investors are actively involved in these markets, and work with well-connected local partners to achieve outsized returns.  And as we watched sites like AngelList begin to democratize the startup investing world, we thought “why can’t someone do this for real estate?”

Those insights are what sparked the idea for FronteraLand, a syndicate-driven online investing platform for real estate opportunities in the emerging world. 

Yes it is.  This is why FronteraLand only accepts ‘accredited’ or ‘sophisticated’ investors onto its platform.  Real estate investing carries inherent risks in any market, and emerging markets bring additional risks for the unfamiliar or uninformed. 

Any investment opportunity should always be analyzed by objectively comparing its expected returns to its systematic risks.  Professional investors necessarily seek higher expected returns when investing in emerging markets in order to compensate for the elevated levels of risk.  We seek to offer appropriate opportunities on the FronteraLand platform.

You can learn more about the comparative risks between real estate in emerging markets, as opposed to developed markets, by visiting the FronteraLand Learning Center. 

One key point, which defines why we structure our investments as syndicates, is that a strong local partner can substantially reduce the risk in a potential opportunity.  This is why we seek out experienced investors and developers to act as Syndicate Leads – i.e. to produce the most favorable return/risk ratio.

About Syndicates

Syndicates are groups of investors who pool their capital together to make a single investment.  This strategy is particularly well-suited to online capital-raising platforms, which are specifically intended to reduce the minimum size of investor capital commitments and enable much larger groups to participate in opportunities.

When Frontera posts a real estate offering on the platform, investors have an opportunity to participate in that offering.  These investors become part of a syndicate, which is structured and led by a Syndicate Lead.

Once enough capital has been raised to close an offering, Frontera creates a special-purpose vehicle (SPV) to manage the capital for members of the syndicate.  The SPV is a legal entity with one purpose – to manage the real estate project on behalf of the syndicate members.  Each member receives shares of the SPV, which directly owns the underlying asset.

The syndicate SPV is administered by a professional third-party administrator, who manages funds transfers between the members and the project over the life of the syndicate.  Syndicates will also be audited on an annual basis.  Members will pay Frontera an annual fee which covers these costs.

Most online investing platforms simply connect investors to deals and charge a fee for the service. 

Frontera places investors for each of its offerings into Syndicates, which offer significant structural advantages to both investors and project owners.

Some of these benefits include:

  • Individual investors are not on their own – their interests are aggregated with others in the syndicate, which enables increased investor protections due to larger scale.
  • All syndicate members benefit from the local expertise and access of the Syndicate Lead.  This local knowledge is critical in emerging markets, where access and insight can dramatically reduce project risk.
  • Increased transparency and control.  Investors know exactly what they are investing into, and can make their own allocation decisions.
  • Lower minimum investment amounts creates better opportunities for diversification across multiple geographic regions and asset classes.
  • Lower costs than traditional discretionary fund management.

Syndicate Leads are experienced investors, project developers or real estate companies that negotiate opportunities for listing on the Frontera platform.

Each of Frontera’s real estate offerings is led by a Syndicate Lead, who is responsible for structuring the offering terms before it is listed on the platform.  The Lead must:

  • Have an extensive and successful track record of investing in a particular market
  • Be able to provide audited results of their investing performance
  • Invest a material amount of their own capital into the offering (i.e. “skin in the game”)

In return, Syndicate Leads receive many benefits from working with Frontera:

  • The ability to retain control of an investment by partnering with Frontera to raise ‘smart capital’ alongside their own
  • Carried interest from Frontera in return for bringing other investors into the deal

Syndicate Followers are eligible investors who join a Frontera syndicate that is created by a Syndicate Lead. 

Syndicate Followers can come from anywhere, and include the following:

  • Must be classified as ‘accredited’ or ‘sophisticated’ investors, as defined by the regulatory requirements of their country of residence.  Some countries like the USA (requirements found here) have strict guidelines regarding qualifications.  Contact your legal advisor if you are unsure what the relevant rules are in your jurisdiction.

Like most real estate opportunities, our syndicates generally invest on a medium- to long-term time horizon.  Most of our syndicates are structured with an intent to provide liquidity to members after three to five years.  While every effort will be made to offer liquidity within the original stated timeframe, we can give no assurances that market conditions will support a liquidity event or that the underlying project’s financial situation will permit liquidity within that timeframe.

Most of our syndicates are structured to provide immediate cash flow to members.  For those offerings, each syndicate will include an offering memorandum that specifies the payment schedule for income distributions, which will be remitted to the members.

Other real estate offerings may require that development be completed before income is generated.  Developmental offerings are more speculative in nature and will clearly be labeled as such on the Frontera platform.

Syndicate followers receive shares in a special-purpose vehicle (SPV) when the offering is closed.  Frontera does not make a market in SPV shares, nor can we guarantee that redemptions will be available upon request. 

It is possible for SPV shareholders to transfer interests to a willing seller, subject to anti-money laundering (AML) and compliance checks. 

Certain offerings will also adopt periodic redemption plans to provide liquidity, subject to certain limitations.  More information can be found, when available, in the relevant offering memorandum.

Yes. Audits are conducted annually on each active SPV, and will be disclosed to investors as part of the syndicate’s annual report.  Filings will be reported to the relevant regulatory authorities as required.

For Syndicate Followers

Individuals or institutions can create an account on FronteraLand by registering here

Institutional investors should register in the name of an individual, and provide details on their organization during the application process.

FronteraLand conducts initial due diligence on all investors.  You will be asked to complete an initial screening during the sign-up process.  Initial approval to view offerings will be granted after that screening.  Further information and supporting documentation will be required once an investor chooses to invest in an offering.

Our listed projects vary widely by geography, structure and risk profile.  Each offering will be structured with its own syndicate, and the terms will be specific to that offering.  Please review the offering memorandum and supporting documents for each offering that is of interest to you and your investment/risk appetite.

Our intent is to provide the same level of analysis and documentation that institutional investors require before committing capital.  

Each Frontera offering includes a secure data room, where registered investors can review a document repository as part of their due diligence process.  Examples may include, but are not necessarily limited to: Offering memorandums; financial models; audited financial performance of lead investors; architectural renderings; surveys; feasibility studies; photo and video footage; analyst research; and investor presentations/proposals.

Yes. Audits are conducted annually on each active SPV, and will be disclosed to investors as part of the syndicate’s annual report.  Filings will be reported to the relevant regulatory authorities as required.

Syndicate members can track the performance of their investments on FronteraLand on our secure investor dashboard.  All updates, income distributions and tax documents are stored in this area.
For US investors, all tax documents will be sent to your dashboard in accordance with Internal Revenue Service (IRS) requirements.

Yes.  Contact us for more details.

Yes, US citizens and/or permanent residents who meet the SEC requirements of an accredited investor can participate.

Generally, the minimum investment for a FronteraLand syndicate is set at US$ 25,000.  Minimum amounts may vary depending on the parameters of a particular syndicate. 

Frontera does not charge Syndicate Followers for access to the project offerings on our platform.

When a deal closes, Syndicate Followers pay an annual administration fee equivalent to one percent (1%) of capital raised. 

As the project begins to generate income, investors will recover their initial investment via distributions.  Once funds have been recovered, Frontera will charge carried interest fees to the syndicate and share those proceeds with the Syndicate Lead until the syndicate closes.

For Syndicate Leads

Syndicate Leads are experienced real estate investors, developers or asset managers who have significant and quantifiable experience in a particular market.

Syndicate Leads identify investment opportunities in which they wish to invest their own capital, and negotiate deal terms directly with the project owner.  Leads invest their own capital into the deal, and offer other investors – FronteraLand Syndicate Followers – access to the deal in return for a carried interest fee.

FronteraLand, Frontera’s online real estate investing platform, offers many compelling features and benefits to qualified syndicate leads:

  • Access to Frontera’s network of 300,000+ followers, many of whom are joining the platform to participate in institutional-quality property offerings
  • Efficient deal structure – we create an SPV and manage it on behalf of our Syndicate Followers.  Lead investors only have to deal with one counterparty (i.e. us)
  • No fees payable to Frontera.  All of our fees are paid by Syndicate Followers.
  • Opportunity to earn carried interest on the deal.  Frontera shares carried interest on all project cash flow with Syndicate Leads.

Frontera does not charge Syndicate Leads to list project offerings on our platform.  Nor do we charge any success fees when a deal closes. 

Instead of paying fees, Syndicate Leads can actually generate a new revenue stream with Frontera.  As the project begins to generate income, the syndicate will recover its initial investment via distributions.  Once funds have been recovered, Frontera will charge carried interest fees to the syndicate and share those proceeds with the Syndicate Lead until the syndicate closes.

Syndicate Leads are a critical component of our value proposition.  It is our core belief that the right partners in emerging markets can dramatically reduce the risk profile of a real estate deal.  The largest investors in the world will relentlessly seek out the best local partners for this reason.

We look for experienced investors and real estate developers who have at least a decade or more of established track record of investing in real estate deals in an emerging market that is supportive of foreign investment.  Their financial results must have been audited to be considered.  The ideal candidate should be active and closing on multiple transactions in the current year.  Finally, Syndicate Leads must invest their own capital into the deal that they lead, in other words “put skin in the game.”

Few investors meet the threshold required of a Syndicate Lead.  If this describes you, then please contact us for an introduction and discussion.

Security

Frontera is committed to data security for protection of our investors and associates.  We will never share your information with a third party without your direct consent.  We also encrypt our site with best-in-class HTTPS and SSL/TLS.