The fractional ownership model, Tab Property, has been launched with the purchase of two Travelodge hotels in Chigwell and Snaresbrook with a combined value of £5m.
Investors can invest a minimum of £1,000 to part-own real estate assets and receive returns from rental income and capital growth without having to take on debt.
Tab will take care of the property acquisition, management, tenant requirements and reporting. There will also be a reserve fund for unforeseen costs such as void periods, maintenance and repairs.
The Travelodge hotels are expected to give investors a 7.62 per cent net yield, which will amount to a total annual return of £462,000 with an extra 2.5 per cent projected capital growth.
Tab will be looking at other investment opportunities for the fractional ownership model, including residential properties.
Duncan Kreeger (pictured), CEO and founder of Tab, said: “As an advocate for democratising real estate investment, I’m excited to introduce our latest fractional ownership product, following our acquisition of Travelodge Hotels in Chigwell and Snaresbrook.
“Our platform empowers users to tailor their property ownership to meet specific goals, allowing them to diversify their investment portfolio. We’ve crafted an intuitive, user-friendly experience aimed at widening access to property investment, enabling more individuals to tap into the returns traditionally reserved for those with substantial capital.
“Our experienced team is constantly looking for new investment opportunities, and these acquisitions are just the beginning for Tab Property.”