UK: Second-home ownership platform Fractal Homes has raised £30 million in seed funding, led by White Star Capital.
Fractal Homes has four luxury apartments in London with plans to expand in Paris and Madrid. Ski and beach destinations are also in the pipeline.
White Star Capital led the equity portion of the £30 million funding, with additional debt investment from a London-based private credit fund.
Labib Kaddoura, co-founder of Fractal, said: “Fractal fully manages the property and takes care of cleaning, maintenance and all operational aspects that come with the running of a home to give our buyers a hotel-like experience.”
Owners of Fractal properties, which are available to purchase in one-eighth increments, will use the Fractal app to book stays and schedule additional services such as child care.
The company is targeting buyers from the Middle East such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Wadih Abou Bechara, co-founder of Fractal, added: “Being from, and having lived in, the Middle East, we know first-hand how beneficial a second home is for individuals and families who spend a lot of time traveling between two countries for business, schooling, and leisure. The attractiveness of European capitals for Gulf Cooperation Council (GCC) buyers, coupled with a good market entry point seeing the recent appreciation in USD, make it a very opportune time for buyers to consider the fractional ownership model.”
Eric Martineau-Fortin, CEO and managing partner at White Star Capital, said: “We were immediately impressed by the caliber of the Fractal team, who has identified a key pain point in home ownership that can be solved through the combination of technology and an innovative approach. We’re very excited to be with them on this journey to disrupt the property co-ownership model through their scalable solution. Furthermore, the Fractal team’s ambition is strongly aligned with our views of growing connectivities between the GCC region and Europe.”