A UK-based proptech startup, Fractal Homes offering fractional home ownership across Europe’s capital cities, has nabbed $30 million in seed funding. Star Capital led the equity portion of the round while the additional debt investment participation came from a London-based private credit fund.
Ambitious expansion plans
Fractal Homes will use the funds to scale its UK operations with selective hiring ahead of a targeted expansion in the Middle East next year. It plans expansion into other holiday and business destinations, such as Paris and Madrid, and sees potential in ski resorts and Mediterranean beach destinations.
Also, the debt capital will go towards the acquisition of luxury properties in sought-after destinations in West London, including Knightsbridge, Notting Hill, Chelsea, Kensington, and Mayfair. In addition to this announcement, Fractal Homes have launched a new website and their first offering of four luxury apartments across London.
“Fractal Homes’ platform makes it easier for buyers to own and enjoy second homes in desired European cities. We make second home ownership more accessible by splitting each home into eight equal parts, reducing the initial capital outlay required to buy the home and the often-overlooked high cost of running a property. 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 buyers a hotel-like experience” explained Labib Kaddoura, co-founder of Fractal.
“Initially we will predominantly focus on a Middle Eastern clientele wanting to buy a second home in London for work and leisure. The attractiveness of European capitals for Middle Eastern buyers as centres of business, culture and entertainment coupled with a good market entry point seeing the recent appreciation in USD; makes it a very opportune time for buyers to consider the fractional ownership model” said Wadih Abou Bechara, co-founder of Fractal.
Eric Martineau-Fortin, CEO and Managing Partner at Whitestar Capital, said: ”We were immediately impressed by the calibre of the Fractal team, who have 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 disruptive and scalable solution. Furthermore, the Fractal team’s ambition is strongly aligned with our views of growing connectivities between the GCC region and Europe.”
Second home co-ownership made easy
Fractal Homes was founded in 2022 by Labib Kaddoura and Abou Bechara, French and British nationals of Lebanese origin. They are former JPMorgan and Merrill Lynch investment bankers who spent the last nine years as co-founders of a boutique debt advisory firm based between London and Dubai.
The company wants to upend conventional second home ownership. It offers access to prime real estate at a fraction of its cost and creates a much lower entry point for Middle Eastern buyers looking to acquire a luxury second home in Europe. Fractal aims to make second home ownership affordable, accessible, and hassle-free through its managed co-ownership model.
The company plans to grow its headquarters in London, with a particular focus on sales, marketing, and engineering hires. Fractal is also looking to expand its presence abroad next year with a base in Abu Dhabi.
