ARREIT · Roowang

© 2025 Roowang by Consurv Technic Sdn Bhd
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What You Need to Know (1/2)

  • Today’s problem: the market price sits below the value of the buildings.
  • Why: hard for regular people to join; trading is thin; confidence is uneven.
  • Our angle: split each unit into small pieces so anyone can own a slice.

Numbers That Matter

  • Price vs Value: ~RM0.34–0.63 vs Net Asset Value (NAV) RM1.2717 (as of 31 Mar 2025).
  • Minimum today: ~RM63 for a standard lot.
  • NAV (Net Asset Value): RM729m (as of 31 Mar 2025)
  • Total Asset Value: RM1.30b (FY2024 highlights)

NAV (Net Asset Value) = per‑unit value of buildings after debts.

What You Need to Know (2/2)

  • Analogy: like slicing a pizza — you buy a slice, not the whole pie.
  • Trust anchor: AmanahRaya (GLC trustee) holds the real assets; your token is your claim.
  • Cashflow: rent is shared automatically — no forms.

Key Terms (Plain‑English)

  • Custodian: trusted entity that safely holds assets.
  • Liquidity: ease of buying/selling without big price swings.
  • Gearing: how much debt a fund uses (42.9% as of 31 Mar 2025; safe cap 50%).

The Challenge

  • Hard to access: minimum lots turn people away.
  • Thin trading: few buyers/sellers → slow price discovery.
  • Gap to real value: price drifts below building value.

Access

Liquidity

Confidence

Red bars show weak spots today.

Numbers That Matter

  • 12 properties in ARREIT
  • RM729M portfolio (Mar 2025)
  • Gearing 42.9% (as of 31 Mar 2025; below 50% cap)

The Simple Solution

  • A. Small slices: buy RM10–50, not a whole lot.
  • B. Safe keeping: AmanahRaya holds the assets; we mirror ownership.
  • C. Automatic payouts: rent flows to holders on time.
A Fractional Tokens
B AmanahRaya Custody
C Auto Rent Distribution

Legend: A = small slices | B = custody | C = payouts

Numbers That Matter

  • 1 unit → 1,000 tokens (1:1 backed)
  • Minimum buy: 10 tokens
  • Rent shared quarterly to holders

Impact

  • Fairer pricing: more buyers → price closer to building value.
  • Bigger base: easy entry brings in Malaysians and diaspora.
  • Smoother income: payouts like clockwork build trust.

Investor Base

Price vs Value

On‑Time Payouts

Icon grid = more people; green bars = better pricing and reliability.

Numbers That Matter

  • Potential market: ~RM5.56B (domestic + diaspora)
  • Goal AUM tokenized: RM1B (Yr5)
  • Platform revenue at RM1B: ~RM6M / year

Trust & Protections (Plain English)

  • Who keeps assets safe: AmanahRaya (government‑linked trustee). Active Custodian Registry live; optional non-transferable attestation SBT for public audit only (no rights; not a bearer of legal title).
  • Active Custodian Registry fields: custodianAddress, status, validFrom, docHash.
  • How your share is recorded: secure online ledger (like a passbook).
  • If a holder passes away: tokens move to named beneficiaries (digital will).

Numbers That Matter

  • AMANAH RAYA legacy: 100+ years (since 1921)
  • Shariah features: will, inheritance flow, zakat calculator
  • Audit & reconciliation: every payout cycle

Analogy: tokens are named lockers; AmanahRaya holds the master key; we track which locker is yours.

Custodian Change Flow

Appoint → Registry update → Attestation SBT mint → Prior attestation revoke.

Distribution engine checks the Active Custodian Registry before payouts; trustee controls an emergency pause.

```mermaid
flowchart LR
  subgraph Legal
    Deed[Trust Deed & Appointments]
  end
  Deed -->|appoints| Trustee[(AmanahRaya Trustee)]
  Trustee --> SPV[SPV/Trust holds ARREIT units]
  subgraph On-chain
    ST[Security Token (ERC-3643/1400)]
    REG[(Active Custodian Registry)]
    SBT[[Attestation SBT (non-transferable)]]
  end
  SPV -->|beneficial interests| ST
  Trustee -->|status/docHash| REG
  Deed -->|hash only| SBT
  ST --> Dist[Distribution Engine]
  REG --> Dist
  Dist --> Holders[(Whitelisted Holders)]
```

Worked Example (Illustrative)

Assume NAV (Net Asset Value)/unit = RM1.2717 (as of 31 Mar 2025) and 1 Bursa unit = 1,000 tokens.
If initial issuance targets P/NAV (Price-to-Net Asset Value) = 0.90×, issue price per token ≈ (1.2717 × 0.90) / 1,000 = RM0.0011445.
UI displays tokens in RM1 denomination; wallet shows quantity and cashflows; price floats thereafter.

Term Sheet (Link)

Rules & Rollout Path

  • Start small, start safe: launch as a regulated pilot in Labuan.
  • Independent checks: regulator reviews the plan before sale.
  • Grow by proof: expand to more people after pilot results.

Numbers That Matter

  • Phase 1 (0–3 mo): approvals, contracts, code audit
  • Phase 2 (4–6 mo): pilot RM10M; first on‑time payout
  • Phase 3 (7–12 mo): scale to diaspora; list on exchange

Analogy: get a learner’s permit on a quiet road, then the highway after we pass the test.

Risks & How We Reduce Them

  • Thin trading: set market‑making budget; list on a reputable platform.
  • Approval delays: submit a complete pack; start with a small group.
  • Technical errors: code audit; emergency pause; daily checks with AmanahRaya.

Trading Depth

Approval Readiness

Tech Assurance

We tackle liquidity, approvals, and tech safety first.

Guardrails

  • Price near NAV: target ±5% after month 2; publish P/NAV (Price-to-Net Asset Value) band and average daily spread targets; report monthly
  • Daily trades: target consistent activity post‑launch
  • Zero payout errors: confirmed by reconciliation

Leadership Cheat Sheet

  • Fact: RM1 of buildings selling for ~53 sen (big gap to close).
  • Opportunity: RM10 entry opens a ~RM5.56B market (domestic + diaspora).
  • ROI: RM1B tokenized ≈ ~RM6M annual platform revenue by Year 5.
  • Risks: liquidity, approvals, code safety — all with named mitigations.
  • Decision ask: green‑light MoU, filing, audit, and pilot budget.

Quick Glossary

  • NAV: true per‑unit value of assets after debts
  • Liquidity: ease to buy/sell without moving price
  • Custodian: trusted safeguard of assets (AmanahRaya)

Next Steps for Leadership (Owners & Deadlines)

Validation check: ask one non‑finance teammate to explain the deck’s purpose and their action in 30 seconds. If not, we revise.

Appendix — Deep Dive (Not Required for Decision‑Making)

Appendix A — How a Token Maps to a Real Unit

  • 1 real unit on the stock exchange is split into 1,000 tokens.
  • Safe keeping: AmanahRaya (trustee) holds the real units in a separate account.
  • Your token is your claim on that pool — like a numbered locker.
  • Buy/Sell: you trade tokens any time on the approved platform.
  • Redeem: when you hold enough tokens for 1 whole unit, you may swap back (subject to fees).
A Buy tokens (small slices)
B Tokens recorded on secure ledger
C Backed by real units held by AmanahRaya

Legend: A = purchase | B = record | C = safe keeping

Numbers That Matter

  • 1 unit → 1,000 tokens (1:1 backing)
  • Minimum buy: 10 tokens
  • Redemption threshold: tokens ≥ 1 full unit

Appendix B — How Rent Money Reaches Holders

  • Step 1: ARREIT receives rent from properties.
  • Step 2: ARREIT declares a quarterly payout.
  • Step 3: AmanahRaya receives the payout for the token pool.
  • Step 4: Our system splits the money by each holder’s token count.
  • Step 5: Holders receive cash into their linked account or wallet.

Payout Reliability

Reconciliation

Error Handling

Every cycle is matched against the trustee’s records. Any mismatch pauses payouts until fixed.

Example Math

  • You hold 2,500 tokens → 2.5 units
  • Quarterly payout: RM0.02 per unit
  • Your cash: 2.5 × RM0.02 = RM0.05

Figures for illustration only. Actual payouts follow official declarations.

Appendix C — Price vs Value (NAV) & Liquidity Plan

  • Net Asset Value (NAV): the per‑unit value of the properties after debts.
  • Goal: keep token price close to NAV (target band ±5%).
  • Tools: market‑making funds, education, and steady comms.
  • Signal lights: if price drifts beyond the band, we add liquidity.

Price–Value Alignment

Green bar shows desired alignment after launch momentum builds.

Numbers That Matter

  • Current gap (example): ~47% below NAV
  • Target by month 6: ≤ 20% below NAV
  • Stability target: ±5% around NAV with depth

Appendix D — Estate & Shariah (In Plain English)

  • Wasiat (will): add beneficiaries inside the app.
  • If a holder passes away: tokens are frozen; documents verified with AmanahRaya.
  • Distribution: tokens/cash move to the right people per the will and Islamic inheritance rules.
  • Zakat (almsgiving): calculator estimates 2.5% of eligible value; you choose to pay.
A Name beneficiaries
B Verification with trustee
C Distribute to heirs

All steps are logged and time‑stamped for transparency.

What to Know

  • Shariah Board review before launch
  • Standard operating procedure (SOP) with AmanahRaya
  • Helpdesk trained for estate questions

Appendix E — Simple Regulatory Path

  • Phase 1: Pilot under Labuan’s digital finance framework (private offer).
  • Phase 2: Expand to more investors after proof of safety and demand.
  • Phase 3: Explore broader distribution with partners once metrics are stable.
  • Documents: custody agreement, offering note, risk statement, policies.

Approvals Prep

Compliance Checklists

We use a staged approach: start small, prove safe, then scale.

Timeline (Guide)

  • 0–3 months: filings + audits
  • 4–6 months: RM10M pilot live
  • 7–12 months: scale to diaspora

Appendix F — Money In, Money Out (Plain Terms)

  • Management fee: 0.5% per year on tokenized assets (keeps the lights on).
  • Trading fee: 0.25% per buy/sell (covers platform costs).
  • Custody share: 0.1% (goes to trustee for safe keeping).
  • Performance share: 10% only if returns beat the main index.

Five‑Year Trajectory (Illustrative)

Year 1 AUM

Year 3 AUM

Year 5 AUM

At RM1B tokenized by Year 5, platform revenue ≈ RM6M / year (fees combined).

Numbers That Matter

  • Yr1: RM10M · Yr2: RM50M · Yr3: RM200M
  • Yr4: RM500M · Yr5: RM1B
  • Costs: audit, security, market‑making, support

Appendix G — What We Measure

  • Price vs Value: discount to NAV (goal: shrink from ~47% → 20%).
  • Trading: monthly token volume; number of trading days with activity.
  • Payouts: on‑time rate; zero error rate.
  • Growth: active investors; assets tokenized (AUM); customer satisfaction.

On‑Time Payouts

Discount to NAV

Green shows reliability; amber shows room to close the price gap.

Targets (First 12 Months)

  • RM10M tokenized; 1,000 investors
  • ≥ RM1M monthly trading
  • NPS ≥ 50; churn ≤ 2%/mo

Appendix H — Risks Register (Plain English)

  • Liquidity stays thin → price lags value → Mitigation: market‑making, education, partner listings.
  • Approval takes longer → launch shifts → Mitigation: staged pilot, complete pack, weekly check‑ins.
  • Tech error in payouts → trust dented → Mitigation: third‑party audit, pause switch, manual fallback.
  • Operational bottlenecks → slow service → Mitigation: SOPs with trustee, SLA dashboards.

Owners

  • Treasury: liquidity and pricing band
  • Legal/Compliance: approvals and filings
  • CTO: code safety and monitoring
  • Ops Lead: reconciliations and support

Appendix I — Glossary (Plain Language)

  • Net Asset Value (NAV): true per‑unit value of the fund after debts.
  • Custodian/Trustee: independent party that holds assets for investors.
  • Liquidity: ease of buying/selling without big price swings.
  • Gearing: how much debt the fund uses compared to assets.
  • Market‑making: providing buy/sell quotes so trading is always possible.

Helpful Analogies

  • Tokens = slices of a pizza
  • Custody account = safe deposit box
  • Ledger = online passbook with names

Disclosures — Document Hash Index

Title Date CID/Hash
Trust Deed (redacted) DD MMM YYYY bafy...
Trustee License DD MMM YYYY bafy...
Valuation Letter DD MMM YYYY bafy...

Privacy/PDPA: We publish only document hashes (no PII) on-chain; documents remain off-chain with regulated access.

Attestation SBT (non-transferable): public audit token only; no legal or economic rights attached.