Use Case - Real Estate
11 June, 2026
Capital Markets - Real Estate
Almost all investors seek to diversify their financial portfolios with the relatively uncorrelated returns of the real estate sector. However, direct access to this market is often challenging due to substantial capital requirements, limited flexibility, and the illiquid nature of real estate investments.
Securitization transforms real estate exposure into a tradable financial instrument carrying an ISIN. This provides a flexible and efficient way to raise capital, finance development projects, or optimize balance sheet structures. Investments can thereby be channeled as equity, debt, or even hybrid instruments through securities that are compatible with standard banking and custody infrastructure. This allows for potential fixed-income distributions, upside participation, and enhanced portfolio diversification.
Case Study
Problem: Direct real estate investments are often limited to selected privileged investors. The high individual ticket size of a single property typically creates natural barriers to entry, even for qualified investors, and can result in concentrated exposure to one specific asset or project.
Solution: A bond, CLN, or similar instrument can reduce the effective investment ticket size by allowing multiple investors to participate in the same underlying real estate asset. This enables investors to allocate capital across several projects rather than concentrating risk in a single property, while also providing exposure to a diversified pool of real estate assets.
Such structures can be used to finance acquisition costs, development projects, refinancing activities, construction phases, or other real estate-related funding requirements. In addition, these instruments provide considerable flexibility in terms of tenors, debt/equity exposure, fixed or variable returns, and risk profiles.
Simplified Example: A CLN to Finance a New Market Entry
Qualified investors instruct their custody bank to purchase the CLN certificate via the Swiss ISIN.
Upon settlement, the CLN certificates are booked into the investor’s custody account, while the subscription proceeds are transferred to the CLN account at ISP.
ISP, acting as paying agent, transfers the proceeds to the borrower’s bank account to finance the project.
Why work with ISP:
Experience -> More than 2'500 ISINs serviced.
Understanding -> Our experience in structuring and securitizing real estate investments enables us to deliver tailored solutions aligned with our clients’ objectives.
Securities Firm -> We are a long standing, reputable Swiss securities firm with a broad team of products & securitization experts.
Skills -> Our highly skilled relationship managers, product specialists and traders are accompanied by experts, within onboarding, legal & compliance and many more fields.
Trading Lines -> 700+ financial institutions have open trading lines with us, allowing our clients numerous advantages.
Partners -> In addition to our inhouse trading services, our clients are also provided with access to trading via several prime brokers in the market.
Flexibility -> We always put our clients and their needs first, we are highly flexible and can accommodate any needs.
Other Securitization Fields:
Securitization is a highly diverse field with countless opportunities. Apart from Private Equity, Private Funds, Private Loans, Real Estate, Digital Assets, ISP is next to you to tackle any securitization need you might have, such as Green Bonds, Art, IP, and other Tangible and Intangible Assets.
Green Bonds
Institutional investors can securitize their investment strategy or assets in a security. The security can apply for a green bond certification via partner service providers.
Art, IP, and other Tangible and Intangible Assets
Art has become increasingly popular as an asset class in the investment landscape.
Investment opportunities in art, collection items or intellectual property (IP), such as brand royalties, music or film rights are typically illiquid and difficult to access.
Shariah-Compliant Products
An innovative and cost-efficient solution for professional clients seeking wealth management strategies aligned with Islamic principles.
So far, AMCs and their unique, cost-efficient structure have had limited access to the world of Islamic Finance, despite the fact that they have been widely used by professional asset managers since the early 2000s.
While early-moving banks have only recently started to offer Shariah-compliant AMCs, we, in collaboration with Amanie Advisors offer a solution without banks’ traditional counterparty risk, resulting in stability and security.