Private Real Estate Investing:
No strings Attached

The Parvis secondary market allows you to trade your private real estate investments during semi-annual events. Providing this level of liquidity is in stark contrast to the standard 5-10 year hold periods which make traditional private real estate investments notoriously illiquid.

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Assets become eligible for trading after the fund is fully allocated and a complete valuation of assets is set. Parvis reserves the right to change details about timing of events and eligibility of funds.

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Market Mechanics

Trade matches and pricing are determined by the buyers and sellers. Both can initiate orders that express non-binding interest in a share lot. After expressing interest, the buyer and seller will determine the final sale price via a private chat on the Parvis platform.

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When an agreement is reached, both parties will sign a Transfer of Ownership Agreement. At this time the buyer funds their purchase within 5 business days. Parvis will provide instructions to fund the purchase via wire transfer from a Canadian bank account.

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Once funds are received in the account, Parvis will process the trade by 1) transfering the proceeds net of fees to the seller and 2) releasing the share lot to the buyer's account to update the portfolio.

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Example

A seller invested in a 10 year project wants to liquidate their holdings. The recent Unit Price of the fund they own is $10.50, the seller owns 10,000 units. The predefined range in which they can sell their units is set to 20%, allowing them to place a sell order between $8.40 - $12.60. The seller selects an ask price of $11.00 and places a sell order for the full 10,000 units.

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During the secondary market event, two offers are made for the 10,000 unit share lot. One buy order wants to purchase 5,000 units at $10.90 and the second wishes to buy the whole 10,000 units at $10.75. The seller makes the final decision and accepts the lower of the two in order to liquidate their entire holdings.

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Fees

Only sellers pay a fee equal to 1% of the gross transaction amount. This is deducted from the sale amount and proceeds are delivered net of fees. There is no purchase fee for the buyer.

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Buyers and sellers in the secondary market must be eligible or accredited investors and are Canadian residents. Shares become eligible for sale after the funds primary capital raise is complete.

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Parvis reserves the right to determine final eligibility for investors and projects, with the goal  to ensure the success of the project as a whole.

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Parvis will conduct semi-annual secondary market events. These 4-week events will happen in the spring and fall. Sellers and buyers will be able to place orders on a bulletin board and determine pricing via bidding and private negotiation.

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Sellers will be able to post seller orders with their initial ask price during the first two weeks of the event.

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Parvis will conduct quarterly secondary market events. These 4 week events will happen approximately in the middle of each quarter. Sellers and buyers will be able to place orders on a bulletin board and determine pricing via bidding and private negotiation.

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Buyers will have a 2 week window to evaluate available investments, negotiate share prices and reach an agreement with the sellers.

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Sale prices are primarily influenced by the latest share price. The share price is determined by the latest valuation provided by each fund's reporting entities (the asset’s NAV).

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Sellers choose the ask price using the last share price as a starting point. The ask price can be posted at a percentage premium or discount relative to the latest share price.

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Ultimately, buyers and sellers determine the final price per share. Parvis suggests that you perform your own due diligence on all trades.

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Example

A seller invested in a 10 year project wants to liquidate their holdings. The recent Share Price of the fund they own is $10.50, the seller owns 10,000 units. The predefined range in which they can sell their units is set to 20%, allowing them to place a sell order between $8.40 - $12.60.

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The Parvis secondary market acts as a bulletin board where sellers can post sell orders. Matching is done by the buyer and seller themselves. After expressing interest, the buyer and seller will determine the final sale price via a private chat on the Parvis platform.

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When an order is agreed to, Parvis will provide instructions to fund your purchase. Buyers will have a period of 5 business days to fund the escrow account via wire transfer from a Canadian bank account.

If a buyer is not found during this event you will be able to re-list your investment for sale during the next secondary market event.

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Prior to investing, you should assume that you may be required to hold your investment for the duration of the partnership. We do not guarantee liquidity or pricing.

There are no fees to enter in the secondary market. Buyers will only pay the sale price displayed on the platform.

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Parvis will receive 1% of the transaction amount paid by the seller. Proceeds on the sale will be received net of this singular fee.

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Buyers and sellers remain anonymous when posting buy/sell orders and while negotiating share prices. It's necessary to disclose the identity of either transacting party to the respective counterparty when a transaction is executed.

Upon closing of your secondary sale, Parvis will send your proceeds (net of fees) to the bank account we have on file. We will seek to facilitate closing and settlement as reasonably early as possible, but we generally expect to distribute sale proceeds within 2 weeks after the buyer window closes.

This simply means that our secondary market is an early working version with limited access. In terms of functionality and reach, Parvis has a larger vision for the secondary market. More features will be built in the near future as we widen access to all investors on the platform.

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