Summary
A property sale is triggered when either a majority of investors vote to sell, as set out in the SPV documents, or appreciation exceeds 30%. Once sold, proceeds are distributed to your wallet after costs. You can then withdraw or reinvest.
Two Paths to a Property Sale
Path 1: Governance Vote
Investors vote on whether to sell the property.
How it works:
Arvo proposes a sale (usually after 3 to 5 years)
All shareholders can vote
If a majority vote yes, the sale proceeds
If the vote fails, the property continues operating
If a majority approves the sale, all investors participate — including those who voted no. Your shares are transferred as part of the sale and you receive your share of the proceeds.
You have a say. Your shares equal your votes. Voting will be shipped and live in a few months, post launch.
Path 2: Appreciation Trigger
If property value increases by more than 30%, a sale proposal may be triggered. The exact trigger percentage is mentioned in the property details page at investment
This ensures investors can lock in significant gains rather than waiting indefinitely.
The Sale Process
Step 1: Sale Decision
A governance vote passes, triggered by investors or at an appreciation % trigger .
Step 2: Property Listed
Property is listed for sale on the open market at fair market value.
Step 3: Sale Completes
Buyer found, transaction closes, ownership transfers.
Step 4: Proceeds Calculated
Sale price
Agent commission deducted
Legal fees deducted
Transfer costs deducted
Exit fee (3% of the greater of Sales Price or Funded Amount less Arvo Fees) deducted
Performance fee (7% of profit) deducted
= Net proceeds
Step 5: Distribution
Your share of net proceeds goes directly to your Arvo wallet.
Typically within days of sale completion.
What You Receive
Your distribution is based on your ownership percentage.
Example:
You own 1% of the property
Net sale proceeds: AED 110,000
Your distribution: AED 1,100
Plus any rental income earned up to the sale date.
Timeline
Stage | Typical Timing |
Sale decision | Day 0 |
Property marketing | 1 to 3 months |
Buyer found | Varies |
Transaction close | 1 to 2 months |
Distribution | Within days |
Total process: usually 2 to 6 months from decision to distribution.
What Costs Are Deducted?
Cost | Typical Range |
Agent commission | ~2% of sale price |
Legal costs | Fixed amount |
Transfer costs | Government charges |
Exit fee | 3% of the greater of Sales Price or Funded Amount less Arvo Fees |
Performance fee | 7% of profit generated, charged only when the property is sold. Profit is the Sales Price, less sales fees and transaction costs, less the total Funded Amount (including all costs and fees funded at acquisition). |
All costs are estimated in the original property listing. No surprise deductions.
After Distribution
Once proceeds are in your wallet, you can:
Withdraw to your bank account
Reinvest in new properties
Hold in your wallet
The property is no longer in your portfolio. The SPV is wound up.
Common Questions
What if I don't want to sell?
You can vote no. But if a majority approves the sale, the property will be sold. Your shares are transferred as part of the sale and you receive your share of the proceeds.
What if the property sells for less than expected?
You receive your share of actual proceeds. The performance fee only applies if the sale generates a profit. No profit, no performance fee.
Can I sell my shares instead of waiting?
Yes, use exit windows to sell to other investors before a full property sale.
How will I know about votes?
Email and app notifications.
Summary
Trigger | Requirement |
Governance vote triggered by an investor or a property appreciation | Majority of investors vote yes |
After Sale | What Happens |
Costs deducted | Agent, legal, fees |
Proceeds distributed | To your wallet |
SPV closed | Property exits your portfolio |
All investments carry risk. Real estate price can increase and decrease in value. Past performance is not a guarantee of future returns. Arvo is regulated by the DFSA.