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Property Sales Process

Summary

A property sale happens when a majority of investors vote to sell, or Total Return exceeds a certain figure set out in the investment documents%. The property is then listed for saleon the market and once sold, proceeds are distributed to all investors proportionally. Typical timeline: 2 to 6 months from decision to distribution.


What Triggers a Property Sale?

Trigger 1: Governance Vote

Requirement

Details

Who Creates the Proposal

Investors

Threshold

Majority of investors vote yes

Who votes

All shareholders

Voting weight

Proportional to ownership

Trigger 2: Appreciation Trigger

Requirement

Details

Who Creates the Proposal

Arvo

Threshold

Property Value Growth reaches a certain figure, usually 40%. Set out in the investment documents.

Based on

Independent valuation

Automatic?

Arvo creates a proposal to list the property for sale and investors vote


The Sale Process

Phase 1: Decision

If Governance Vote:

  1. Investors propose to Sell

  2. All investors notified

  3. Voting period opens

  4. You vote yes or no

  5. If a majority vote yes, property is prepared for a listing

If Appreciation Trigger:

  1. Valuation shows certain Value Growth, usually 40%

  2. Arvo creates a proposal to Sell

  3. All investors notified

  4. Voting period opens

  5. You vote yes or no

  6. If a majority vote yes, property is prepared for a listing


Phase 2: Marketing

Activity

Timeline

Property listed for sale

Week 1

Marketing to buyers

Weeks 1 to 8

Viewings and negotiations

Weeks 4 to 12

Buyer secured

Varies

We work to get the best price, not the fastest sale.


Phase 3: Transaction

Step

Timeline

Sale agreement signed

Week 1

Due diligence

Weeks 1 to 4

Legal completion

Weeks 4 to 8

Ownership transfers

Week 8


Phase 4: Distribution

Step

Timeline

Sale proceeds received

Days after completion

Costs calculated

Within days

Net proceeds calculated

Within days

Distribution to your wallet

Within weeks


Example

Item

Amount

Property sale price

AED 1,000,000

Broker commission (2%)

-AED 20,000

SPV Liquidation Cost

-AED 1,500

Reserve Fund Reimbursement

+AED 20,000

Exit fee (3% of the greater of Sales Price or Funded Amount less Arvo Fees)

-AED 30,000

Net before performance

AED 968,500

Total Funded Amount (incl. all costs and fees funded at acquisition)

AED 800,000

Profit (Sales Price less sales fees and transaction costs, less Funded Amount)

AED 168,500

Performance fee (7%)

-AED 11,795

VAT

Net proceeds

AED 956,705


Timeline Summary

Phase

Typical Duration

Sale decision

1 to 2 weeks

Marketing

1 to 2 months

Transaction

1 to 2 months

Distribution

Weeks after completion

Total

2 to 6 months


Your Role

During Voting

  • Review the sale proposal

  • Consider current valuation vs. potential

  • Cast your vote (yes/no)

During Sale

Nothing required from you. Arvo handles everything. You receive updates.

After Sale

Proceeds arrive in your wallet. Decide whether to withdraw or reinvest.


What If I Voted No?

If you voted no but a majority voted yes, the sale proceeds anyway. Once a sale is approved by a majority vote, all investors are required to participate — including those who voted against. Your shares are transferred as part of the sale and you receive your share of the proceeds on exactly the same terms as everyone else.

Your vote matters, but the majority decides.


Common Questions

How will I know about votes?
Email and app notifications with plenty of notice.

Can I block a sale?
Only if enough investors also vote no to prevent a majority.

What if the property sells below valuation?
You receive your share of actual proceeds. This is a risk of property investment.

Do I have to do anything during the sale?
No. Arvo handles the entire process on your behalf.

How long until I get my money?
Typically within weeks of sale completion.


After the Sale

Once proceeds are in your wallet:

Option

Description

Reinvest

Put money into new properties

Withdraw

Transfer to your bank

Hold

Keep in wallet

The property is removed from your portfolio. The SPV is wound up.


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. Property sales require a majority investor approval, as set out in the SPV documents.

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