A Special Purpose Vehicle, or SPV, is a company that’s set up to own and manage a single asset - like a specific property.
In real estate, SPVs help keep things simple and separate.
Each property gets its own SPV, so its finances, paperwork, and ownership are all kept in one clean container.
Why use SPVs?
SPVs make it easier to:
- Keep each property deal separate from the rest
- Allow many people to invest in the same property by buying shares in the SPV
- Handle the money, admin, and decisions for that one property through a single structure
How do SPVs work for investors?
Instead of buying the property itself, investors can buy shares in the SPV - which means they’re part of that property’s ownership.
The SPV then uses those funds (sometimes with a loan too) to purchase and manage the property.
Who makes the decisions?
That depends on the structure - often there are different types of shares that separate management control from investor participation. The details are usually set out in a shareholder agreement.
In a Nutshell:
An SPV is a company created just for one property. It helps keep things tidy, lets many investors get involved, and makes the admin easier to manage.