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How are fees calculated and allocated?

This article explains how PRYPCO Blocks fees are calculated, what they’re based on, and how they are shared proportionately across investors.


How fees are calculated

  • Fees are percentage-based

  • Fees are applied at the property level

  • Your share of any fee is calculated pro-rata, based on your ownership percentage

Pro-rata rule:

Your portion of any fee = your ownership % × property-level fee


Key terms explained

  • Funding Target
    The total amount required to acquire the property, including the purchase price and acquisition/closing costs.

  • Investment Cost
    The Funding Target plus applicable acquisition and compliance fees.

  • Sale Value
    The gross selling price of the property at exit.


Fee overview (investor-side)

(All fees below are applied at the property level and shared across all investors)

Entry (Acquisition) Fee — 1%

  • Calculated as 1% of the Funding Target

  • Charged once, at the time the property is acquired

  • Shared pro-rata across all investors

KYC & AML Fee — 0.2% at acquisition, 0.1% annually

  • 0.2% of the Funding Target charged at acquisition

  • 0.1% of the Funding Target per year thereafter

  • Allocated pro-rata based on ownership

Annual Administration Fee — 0.5% (from Year 2)

  • No administration fee applies in Year 1

  • From Year 2 onwards, 0.5% of the Funding Target per year

  • Shared pro-rata across all investors

Exit Fee — 2.5%

  • Charged when the property or Blocks are sold

  • Calculated as 2.5% of the greater of: the Funding Target, or the Sale Value

  • Allocated pro-rata based on ownership

Property Appreciation (Incentive) Fee — 7%

  • Applies only if there is a gain at exit

  • Calculated as 7% of the excess return above the Investment Cost, net of transaction costs

  • If there is no gain, no incentive fee applies


Worked example (illustrative)

Assumptions

Funding Target: AED 2,000,000

Your ownership: 5%

Entry fee

1% × 2,000,000 = AED 20,000

Your share (5%) = AED 1,000

KYC & AML fee (at acquisition)

0.2% × 2,000,000 = AED 4,000

Your share = AED 200

Annual admin fee (from Year 2)

0.5% × 2,000,000 = AED 10,000

Your share = AED 500 per year

Exit fee (if Sale Value = AED 2,200,000)

2.5% × 2,200,000 = AED 55,000

Your share = AED 2,750

Incentive fee (only if there is a gain)

If Investment Cost = AED 2,030,000

Excess return = AED 170,000

7% × 170,000 = AED 11,900

Your share (5%) = AED 595


Where can I see these fees for a specific property?

For a property-specific breakdown, including how fees impact projected returns:

👉 Review the financial projections available on each property page in the PRYPCO Blocks app.

If you have any questions or need further assistance, you can contact our team via the live chat in your Blocks application or by emailing discover.blocks@prypco.com from your registered email address.

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