Tok­enized real estate in the age of COVID-19

As coro­n­avirus sweeps across glob­al real estate mar­kets, it presents oppor­tunis­tic deals for those look­ing for it. Beyond reval­ued assets at dipped prices, tok­enized real estate presents fur­ther oppor­tu­ni­ties for man­agers to increase port­fo­lio diver­si­fi­ca­tion and expand geo­graph­i­cal footprint.

Black Man­ta Cap­i­tal Part­ners (BMCP) com­plet­ed a Secu­ri­ty Tok­enized Offer­ing (STO) in June 2020 for the devel­op­ment and even­tu­al sell-off of Berlin res­i­den­tial apart­ments by TIGRIS Immo­bilien GmbH. Nes­tled in the trendy Friedrichshain/Kreuzberg neigh­bour­hood, the major­i­ty of the apart­ments is primed to be the most high­ly val­ued real estate units in Berlin. Close to 20% of the total project vol­ume of approx­i­mate­ly EUR 12 mil­lion was financed via tok­enized par­tic­i­pa­tion rights.

We also want high­light three oth­er excit­ing tok­enized real estate projects in Europe:

1. Smart­lands in London

Ear­li­er this year, Smart­lands and UK’s Sotheby’s Inter­na­tion­al Real­ty set their sights on tok­eniz­ing a lux­u­ri­ous duplex apart­ment in Lil­lie Square, Lon­don. Steeped in reg­u­lat­ed asset tok­eniza­tion exper­tise, Smart­lands offers high net-worth indi­vid­u­als enhanced access to own a frac­tion of prime real estate with like-mind­ed investors. Fur­ther, tok­eniza­tion widens the investor base by offer­ing the oppor­tu­ni­ty to own a frac­tion of the cov­et­ed SW6 postal code.

2. Toke­ny Solu­tions in Monaco

In June 2020, the Gov­ern­ment of Mona­co signed an agree­ment with Toke­ny Solu­tions as the sole provider of tok­eniza­tion ser­vices. For the city-state, this marked a bold move towards a fund­ing nation sta­tus with a ded­i­cat­ed STO law. Against the back­drop of Covid19, the seal of endorse­ment by the Prin­ci­pal­i­ty of Mona­co is a clear con­fi­dence boost­er for investors look­ing for qual­i­ty real opportunities.

3. Klick­Own in Germany

A real estate crowd­fund­ing plat­form, Klick­Own, com­plet­ed an STO in July 2020 for a his­tor­i­cal com­mer­cial and res­i­den­tial build­ing in the old town of Lueneb­urg, Ger­many. This dig­i­tal offer­ing raised EUR 1.5 mil­lion with an antic­i­pat­ed annu­al return of 5%. The secu­ri­ty offer­ing lever­aged on the cus­tody ser­vices of one of the old­est, inde­pen­dent pri­vate bank in Europe, Bankhaus von der Hey­dt, for the safe­keep­ing of dig­i­tal assets.

 

Should you be inter­est­ed in learn­ing more about the Tok­eniza­tion of Real Estate, our ser­vices and oth­er STO projects, please con­tact us here.