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.