This interest has already begun since the first property in the UK to be tokenised was a student accommodation block in Nottingham University this summer, using the Stella Blockchain. The company behind this deal is called Smartlands, and it raised £12+million by selling 30% of the building to investors by offering exposure to the property for as little as £5,000. It was estimated that the yield will be 5.74%, with a target return of 15.74% p.a. on the student accommodation property. Smartlands is looking at similar digital offerings for up to £500million of residential accommodation in the UK, vineyards in the USA and a smart city in Brazil. There are a variety of companies such as Smartlands offering tokenisation services including:
Securitize: a registered transfer agent, based in the USA and with offices in Europe
Token market: the FCA-regulated firm which has raised over £230 million of Initial Coin Offerings (ICO) and currently promoting three offers
Digi shares: a Nordic-based firm looking raise capital to build a platform
Leaseum services: a team with institutional experience offering a range of services to digitise real estate, PE, Infrastructure and VC funds, as well as specific assets such as equities, bonds, property etc
Tokeny: a Luxemburg-based firm looking to issue, transfer and manage tokenized securities.
Archax: an exchange for trading asset-backed tokens (digital securities, security tokens, etc), based in London
TPX Exchange: a regulated platform that will allow one to sell as little as £250 of one’s property and which are looking to potentially digitise the $20 trillion global residential property market.
However, offering digital ownership of the property has not been plain sailing recently. In a joint venture between Fluidity (backed by Consensys and Galaxy Digital) and digital asset-focused broker-dealer Propeller, it was decided to not proceed with the $20 million tokenised Real Estate deal. This was despite getting a ‘green light’ from the Security Exchange Commission (SEC) in the USA, as Fluidity found there was simply not the institutional support to invest. Also, Blockchain ‘start-up’ Harbor and the real estate arm of Chicago-based trading firm, DRW Holdings, did not proceed with their proposed $20 million of student Real Estate project.
Interestingly Emaar, the owner of the Burj Kalifa (which at 2.722 feet is the tallest building in the world,) has issued a press release as it is looking to launch the EMR...