New York-based real estate fund, Leaseum Partners has announced a team up with the Tokeny to use the latter’s platform to launch a $250 million blockchain-enabled real estate fund.
Leaseum Partners to Launch $250 ICO
Leaseum Partners have announced that the $250 million tokenized real estate portfolio will be launched using the Tokeny platform.
According to Leaseum Partners, the fundraising is focused on income producing commercial properties in New York City.
The CEO of Leaseum Partners, Steve Sillam said:
“We have brought together world-class real estate portfolio management with the benefits security tokens can offer. Token holders will get exposure to a portfolio of New York City real estate, professionally managed. They will receive dividends and their share of the realized capital gain once the properties are sold. Real assets will back the token”
Silliam believes that by incorporating blockchain into real estate, Leaseum will create greater liquidity in a market that has been relatively illiquid in recent times.
He further stated that that the aim of Leaseum Partners is to democratize real estate investment by making it an investable asset class even to retail investors.
Asides launching an ICO, the project is employing blockchain technology to make the fund liquid and issue shares as regulatory compliant security tokens which will be listed on exchanges.
Leaseum Partners first announced the fundraising in July, but recently announced Tokeny’s ICO platform as its choice to raise the fund.
According to the first announcement, the fund is aimed at:
- making a product that is available to all accredited investors with a much lower investment minimum,
- offering enhanced liquidity, and
- increased performance through the use of blockchain technology.
Tokeny on the partnership
The Luxembourg based fintech, Tokeny is an ICO platform that specializes in issuing, managing, and trading utility and security tokens.
Tokeny said in a statement that by tokenizing the real estate sector, Leaseum Partners will give retail investors the opportunity to invest in high-cost investments, through what it describes as “fractional ownership”.
Tokeny further noted that leveraging the blockchain technology will lower the barrier for individuals to enter into the lucrative portfolio of commercial property investing.
What Leaseum Partners is promising
Leaseum Partners describes itself as the first and only project of its kind focused on raising a fund through a token sale that will be dedicated to acquiring core-plus and value-added commercial real estate in the city of New York.
Leaseum says that the project combines the best of both real estate investment management and blockchain technology, to create ‘a uniquely attractive investment opportunity for a variety of investor profiles’.
The Leaseum team consists of high profile real estate agents including David Dahan, Real Estate Chief Investment Officer, and Michael Chetrit, of the Chetrit Organisation, both individuals have managed over $10 billion in assets.
Leaseum Partners has announced that holders of the Leaseum token will benefit from capital gains rights and dividends while enjoying greater liquidity from their investment.
Investors who participate in the Leaseum ICO will have their returns delivered through smart contracts on the Ethereum network, this will be used to pay out dividends every quarter either in cryptocurrencies or fiat.
Crypto and blockchain continue to disrupt the real estate industry
St. Regis Aspen Resort becomes the first property to have its equity tokenized
The St. Regist Aspen resort was recently tokenized in what is recognized to be the first security token offering for real estate.
Propy records the first blockchain recorded property sale
The blockchain-powered real estate platform successfully completed a property sale on its platform.
Using Propy, both parties, located in different countries, were able to exchange the property rights and payment (made via Bitcoin).
Normally, an international real estate transaction is very complex as many third parties are involved (banks, lawyers, notaries, real estate agents, etc). These layers of complexity make international sales more expensive and hurt foreign investment.
The real estate industry seems to be one ripe for disruption. We will see how far blockchain tech will take it.