The EU tokenization market just got a jolt of energy after Black Manta Capital Partners announced a strategic partnership with the German real estate firm, Tigris Immobilien. The partnership will help facilitate the tokenization of $12 million in high-end properties located in Berlin. The news showcases accelerated adoption within the EU sector, as well as, how tokenization brings professional opportunities to the regular investment community.
According to company documentation, Black Manta Capital Partners intends to purchase high-end real estate projects located in and around the Berlin area. In total, the firms seek to acquire around 2000 square meters of real estate. These properties include a variety of individual apartments from 40 to 60 square meters in size. Once the properties are in the firm's portfolio, the group seeks to have the units updated and then sold to investors and owner-occupiers.
Notably, the total value of the project is expected to be €10,943,398. Additionally, the firms will finance an additional EUR €1,999,500 via the real estate token offering (RETO). Importantly, the group estimates a 2022 completion date for the project.
Discussing the decision, Black Manta’s co-founder, Christian Platzer spoke on the advantages tokenization brings to the market. He explained how blockchain technology enables lower transaction costs, increased transferability, and streamlined tradability. Platzer also touched on how tokenization eliminates the need for third-party verification systems such as notaries.
The Black Manta Capital Partners RETO
The Black Manta Capital Partners RETO started on April 14th, 2020. Importantly, the firm chose to keep the minimum investment amount reasonable to encourage participation from regular investors. As such, the minimum investment is only €500. In contrast, major investors have a maximum amount of nearly €2 million.
The RETO is only available to residents of Germany and Austria at this time. Despite this fact, Black Manta Capital Partners stated that more STOs will be carried out on its platform this year. Specifically, the group has plans to host a series of other EU-wide offerings. Importantly, these offerings will cover a wide range of tokenized assets including startup securities, small-medium enterprises, and funds.
Investors in the Black Manta RETO gain a host of benefits for their participation. For one, investors are privy to dividends from the sale of the residential apartments and their subsequent purchases. Additionally, investors gain preference during the sale of the apartments. Lastly, token holders receive a share of twenty percent (20%) of the total profit following the sale of the entire project.
Crucially, Black Manta Capital Partners' RETO has the blessing of regulators. Specifically, the event is regulated by the German regulator BaFin, the Federal Financial Supervisory Authority. Describing the approval process, Platzer called it “straightforward.” However, he did point a need for more regulated custodial firms in the space. He explained that these firms will bring the liquidity of bigger players to the market.
Germany Gets A Leg Up on The Competition
As the tokenization race continues to heat up across the globe, this latest development catapults Germany to the forefront of the EU RETO sector. This positioning could strengthen in the coming weeks as the Black Manta Capital Partners RETO gains momentum. For now, this crowdfunding campaign represents a huge milestone for the entire EU market.