This week, we saw one of the first examples of a digital security being issued, representing the first real-estate backed tokenization within Luxembourg.
More specifically, this project saw investors purchase portions of real estate developmental projects within the city of Belval with the entire process being facilitated by issuance platform, Tokeny.
While various STOs have caught the attention of the industry in recent months, this event is one of the first to actually undergo the issuance process.
Details of the Deal
Investors which took part in this offering were able to gain access to fractionalized ownership of the project through issuance of an ERC-20 security token. Access was given to qualified investors with as little as €1000.
These tokens entitle their holders to a proportionate share of profits garnered from the properties. This includes rent, eventual capital gains, etc.
Recognizing the need for a safe means of custody, the parties involved in this deal partnered with Coinplus. This will see Coinplus act as a custodian, with the tokens being stored in a physical vault.
Belval, Luxembourg is a former manufacturing hub which, in recent years, has undergone extensive gentrification. This process has seen the region turn into a science hub, boasting the University of Luxembourg campus.
This process has made the area a prime location for real estate developments, with high potential for future returns.
One of the major draws for investors to take part in an STO, is the promise of liquidity. While this has been quite elusive, to date, brighter days are on the horizon. In recent months, Tokeny announced a partnership with U.K. based, digital securities exchange, Archax. This partnership will see digital securities, issued through the Tokeny platform, supported on the exchange upon launch in late 2019.
Upon announcing the successful issuance discussed here today, Tokeny CEO, Luc Falempin, took the time to comment on the achievement. The following is what he had to say on the matter.
“We see real estate as one of the key asset classes that drives the adoption of tokenization. Tokenization brings the opportunity to a wider group of investors and in the long term will bring liquidity to an asset where it has been non-existent.”
Property Token is a real estate initiative that was undertaken by a pairing of companies well versed in the industry – construction company, Crea Haus, and real estate investment firm, Espaceinvest.
This initiative saw these companies reach out to Tokeny to facilitate the tokenization – and raising of capital – for a development project in Luxembourg.
Tokeny is a Luxembourg based company, which was founded in 2017. Above all, Tokeny functions as a tokenization platform, for companies looking to issue digital securities.
CEO, Luc Falempin, currently oversees company operations.
In Other News
Tokeny has, over the past year, managed to, not only develop their own public STO framework, but also see their services utilized by various entities. Naturally, this hard work has resulted in investments in the company. Below are a few articles detailing the Tokeny framework, service implementation, and investments in their efforts.