Leaseum partners, a New York-based real estate fund, has chosen the Tokeny platform to launch a $250 million blockchain-enabled real estate fund.
New York-based blockchain-powered real estate fund Leaseum Partners has signed a deal with Luxembourg-based fintech firm Tokeny to use its platform for token creation and management to launch a $250 million tokenized real estate portfolio focused on income producing commercial properties in New York City.
By tokenizing the real estate sector, Leaseum Partners gives retail investors the opportunity to invest in high-cost investments, through so-called “fractional ownership”, Tokeny said in a statement, noting that blockchain lowers the barrier for entry into the lucrative portfolio of commercial property investing.
"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," Leaseum Partners CEO Steve Sillam commented.
According to Silliam, incorporating blockchain into real estate creates greater liquidity in a market that has been relatively illiquid. Ultimately, their aim is to democratize real estate investment by making it an investable asset class even to retail investors.
Returns to investors will be delivered through smart contracts on the Ethereum network to pay out dividends every quarter either in cryptocurrencies or fiat. Holders of the Leaseum token are promised benefits from capital gains rights and dividends while enjoying greater liquidity from their investment.
Tokeny CEO Luc Falempin commented on the deal:
"The mix of proven real estate business experience along with the benefits of security tokenization has created a truly exciting business."
In a previous interview with Cryptovest, Aiai Garcia, Asian head of ConsenSys Solutions, said the company is also launching a blockchain-based real estate fund in the Philippines to unlock opportunities in real estate. Consensys’ Meridio would roll out funds out of tokenized real estate assets.