New York City Real Estate Coin (NYCREC), a tokenized property fund, said that it would launch its security token offering in the last quarter of 2018.
New York City Real Estate Coin (NYCREC), a real estate fund that tokenized its assets, recently announced the deadline of its Regulation S securities token offering (STO). Investors outside the US will be able to take part in the STO event in the fourth quarter of this year. By holding NYCREC tokens, investors have full rights on their fractional ownership of real estate in New York. Regulation S of the US Securities and Exchange Commission (SEC) offers a safe harbor from the registration requirements of the Securities Act. It is aimed for offshore offers and sales of securities, which suggests that the upcoming STO event will be open for non-US persons only.
According to the fund, the NYCREC token holders might also have the following rights and benefits:
- Get dividends on a regular basis from the cash-flow of the real estate assets in the NYCREC portfolio. The dividends will come in the form ETH airdrops.
- Managed portfolio of real estate assets, which is well-diversified and more flexible than traditional property investment trusts (REIT). The latter are generally more specific in their scope of investment.
- More affordable expense fees than similar property investment trusts, which suggests higher profits for token holders.
- Investors will get an independent financial report on how the project evolves. The report will touch upon the finances after the STO is complete.
- People around the world will have accessibility to New York City real estate even though they don’t reside in the US.
The team behind the fund aims to tokenize properties in major cities around the world by developing a collateralized blockchain ecosystem for STOs. The company is led by investment professionals who have operated with established Wall Street firms.
The NYCREC team members have managed over $15 billion in real estate projects focused on New York and other major cities. The team can boast of an average year-over-year risk-adjusted internal rate of return of 25%.