Germany’s premium financial services company Black Manta Capital Partners has launched a real estate token offering worth twelve million US dollars ($12 million) in collaboration with a German real estate company, Tigris Immobilien, according to the official announcement on the website.
The multi-trillion dollar real estate industry across the globe faces multiple challenges, primarily concerning transparency and security. Tokenization, also referred to as the digitization of assets, is gradually paving the way for a new face of the industry that is suited to the digital age.
Black Manta initiates real estate token offering
Thus, in its efforts to promote one of the most promising and profitable use cases of blockchain technology, Black Manta is reaching out to big-ticket investors from Germany and Austria, to participate in its extensive security token offering, starting 14th April 2020, with a starting price as low as five hundred euros (EUR 500).
Some of the noteworthy project highlights include token owners being entitled to a fair share of profits arising from the sale of the residential apartments in Berlin and their subsequent purchases.
Touted as one of the high-end real estate projects of Berlin, the total value of the massive-scale project is expected to be over ten million euros (EUR 10,943,398), out of which, close to two million euros (EUR 1,999,500) will be financed through real estate token offering.
Besides getting the preference during the sale of the apartments, the token holders will also be involved in twenty percent (20%) of the total profit following the entire project sale. The capital injected by the investors will be solely used for growth and realization of this project, the announcement states.
Future of STOs in real estate
Speaking to CoinTelegraph following the announcement, Black Manta’s co-founder, Christian Platzer, said that the STOs are transforming the way the conventional real estate industry operates. Thanks to tokenization, it now boasts reduced transaction and operational costs, better interoperability, and traceability. Investing in real estate has never been this easy and straightforward, Platzer exclaimed.
When asked about what he believes is the future of the STOs, Platzer said that for the broader adoption of the tokenization services, the crypto custodian market needs to evolve and grow. Only when we have regulated crypto custodian service providers in the market will the institutional investors be willing to bring in more liquidity pool, he affirmed.
Meanwhile, in similar news, Overstock’s tZERO collaborated with Tezos foundation last year to tokenize UK’s lavish real estate project worth twenty-five million US dollars ($25 million). The prestigious tokenized sea-facing project is currently under construction in Manchester and marked the UK’s first successful stint with real estate token offering.