Capital Raise through STO
REAL ESTATE DEVELOPERS
What are some of the benefits of Tokenization for Capital Raise?
Broader investor base; reach thousands around the world
Liquidity for investors; tokens are easily traded
Reduce cost of capital and risk of interest rate fluctuations compared to banks and institutional investors
Tokenizing real estate means creating a digital entity of the property. This entity, whose information is digitally certified on the blockchain, can be divided into numerous tokens, which represent certain rights to the subject property and can be easily transferred in a transparent, secure and traceable way.
This mechanism allows properties of enormous value to be divided, making them accessible to smaller investors and simplifying the process to drastically reduce the time needed by developers to raise the capital necessary for their projects.
A Security Token Offering (STO) can be used to raise capital towards development investments, giving the developer an alternative and/or additional, vehicle for funding pre-construction projects.
Tokenization of the real estate market is an emerging phenomenon worldwide that is increasing the number of available investment options. There are currently 41 companies in 17 countries worldwide that have already tokenized real estate. These are primarily active in the USA, followed by Germany and Switzerland. This list is growing exponentially every day.
Tokenization can also be used to create liquidity, providing an alternative and/or additional, vehicle for recycling and redeploying capital trapped in existing assets.
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