CREST is a new initiative focused on Commercial Real Estate (CRE) financing powered by security tokens. The real estate industry has been impacted greatly by technology in recent years, and many experts believe the next wave of disruption will be the tokenization of real estate assets that enables investors to purchase ownership stakes in a given asset through digital tokens. The focus of this CREST initiative is about how commercial real estate financing is being disrupted by tokenization.
CREST is supported by the Security Token Academy (STA), the leading organization in covering and facilitating the security token industry.
On our CREST website, you will find a case study on The Tokenization of the St. Regis Aspen Resort. This study covers one of the first cases of tokenizing a commercial real estate property. Valued at $224 million, the St. Regis Aspen Resort is a trophy property and a luxury destination located in Aspen, Colo. An equity raise of the property in August 2018 brought in $94 million with a cap rate of about 5.8 percent. This was executed in conjunction with a regulated security token using Reg D – 506 (c).
Other examples of real estate assets being tokenized can be found in STA’s free weekly newsletter, The Security Token Edge. Our academy’s Director of Strategy, Derek Edward Schloss, reports on these transactions in this newsletter. Click here to subscribe.
Here is a recap of a few stories curated in The Security Token Edge newsletter about tokenized commercial real estate:
- La Estancia Holdings has offered investors blockchain-based fractional shares in oceanfront villas, townhomes and hotel properties in the Dominican Republic. Curated from Nicholas Marinoff’s article on Decrypt,com, 08/27/2019.
- Two Luxembourg key real estate players (Property Token S.A. and Espace Invest S.A.) launched the first issuance of a real estate token in that country. Digital securitization allowed a club of private investors to hold tokens, a digital representation registered on the blockchain, of the rights to a building located in the Grand Duchy. Curated from the Tokeny.com website, 07/2019.
- Liechtenstein’s Crowdlitoken AG’s prospectus for a tokenized real estate investment product was approved by the Liechtenstein Financial Market Authority. This offering is a digital representation of a subordinated bond, whereby both the bond and the underlying real estate are digitized via blockchain. Holders of these tokens can select the properties they want to invest in and thereby tailor their portfolios. Curated from Crowdlitoken AG’s press release, 07/19/19.
At the CREST website, you can stay up to date on commercial real estate tokenization and financing powered by security tokens.