The initial sale of Estatoken was launched on May 15th, 2019—a private sale focusing solely on institutional investors, family offices, high net worth individuals, located in target areas across Western Europe, South America, and the United States. A public sale launched on July 1st, 2019, which focused on retail buyers who had the ability to invest a minimum of $10,000. The first offering announced a target goal of USD $10M.
Estatoken co-founder Chemla described a number of benefits to Security Token Academy, including “an 8% annual yield, paid out to investors on a monthly basis, as dividends” in addition to “a 75% profit share in the event of the liquidation—of one of the assets or a portion or totality of the assets.”
Chemla went on to explain, “When you take and you factor this into account, this translates into a targeted cash on cash return that can be above 30% at year five. So, it’s a very interesting investment from that perspective.” Laurent Chemla went on to describe a unique second benefit as a way for investors to claim dual citizenship. He said, “The second benefit is that investing in the Dominican Republic a minimum of $200,000 or more would allow the investor to qualify for residency status which can, in turn, allow them to get a passport within two years in the Dominican Republic. So, it’s quite interesting for some retail investors worldwide that are looking to get second citizenship in a foreign country.”
What assets back Estatoken? Estatoken is backed by “residential luxury properties,” which are under long-term lease agreements. These properties range in size from spacious seven-bedroom villas with private pools to four-bedroom townhomes and golf cottages. Laurent Chemla describes the properties as “a broad collection of a portfolio that’s been really carefully curated to optimize return for investors and also to ensure there is a diversified risk exposure when you compare this to more residential leasing or tourism properties.”