Six Luxembourg-based companies, including Creahus , Espace Invest , Property Token SA, Tokeny, CoinPlus and INNO, have teamed up to create and tokenize a luxury building located in the Grand Duchy. The property is located in Belval, a part of the country with a unique combination of work, housing and daily life.
Luxembourg Places Real Estate on Blockchain
According to sources close to the subject, six innovative companies in the financial, blockchain, consulting and real estate sectors in Luxembourg have successfully identified a luxury building in the Grand Duchy.
Reportedly, the team carried out the issuance of the token through Tokeny , a start that aims to facilitate the tokenization of the assets in the blockchain and the tokens were stored in an “electronic” physical vault created by CoinPlus.
The team says that the tokens were recorded in the Ethereum smart contract distribution ledger and that the minimum purchase amount has been set at 1,000 euros (approximately $ 1,114) per token.
Interestingly, project organizers have hinted that token holders will automatically receive a portion of the rent, as well as the capital gains generated when the property is sold according to the number of tokens held.
Bringing liquidity to real estate through DLT
According to the team, one of the objectives of the project is to make real estate as liquid as possible.
In that context, in the near future, the owners of the real estate token will be able to buy and sell their chips in dedicated exchanges that are currently under construction.
It should be noted that the team has made it clear that it is more or less a pilot project, since the tokens were not sold to members of the public, but instead were given to “friends and family of the organizers.”
However, in the coming months, more properties in the high-brow areas of Luxembourg will be tokenized and offered to eligible investors in compliance with state regulations.
The team said:
“THIS TOKEN ISSUANCE IS THE FIRST BLOCK OF A BROADER CONCEPT OF TOKENIZATION OF LUXEMBOURG REAL ESTATE PROGRAMS THAT WILL BE STRUCTURED IN THE GRAND DUCHY BY THE BEST PROFESSIONALS IN LUXEMBOURG, IN STRICT COMPLIANCE WITH APPLICABLE REGULATIONS. THIS INNOVATIVE CONCEPT WILL BE STRUCTURED IN ACCORDANCE WITH THE LAW OF MARCH 22, 2004, AUDITED BY AN APPROVED AUDITOR