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The real estate industry is one of the many sectors that can greatly benefit from the advantages that blockchain offers. So it’s not surprising that Alliance Investments, one of the biggest players in real estate, is collaborating to tokenize $643 million worth of property.
The very first asset that will be tokenized is the River Plaza, a 180-unit luxury residential property, is currently being built and is slated for completion in the third quarter of 2022. Alliance Investments plans to tokenize at least $25 million of the value of River Plaza.
Through the utilization of tZERO’s tokenization technology, the property will be digitalized and a security token offering (STO) will be offered in the early parts of 2020. Meanwhile, the Tezos blockchain will be used as the foundation for the issuance of the security tokens, the announcement read.
Alliance Investment stays ahead of the competition
Alliance Investments CIO Rani Zahr expressed his excitement over the partnership and the STO’s potential in pulling traditional investors. He also said that this initiative is Alliance Investments’ attempt in maintaining its dominant position, adding that asset tokenization is the future of the real estate industry.
“We view tZERO as a leader in blockchain innovation and asset tokenization solutions and are excited to partner with them on our first STO. We strive to stay ahead of the innovation curve and believe that security token offerings are the future. They are more efficient, cost-effective, autonomous and democratic in comparison to traditional financing. We hope to continue to collaborate with tZERO to see out our real estate tokenization plan,” Zahr said.
More properties to be tokenized in the coming years
As for the remaining $618 million property, their tokenization will be transformed in the course of several years across the United Kingdom. These properties will encompass a wide range of categories that includes residential areas, student accommodations, hospitality businesses, and commercial assets.
By tokenizing these asset class, Alliance Investments aims to increase the liquidity of the properties, while simultaneously increasing their availability for public investors. This, in turn, provides new capital for future projects, which will then be turned to tokens themselves.
[Correction: The second paragraph has been edited to mention that at least $25 million of the value of River Plaza will be tokenized.]
