Real estate investments get tokenised

  • By Zilla Efrat

In an Australian first, a partnership between B4Real and Tribe Digital Ventures (TDV) will bring tokenised real estate offerings to the Australian market in October.

The move will provide an institutional-grade low-cost way to build a property investment portfolio, without requiring large sums of cash upfront.

B4Real offers an end-to-end solution for people wishing to buy and sell real estate with crypto while TDV provides a platform built for companies, investors and brokers.

Caroline Macdonald, CEO of B4Real, says both B4Real and TDV have a unique first mover advantage, not only due to their combined extensive experience and networks built over the last 30 years but also the Australian Financial Services licenses they have secured over the last two years, which highlights a compliant path.

“Our combined extensive commercial networks and AFSL licensing, places us in a very strong position when it comes to security token offerings (STOs) in Australia,” she says.

Todd Pierce, a spokesperson for B4Real, says the big benefit of tokenisation is that it allows a more simplified entry and exit, meaning that it makes real estate assets liquid.

“Traditionally, real estate has been considered an illiquid asset that requires large sums of cash upfront for entry,” he says.

“The product B4Real and TDV are bringing to market removes the high-cost barrier to entry and makes the asset liquid by using tokens.

“Our goal is to create a vehicle that helps the institutional and wholesale investors have access to real-life digital assets and earn extra income and also innovate the way that developers raise funds to build their developments”

TDV CEO Chris Evans says the aim is to simplify the STO capital raising process for businesses and property portfolio owners via a debt or equity token, provide them with access to investors that they otherwise may not have access to and offer investors liquidity through an EOS500 platform and over the counter services.

“Operating under an AFSL ensures our regulatory compliance, offering genuine security in an often-unregulated market.”

Macdonald says B4Real brings with it retail outreach and a strong developer network which allows access to Australia’s best investment opportunities.

“Australia provides a great opportunity launching pad for both companies and with ease of expansion globally,” she says.

According to Evans, the first offerings will be live in October 2022 to institutional and wholesale investors only, with the retail sector opening in the later part of 2022.