Be innovative and tokenize your
Real Estate Project
Security Token Offering (STO) is rapidly transforming the way we finance and sell assets, with real estate being a first-mover. Security tokens are fully regulated and provide access to a much wider investor and buyer community than ever imagined.
Interview with
Mr. I Dontknow
Artificial Real Estate Co.
Reading this will help you understand what the heck we are talking about on this website!
What is Artificial Real Estate Co.?
We are a real estate developer, specialized in the residential building and apartment segment. Last year we completed around 15 projects throughout The Netherlands and our portfolio keeps growing steadily mainly in the mid- and higher price range.
What issues were you facing?
Apartment prices are rising substantially year after year, resulting in more and more potential buyers being excluded from the market. We were looking into ways to re-open this buyers’ market to a broader audience, without having to give in on quality or margin.
How did STO help you navigate those issues?
For one of our recent projects, a building with 40 apartments, we decided to sell 30 in the traditional way and tokenize the remaining 10 via STO, meaning that digital shares in the apartment building were created and issued in the form of security tokens.
How did you engage buyers?
The security token grants a profit participation right in the form of a weekly dividend. The tokenized apartments provide rental income, which is used as a base for the dividend payments and to cover for operational costs. For this specific investment, we were able to set an expected yield of 7.5%.
What are the next steps?
We are planning to permanently include tokenization into our company strategy, as it has clearly proven its potential with this first project. As well, we are looking into the possibility to use STO as a funding instrument next to being a sales instrument, meaning that we want to issue tokens for projects that still need to be build.
How did you engage buyers?
The security token grants a profit participation right in the form of a weekly dividend. The tokenized apartments provide rental income, which is used as a base for the dividend payments and to cover for operational costs. For this specific investment, we were able to set an expected yield of 7.5%.
What are the next steps?
We are planning to permanently include tokenization into our company strategy, as it has clearly proven its potential with this first project. As well, we are looking into the possibility to use STO as a funding instrument next to being a sales instrument, meaning that we want to issue tokens for projects that still need to be build.