The building managed to go through a tokenization process and then be sold using blockchain.
According to information related to the real estate sector, the building was bought by the company BrickMark, which is dedicated to real estate investment in Switzerland. The building is located in Zurich, one of the most commercial and famous areas of the country.
To make the purchase and sale agreement, the company created tokens which were backed by bonds that, in this way, represented shares or parts of the property value. This means that people are able to acquire part of the building with the purchase of these tokens and become shareholders of the property. Currently, these tokenized shares can only be acquired by accredited professionals to make institutional purchases in Switzerland.
The central idea to simulate the shares of the building is to create a savings system with part of the rental income of the property. Therefore, the change in the value of the building may represent an investment when the market increases the value of the property.
One of the main reasons why the building is part of a strategic point for such investment is its location in one of the commercial areas par excellence in Bahnhofstrasse, Switzerland. This is one of the places of greatest demand. In fact, there are the largest outlets of the prestigious Swatch watch brand, as well as many other brands of great worldwide importance in its avenues,.
The commercial agreement for the acquisition of the building will allow the former owner of the property, the company RFR Holding, a part of the stock tokens. Therefore, RFR will have approximately 20% of the total amount of the encryption shares, which leads the company to make a profit on the rental of the building.
The company can sell its tokenized shares or auction them after a certain time. Although it is unknown if these shares can only be sold to people related to the sector or these tokens are part of another type of property that can be free trade; this is according to the agreement held between both companies.
The Real Estate Sector and the Innovative Technology of Blockchain
Although the process of transforming the value of property into tokens resulted to be an innovative fact, using blockchain technology to sell the property represents something completely unique and can open a range of possibilities for real estate agents in the future.
According to the movements of BrickMark, it is possible to hope that the real estate business can be transformed by technology. The company has the goal of building a whole business scheme for buying and selling real estate using blockchain technology. According to company calculations, the sector can be worth more than 134 million dollars.
Although this single purchase of the property has been made with this blockchain method, the company expects that a considerable level of business that can consolidate the technology in the sector can be achieved in the coming years.
By María Rodríguez