Cryptocurrency investors can now have a piece of the prestigious real estate pie, with one of Zurich’s multimillion-dollar buildings sold using digital tokens to seal the deal. Swiss real estate investment firm, BrickMark is the latest company to unlock the value of this bricks and mortar commercial property using digitally-coded tokens in one of the largest blockchain-powered investments the world has ever seen, with the sale over CHF130 million ($134 million).
Investors will have the opportunity to buy and trade these digital tokens which ultimately represent individual shares of ownership in the building without the hassle of a conventional real estate investment. Bahnhofstrasse 52, the property in the spotlight, is located in the city centre of Zurich-Switzerland and occupies over 1,600 sqm within this highly sought after retail district.
Currently, space is largely utilised by private offices with only about 15% on the ground floor being used for retail space. The new owners have plans for redevelopment in the next 24 months with a vision to redesign individual areas of the property to increase the retail space. These changes are expected to more than double the total annual rental income without reducing the existing office capacity.
For those interested to invest in this new release token-based property, not only will you get to cash in on the building’s expected surge in rental income but you will also receive benefits from any rise in the property’s value. And with a location status as one of Europe’s most important financial hubs and one of the world’s most exclusive luxury shopping boulevards, there is no doubt that this is a high-quality investment is worth considering.
“We are breaking new ground for the real estate industry. There has never been a token-financed transaction of this magnitude” says BrickMark CEO Stefan Rind in a recent statement. WeCan, a Geneva-based company, has also just finalised the deal for two properties in Portugal in an €11 million cryptocurrency-based transaction, with plans to repeat similar purchases across Europe.
But BrickMark has much bigger plans. This single purchase has now positioned BrickMark as the world’s leading blockchain real estate investment firms. BrickMark claims that the Bahnhofstrasse building is just the first purchase of many for their predicted global blockchain-powered real estate portfolio, which is predicted to be worth upwards of CHF1 billion.
BrickMark believes a digital token-based investment offers investors a far higher standard of transparency and compliance. The BrickMark tokens are based on the Ethereum blockchain, the ERC-20 protocol, which makes use of smart contracts to establish the detailed rights and entitlements to the token holders.
BrickMark is committed to the state-of-the-art reporting levels for the international real estate market, given their recent acceptance as a member of the EPRA (the European Public Real Estate Association). Under the direction from this association, they are required to report key performance metrics consistent with EPRA best practice guidelines, accounting that is in accordance with international accounting standards and also must adopt a governance code adhering to global institutional investor standards.
It doesn’t feel like all that long ago that blockchain was first announced in 2008, and as with all cryptocurrencies, it promised to revolutionise the way we manage and transact investments. While it has taken businesses over a decade to gain some confidence in the technology, it is these deals that strengthen the demand for the blockchain platform. With this $134M injection into the system and plans for more big-ticket purchases, BrickMarks are the horse to watch in this race to a cryptocurrency future.