In Switzerland, a building on the popular downstreet Banhofstrasse has been sold on blockchain after successful tokenization. The buyer of the property is BrickMarket, a real estate firm operating from Switzerland.
The enterprise has issued crypto tokens backed by bond, with the tokens being the equivalent of “shares” that represent the building’s ownership.
The tokens are being sold to individuals who want to receive a share of the rental income earned by the building and at the same time benefit from the appreciation in building’s value.
A Google Street View of Banhofstrasse 52, where the building is located, is provided below. As it can be understood, the building is located in the city center and commands huge demand. The building hosts several private offices and a Swatch retail outlet.
RFR Holding, which had total ownership of the building, will continue to hold a percentage of ownership following the deal. Under the sales terms, RFR will be given 20% of BrickMarket’s total supply of tokens representing the building’s ownership. That will keep RFR interested to stay as a silent partner and receive passive income in the months and years ahead.
BrickMarket has stated that the tech led property acquisition is only the initial step in a greater strategy to create a big blockchain backed real estate business that could be valued over $134 million. However, it needs to begin somewhere.
