Source: Grayscale
Prime commercial real estate gem Bahnhofstrasse 52, in the heart of the eighth most expensive retail location worldwide, has reportedly been converted into a blockchain-enabled investment following its $134-million sale (CHF130 million). The high-tech property transfer is Zurich, Switzerland’s most recent move to tap into the value of physical real estate properties by using digital tokens.
Purchased by Zug-headquartered real estate investment company BrickMark on January 15th, the building has several business offices and a Swatch retail outlet. The firm issued blockchain-based tokens, underpinned by a bond, that can be acquired and traded by investors who are interested in earning a portion of the luxury building’s rental income.
BrickMark financed around 20% of the purchase by providing the seller, RFR Holding, a set of its newly minted digital tokens. RFR Holding has now acquired a stake in the building’s future income.
Stefan Rind, CEO at BrickMark, says,
“There has never been a token-financed transaction of this magnitude. We are implementing what was once no more than a concept in the real estate industry.”
The building is part of a larger real estate portfolio that’s worth an estimated $1 billion. BrickMark is currently in the process of acquiring a $55 million cash investment from professional investors and aims to finance future acquisitions with its digital tokens.
Featured Image: Shutterstock/berm_teerawat