UPRETS has been working hard on the tokenization of The Oosten property in Williamsburg, Brooklyn. Funded by Xinyuan Real Estate Co., UPRETS is a digital security issuance platform with a focus on transforming the global asset market. This luxury development project features 216 units and is Xinyuan Real Estate Co., Ltd ’s first project in New York City. The project features 1, 2 and 3-bedroom units.
The Oosten condominium project was designed by Piet Boon, a renowned Dutch architect, and caters to all the needs of a prospective home-seeker through its variety of units. The project can be described as a blend of modern architecture and lush amenities to take luxury living in New York City to a new level.
Digital security offerings are slowly starting to take shape as the leading investment vehicle of the future. Digital securities aim to make working with various regulators and creating an ecosystem easier. On the other hand, ICOs were striving to cut away regulations, and that is why many projects failed as there was no regulatory framework to guide these companies. Real estate for a long time has been viewed as a safe haven for the wealthy. This is about to change with the tokenization of real estate projects, such as the Oosten property which will open up the real estate market to new investors.
“The global asset market is ready for a revolution through tokenization. Many people wish to be a part of this market, but the barriers to entry have been a major concern. Liquidity issues and the presence of many intermediaries make the process of trading securities not only tiresome but also time-consuming,” said the UPRETS Team.
The private assets market is known for being illiquid. The Security Token Academy notes that tokenizing these assets will make them liquid and also open up new opportunities. Global real estate assets have a valuation of about $230 trillion. Commercial properties are worth about $32 trillion, while residential real estate is valued at $180 trillion with agricultural activities constituting the remainder. Other securities that will benefit from tokenization include debt and equity which are also illiquid in the private markets.
“UPRETS intends to lead the rest in the real estate sector through this Oosten project. We want to open up real estate investments to everyone through blockchain technology. The future of blockchain is now. We have now moved from speculating what blockchain technology can do to actual usage”. — UPRETS Team
The securities in issuance are shares of the real estate fund, which will, in turn, be represented by a token. These shares will be offered privately at the set subscription price to the various accredited investors. All accepted subscribers will then be admitted to this fund as token-holders or shareholders.
The secondary digital securities market is a concern of potential investors. There have been major strides in this area with the introduction of regulated exchanges, such as OpenFinance. Such exchanges charge a listing fee for digital securities and they must do thorough due diligence on the viability of the digital securities in question. UPRETS is going to work with a public market to list the shares that will be sold to various subscribers. The transfer of shares will initially be regulated by the Fund.
Even though tokenization of a real estate property makes it possible to have fractional ownership, it is not the only reason to tokenize an asset. The aim of UPRETS is not limited to The Oosten property, the company will tokenize other real estate globally in cities such as Dubai, London, and Singapore. Tokenization is to democratize the investing process for global investors. The approach will cut down on the number of intermediaries to involve and the fees associated with the investment process. Cutting down intermediaries makes it lucrative for a property owner to sell because the property will fetch a higher price when the token becomes liquid with fewer people to pay in the chain.
For more information, please visit uprets.io.