UPRETS has been working hard on tokenizing a limited number of condominium units at The Oosten property in Williamsburg, Brooklyn. Funded by Xinyuan Real Estate, UPRETS is a new digital security issuance platform with a focus on the global real estate market. This luxury development project features 216 units and was Xinyuan Real Estate’s first completed project in New York City. The Oosten 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 gain acceptance and are expected to be a significant feature in world markets in the future. Real estate, as an investment asset, for a long time has been viewed as a safe haven largely for the wealthy. This is about to change with the tokenization of real estate projects, which should ultimately make it easier for investors of all types to participate in the real estate market.
“The real estate 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 UPRETS Team.
The private assets market is known for being illiquid. The Security Token Academy notes that tokenizing these assets will assist in making more of these assets liquid. According to research from the London-based real estate advisor Savills (SVLPF), 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 assets that may benefit from tokenization include non-listed debt and equity securities.
“UPRETS intends to be a leader in applying token technology to the real estate sector. 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 secondary digital securities market is a concern of potential investors in token transactions. 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.
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 UPRETS team believes that tokenization is a way to democratize the investing process for global investors. The token approach should reduce on the number of intermediaries involved to participate in an asset and the fees associated with the investment process. Reducing the number of intermediaries should makes it more lucrative for a property owner to sell their asset because the property should bring a higher price when the token becomes liquid with fewer people to pay in the chain.
“UPRETS” is the brand name of the blockchain platform technology services being developed and offered by entities affiliated with Xinyuan Real Estate Co., Ltd., a China based property developer. The blockchain platform technology and associated services are offered pursuant to contract by REFINTECHCO, a Cayman Islands company affiliated with Xinyuan. REFINTECHCO licenses this blockchain technology, on a non-exclusive basis from Beijing RXZT Technology Development Co. Ltd., a company organized under the laws of the Peoples Republic of China and also affiliated with Xinyuan.