Silicon Luxembourg has reported that the first real estate transaction using blockchain technology has just been completed in Luxembourg.
This new type of investment should disrupt a booming market and attract new individual investors willing to invest in bricks and mortar.
At the helm of this real estate first are Bernard and Laurent Olmedo, directors of Creahaus, as well as Michael and Frédéric Reichling, directors of Espace Invest: these two key players in the Grand Duchy’s real estate landscape co-founded Property Token S.A. and successfully launched the first Luxembourg real estate token issue.
To carry out this first transaction, the two developers and builders called on the expertise of Tokeny – which made its token emission technology available – and CoinPlus – which provided the “zeroelectronic” physical vault where the tokens issued are securely stored; not forgetting the architect of this solution, the strategy and innovation consulting firm INNO led by Wesley Deglise.
With the support of renowned business consultant and legal and tax advisors, this innovative “digital securitisation” process enabled a club of private investors to buy and hold tokens, i.e. a digital representation, registered on the Ethereum blockchain, of the rights relating to a luxury building located in the Grand Duchy, in Belval. Belval is the new trendy Luxembourg address that offers a unique mix of work, housing and daily life. In Belval, the economy meets science, cutting-edge research meets entrepreneurship, and today the real estate sector meets blockchain...
In the coming months, subject to obtaining the necessary regulatory approvals and in strict compliance with applicable laws, the next property token issue will be open to the public. The future real estate project to be tokenised by Property Token has already been selected by the founders. This will be a “premium” project that will be unveiled and disclosed to the public before year-end.
For each real estate project that will be tokenised in the future, the tokens will be issued by a Luxembourg securitisation vehicle in accordance with the law of 22 March 2004, via a dedicated compartment.