Paris Based AnnA Villa Creates History, Becomes First European Property To Be Sold On Blockchain Entirely
Paris based AnnA Villa became the first European property deal to be completely sold using Blockchain.
It is a luxury villa located in the district of Boulogne-Billancourt and estimated to be worth of 6.5 million Euros. The villa was sold to two French real-estate businesses namely Sapeb Immobilier and Valorcim.
How Blockchain Was Used For the Deal?
Blockchain was used to tokenize the value of the villa and converted into 100 tokens and then distributed to the owners respectively. The ownership of the building was transferred to a joint-stock company called SAPEB AnnA. Each of the 100 tokens can be further divided into 100,000 units, thus anyone with 6.50 euros can buy a share of the luxury villa.
The blockchain service was provided by the French firm Equisafe, known for their blockchain investment platform. The tokens were based on Ethereum protocol, and it was the latest of many attempts for bringing real-estate onto the blockchain.
Although it was the first blockchain based deal in Europe, there have been several use cases of tokenization and blockchain in the real estate business. Last year $30 million worth of Manhattan properties were tokenized using Ethereum tokens, similarly in January this year Colorado based luxury resort raised in excess of $18 million through a security token offering.
Real-Estate business is always touted as an industry which can make the most through the ongoing trend of tokenization as there is very low liquidity and high entry barriers in the market making it difficult for everyone to make such big investments.
With tokenization into the picture, each property can be divided into numerous small shares which anyone can invest in and trade on exchanges like any other form of security.