Peakside Capital Launches a Blockchain Real Estate Investment Fund Targeting German Market
- Investment manager is planning to raise €200 million through blockchain-based platform.
- The initiative is focused around real estate properties based in Germany.
€200 million to Be Raised Via Blockchain-enabled Platform
Peakside Capital Advisors, European investment manager, has started a real estate fund to raise €200 million using its blockchain platform targeting the German market, a press release on June 12 from the company revealed.
The European investment manager has launched the core and core-plus Peakside Income Fund I vehicle on ScalingFunds platform.
Cointelegraph reports that the fund, which will focus on office properties across first and second-tier cities in Germany, will target asset sizes in the range of €15m and €75m, with a maximum leverage of 50 percent.
The investment platform has been created through a partnership with Berlin-based company Brickblock Digital Services. Bricklock runs a ScalingFunds which is an investment network which is based on blockchain technology. In early March this year, the blockchain based startup tokenized its inaugural property in Germany.
In the press release, Stefan Aumann, the founding partner at Peakside Capital Advisors, said that the company hopes to take advantage of the recent developments in digital technology to enhance liquidity as well as transferability of assets in the property industry in efforts to attract more investors. He explained:
“We can now offer our institutional-quality investment products at smaller minimum investment sizes to qualified investors who would otherwise not have the opportunity to invest with us. On top, we strongly believe the underlying blockchain technology provides additional investor security.”
The fund shares will be recorded using blockchain by Peakside Income Fund 1. The company has contracted SANNE, renowned worldwide for provision of unconventional asset and company administration services, to store the share information offline.
Widening the Investor Base
Brickblock CEO Jakob Drzazga explained that tokenization of real estate will give an opportunity to many people with little money that cannot buy an entire house a chance to purchase a portion of a property. He explained that once an individual buys a portion, they will be eligible to earn dividends from the rental income as well as interest and capital distribution.
Drzazga said that the new developments give real estate investors more opportunities to trade in security markets apart from reits.
“The ability to trade fund shares almost instantly creates a new segment between open-end and closed-end funds,”
The recent deal is the latest to materialize from Deutschland in the recent past, as private enterprises and government agencies are briskly catching on the huge potential presented by blockchain technology.
Last month, Germany’s national telecommunications company, Deutsche Telekom, revealed that it had partnered with Fetch.ai to develop an Internet of Things project. Fetch is a blockchain based startup that is currency listed in Binance crypto exchange.
The Peakside investment project is open to investors around the world, including institutions. Although the current fund is limited to secondary cities in Germany, Peakside has announced its intention of rolling out the system across the CEE region, including to Poland.
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