REITBZ, a security token offering (STO) backed by real estate in South America, is scheduled to close tomorrow (May 24). The STO is the creation of BTG Pactual, the largest private investment bank in South America with
This is the first security token backed by Brazilian real estate, to be managed by BTG Pactual, the largest investment bank in Latin America with billions in assets under management. The STO is the first for the firm.
The strategy of the token is to invest in undervalued real estate in South America. The $3 million soft cap was hit in April and as it stands today, the investor minimum has been dropped from $10,000 to just $500 USD.
Token holders may benefit from airdrop payments based on the performance of a portfolio of properties. It is expected that 50% of profits will be distributed as dividends and 50% will be reinvested in the portfolio.
While there is currently no secondary market for the tokens REITBZ intends to create a marketplace with strategic partners to provide.
The STO appears to be a long way off from their stated USD $15 million hard cap but a recent statement by REITBZ appears to indicate possible institutional participation.
“We have an encouraging pipeline with institutional investors, but it takes longer to convert than retail. About the investment, considering just what we have so far (3mm USD is around 12mm BRL), is more than enough to start building the portfolio in a diversified way.”
The website states: “We are now moving rapidly toward the hard cap goal.”
Real estate is frequently mentioned as a promising sector for tokenization as smart contracts may remove some of the intrinsic friction in the process. While perhaps more of an experiment than anything, it if works well expect future STOs from BTG Pactual as well as other online capital formation platforms.
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