tZERO, a subsidiary of Overstock (NASDAQ:OSTK) and a prominent digital securities platform, will tokenize a 180-unit luxury residential development that is located in Manchester, UK. The tokenization is being completed in partnership with Alliance Investments, a UK-based direct-to-developer real estate investment company. River Plaza claims to be the UK’s first real estate-backed security token offering (STO) and the first project of Alliance Investments’ real estate tokenization plan to tokenize approximately $640 million of real estate projects across the UK over the next several years. The STO is expected to launch in Q1 of 2020.
Alliance Investments’ real estate tokenization plan is to tokenize approximately $640 million of real estate projects over the next several years.
The security token offering will see the issuance of at least $25 million in value tied to the River Plaza. The STO will be digitized using tZERO’s tokenization technology and Megalodon’s advisory services and issued on the Tezos Blockchain. According to the company, the security tokens will provide investors with liquidity through tZERO’s secondary trading technology, which powers the alternative trading system operated by PRO Securities, a subsidiary of tZERO.
tZERO CEO Saum Noursalehi said they believe asset tokenization will “revolutionize the real estate sector.”
“We applaud Alliance Investments for spearheading one of the world’s first real estate-backed security token offerings. Tokenization of real estate will democratize access and greatly enhance liquidity for this asset class,” said Noursalehi.
Alliance Investments CIO Rani Zahr said they view tZERO as a leader in the digital asset sector and in providing asset tokenization solutions.
“[We] are excited to partner with them on our first STO,” said Zahr. “We strive to stay ahead of the innovation curve and believe that security token offerings are the future. They are more efficient, cost-effective, autonomous and democratic in comparison to traditional financing. We hope to continue to collaborate with tZERO to see out our real estate tokenization plan.”
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