Germany-based Black Manta Capital Partners has introduced a $12 million security token offering (STO) for the Berlin real estate market.
The initiative is reportedly a collaboration with Tigris Immobilien, a German real estate company. Approximately 2000 sq meters of real estate property, which mainly consists of individual small apartments units (40 to 60 sq meters each) are being offered by the project.
Construction is scheduled to be completed within the next two years. The units may be sold to owner-occupiers and qualified investors.
Token holders will have securitized participation rights and will be able to earn 20% of all profits made via the sale.
The firm noted that the tokens will allow ordinary investors to take part in “a profitable real estate project” that’s usually only offered to professional or accredited investors.
Those who are interested in purchasing the project’s tokens must invest at least €500 (appr. $550) and up to €2 million (appr. $2.2 million).
Christian Platzer, co-founder and managing partner at Black Manta, said that STOs offer several benefits or advantages over traditional property investments.
STOs have become popular because they help lower transaction costs and are more tradable than regular forms of real estate investments. It’s also easier to transfer tokenized real estate from one person to another. In most cases, investors can participate in STOs without having to work with a notary.
The STO is regulated by Germany’s financial regulator BaFin, the European nation’s Federal Financial Supervisory Authority.
This particular offering is only available to German and Austrian investors because of certain capital market requirements and regulations. The company said it’s planning to offer other STOs in the European Union.
Black Manta’s management is expecting more STOs will want to conduct their sales through its platform. The firm supports offerings from various firms selling securities, SMEs, and various funds.
Institutional investors usually prefer to invest in regulated financial instruments. They’re also looking for reliable custody services for blockchain-based tokenized assets.
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