ReitBZ, part of BTG Pactual, has announced that it has hit its USD $3 million “soft cap” goal. ReitBZ has set a hard cap of USD $15 million.
ReitBZ is a security token offering based on real estate assets. More specifically, distressed real estate assets due to current high inventory levels and real estate developers´ need to monetize their assets across South America.
BTG Pactual is no small entity. Created in 1983 and founded in Rio de Janeiro as a brokerage, BTG Pactual has grown to become the leading investment bank in Latin America. In 2012, BTG Pactual completed an initial public offering raising R$3.65 billion and making the company one of the 20 largest listed companies on the BM&FBovespa. For the fiscal year 2018, BTG Pactual generated top-line revenue of R$5.352bn (USD $1.36 billion)
Additionally, BTG Pactual is the largest real estate manager in Brazil and operates across Latin America. Currently, the company reports USD $ 2 billion in Assets Under Management in the real estate sector.
Given the size of the BTG Pactual the ReitBZ security token may seem small but the company explains:
“The size was chosen to optimize distribution efforts and potential returns for investors. Since it is a portfolio of distressed real estate assets, with lower liquidity and greater sensitivity to economic activity, we opted for a size that guarantees the best possible selection for token holders.”
Regarding regulation, vital for any security issuance, ReitBZ says they are in constant discussion with regulators (CVM) on how to use new technologies to make capital markets more efficient.
“In the case of digital assets, we believe CVM and other regulators understand the subject well and are pro-innovation, provided this is done safely and generates gains for the market and for the country as a whole.”
BTG will also custody the tokens thus removing that hurdle.
Will ReitBZ be tradable? Not at first, according to the company – but perhaps in the future. Management is reviewing options now and states that the plan is to list the digital asset as soon as an exchange emerges that can list the security token while being compliant to the standards they expect.
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