La Estancia Holdings pioneers real estate STOs with US$75 million in Caribbean offerings over three phases

La Estancia Holdings is offering high-return investments with its curated portfolios of trophy residential properties at La Estancia Golf Resort in the Caribbean.


MIAMI, 27 AUG 2019 – Caribbean-based La Estancia Holdings is pioneering real estate-backed security token offerings (STOs) - also known as digital security offerings (DSOs) - with the launch of its ambitious roadmap of three offerings that total US$75 million, representing carefully curated and income-generating portfolios of trophy residential properties, and a new hotel in the Dominican Republic. 

“We’re breaking down the traditional barriers to real estate investment, and we see leveraging blockchain technology as the best way to make real estate investment more accessible to everyone, because of the transparency and automation it brings to fractional ownership and its promise of increased liquidity,” said Laurent Chemla, Head of Blockchain Strategy at La Estancia Holdings.  

La Estancia Holdings offers qualified investors the opportunity to own large or small fractional stakes in trophy real estate with attractive low-risk, high-return yields and the option to gain fast, inexpensive citizenship in the Dominican Republic; a benefit which features significant tax breaks and benefits on investment income. For conservative investors, there is also the option to invest in equity, which can later be converted to tokens without penalty.

Its first DSO, launched in July 2019, was of a US$10.7 million equity portfolio of 22 villas, townhouses, and cottages at the La Estancia Golf Resort in La Romana, the Dominican Republic. The properties represent a unique investment opportunity due to their long-term commercial lease that provides an annual yield of 8%, exceptional IRR, and the potential of digital securities offered to be listed on multiple exchanges to stimulate the liquidity premium.

The second DSO, planned for Q4 2019, will feature an equity portfolio of 123 residential units at the La Estancia Golf resort, worth more than US$20 million.

The Dominican Republic’s position as the leading economy in the Caribbean, attractive tax benefits and consistent influx of tourism result in an unprecedented amount of foreign investments, making it the top country for international investors seeking reliable returns and secondary residency opportunities.

The La Estancia Golf Resort grounds and surrounding areas, featuring secluded beaches and the Chavon river, continue to serve as pristine backdrops for TV and film productions. The government’s business incentives result in substantial long-term commercial lease contracts and continue to make media production one of the country’s primary revenue sources.

“We have invested over $100 million dollars in the Dominican Republic and have built a strong 12-year relationship with the government in the process. We are accelerating our infrastructure and lodging development in the La Estancia Golf Resort to take advantage of its unique commercial combination of filming locations, luxury accommodation, strong tourism, and proximity to international airports among other facilities,” said Armando Cignarale, CEO of La Estancia Holdings.

The third DSO, expected to launch early 2020, will be a new 240 room hotel development to be operated by a major international hotel chain and represents an equity and debt hybrid real estate investment with industry-leading yield potential. 

Bringing together the local expertise of a large and experienced US-based developer with La Estancia Holdings’ expertise in digital securities and Caribbean real estate, these three offerings provide investors with the opportunity to capitalize on digital efficiency, immutable security and increased liquidity, without having to change their familiar investment procedures.

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 About La Estancia Holdings: 

La Estancia Holdings is pioneering financial investments that offer fractional ownership of high-performance real estate assets in the Caribbean for global investors. It leverages blockchain technology via digital security offerings (DSOs) to streamline the investment process and to drive the liquidity premium for its investors. 

Media contact: 

Hannah Ballard

hannah@yapglobal.com

Allan Wright