Tokenized Shares Of UK Student Accommodation Block Sold By Smartlands
Smartlands, the security token platform, has announced that it has successfully closed the sale of security tokens meant to represent shares of a student accommodation block in Nottingham, UK.
Representing a milestone in security tokens within the real estate sector, Smartlands has just finished a deal for a property valued at £12.06 million in Sept, 2018.
The global platform for security tokens reached a private deal to purchase security tokens which represent beneficial interest in shares of a student accommodation block. The block, located in Nottingham, UK.
As per the deal, Smartlands tokenized 30% of Winrise One Limited, the company that owns the property. The shares were then sold to private investors. The company still retains 70% control of the property. The investment period for the tokenized shares will be for three years. Investors can expect to earn an annual return of 7.74%, paid quarterly over a three-year term.
The property consists of 124 studio apartments mainly for students. It is managed by CRM students, a national student accommodations manager.
Smart token advocates have long said that real estate and security tokens are a fitting match. This is because the housing market has often suffered from low liquidity, which tokenization could easily address. By all estimates, this idea seems to be catching on within the past year.