One of German’s leading real estate giants, Bauwens, has decided to take a long-term stake in the future of property development investment being tokenized. Announcing the news this morning (Oct 9, 2019), the real estate company disclosed that it had acquired a 15 percent stake in shares in Fundament in cash.
Fundament is a blockchain-based securities company that has links with German properties and is built on the Ethereum (ETH) technology. According to Fundament Chief Executive Officer, Thomas Ermel, Bauwens agreed to buy 15 percent of the company’s shares in cash in September after it began talks for a partnership in May.
Founded in 2017, the German-based blockchain company, Fundament Group, offers security tokens on Ethereum’s blockchain platform to raise monies to advance the property estate industry.
In July, the security token company received approval from the German Financial regulatory body BaFin to go ahead with its first virtualized real estate bond that is believed to have an issue volume of about 274 million US dollars.
At present, the security token company is prepping for its upcoming 280 US dollar real estate share token sale that was to be held on 8th October 2019 for both retail and corporate investors.
The partnership between the two significant companies is crucial as they both play a vital role in their respective jurisdictions. For Bauwens’, German’s leading real estate giant, the company has an impressive development portfolio that includes some of the country’s significant commercial and residential properties that are said to be more than 7.3 billion US dollars in worth.
The strategic partnership between Bauwens and Fundament is poised to position the blockchain-based security token firm on a vantage point that will see the firm gain access to a development channel in the country’s key urban areas that include Berlin, Munich, Frankfurt, and Hamburg. Similarly, by partnering and investing in Fundament, Bauwens is positioning itself to grow more in the innovative new space of tokenized real estate investments.
According to the Managing Director of Bauwens Digital GmbH, Alex Jacobi:
“After months of deliberation and anticipation, Bauwens is pleased to announce to the world the partnership with Fundament Group. We want to make it known that Fundament Real Estate Token is an extremely thought-provoking option for selling our properties, and we are glad to offer them our real estate and digitization support. By partnering with the blockchain-based company, Bauwens is strategically placing itself in the emerging real estate tokenization market.”
Fundament Group is availing real estate investment opportunities to corporate and retail investors while breaking down the barriers that previously restricted asset classes.
Although the partnership is now signed and sealed, not every project at Bauwens meets the investment criteria of Fundament.
According to the CEO of the blockchain company Fundament, Ermel,
“We will choose the most suitable real estate projects in our sphere for our portfolio.”
On the other hand, the co-founder of Fundament and policy advisor of the German government, Robin Matzke, believes Bauwens has availed access to a wide assortment of real estate projects. Day-care facilities, common work areas, and hotels are some of the real estate projects available for Fundament through the partnership.
Why the Partnership is Game Changer
The parties involved in the partnership are significant companies on their right in their respective domains.
Apart from being one of the oldest and largest real estate company, Bauwens is one of the few companies that has an impressive portfolio that cuts across both residential and commercial properties.
According to Fundament’s CEO, Ermel, who also has over a decade of experience working with property investments, blockchain technology has the potential to revolutionize an industry that has long suffered from issues of structural trades.
The main benefit the market is poised to experience from blockchain technology is the removal of barriers that make investing and trading cumbersome.
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