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Technical paper
15
.
04
.
2021

Blockchain technology for real estate investments: digital, secure and simple

Blockchain and cryptocurrency are making their way into the real estate industry: we too are now using blockchain technology with LINUS, enabling our investors to close their co-investment on the Ethereum blockchain via a tokenized trust.

The financed project is the prestigious Access Tower in Frankfurt, a property of PREOS Global Office Real Estate & Technology AG. With this pilot project, we are testing the acceptance of blockchain technology among our co-investors to find out what opportunities arise for LINUS and our co-investors from the digitalisation of the financial market. The focus here is primarily on the acceleration and simplification of processes as well as the tradability of investments on the digital LINUS co-investment platform.

Support from recognized experts in the industry

In order to guarantee our investors the quality and security they have come to expect, we are being supported in this pilot project by recognised experts in the industry: For the technical implementation, we have teamed up with micobo GmbH and Upvest GmbH, two leading providers in their field.

Legal support for the project is provided by the internationally recognized law firm Greenberg Traurig Germany, LLP and the law firm Katzorke Rechtsanwaltsgesellschaft, which specializes in blockchain and token products.

Tokenization: Already existing investment structure is mapped with the help of crypto tokens

With tokenization, the contractual structure between co-investors and LINUS is digitally recorded by the blockchain. In the investor's digital wallet, there are transferable tokens of equal value according to his investment, which map rights and obligations via smart contracts. These are smart contracts that are based on software and automatically adapt to the fulfillment or modification of contractual services. For example, if the value or function of a token changes, the smart contract changes.

The process of tokenization brings several benefits in the long run:  

  1. The blockchain process makes the transactions particularly secure.
  2. The transactions are comparatively simple and efficient.
  3. You have the opportunity to sell your assets comparatively quickly.  

Blockchain method protects tokens from manipulation

Blockchain technology makes investing via tokens particularly secure: the chain of individual data blocks (tokens) is stored in a decentralised manner, via a network of thousands of computers. Each transaction must be checked for authenticity and validity by the entire network via a network of servers.

If a new data record is inserted, this transaction must be verified and released by everyone - however, this does not mean that the data of the respective token can be viewed, only the validity of the transaction is checked. Only then can this new block be appended to the chain. This form of decentralized verification makes manipulation by individuals impossible.

Simple, fast processes

Through tokenization, your investments can be managed directly via the corresponding platforms in the future: Intermediaries such as banks are then no longer necessary. The acquisition of financing shares or trading with them thus becomes more streamlined in the process overall. Investors thus gain maximum control and transparency. In the long term, the more efficient processes will enable cost savings.  

Semi-liquid structures

The fact that there are no intermediaries such as banks when acquiring tokens also makes the resale of your tokens comparatively simple: If you want to resell your financing tokens before the financing expires, there is no need for intermediaries here either: You can simply transfer the tokens via the trading platform to another person who has been approved for this purpose.  

Your investment in real estate financing thus becomes a semi-liquid investment in the long term: If you make token-based investments the basis of your portfolio, you will have the opportunity to sell your assets again comparatively quickly in the future.

How to acquire financing tokens with LINUS

Are you interested in investing in Access Tower Frankfurt via financing tokens? This is how it works:

  1. As a co-investor, you register your interest in investing as usual.
  1. Your personal LINUS contact will approach you and start the investment process with you.
  1. You will receive a digital questionnaire for investors and verify your identity.
  1. Next, you will be sent a link to the digital registration process.
  1. In a guided process, your digital wallet is created. You create your password and receive a security code.
  1. You can now sign the contract digitally and will be asked to pay.
  1. Once the money is received, the tokens are transferred to your digital wallet and the investment is complete.

You can view and access your digital wallet at any time via your personal access on the LINUS platform.

Purchase financing tokens for the Access Tower Frankfurt now

You would like to complement your portfolio with tokens for the Access Tower Frankfurt? Our investment experts will be happy to inform you without obligation.

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