Tokenization fever seems to be taking over the world right now. Various companies are nowadays taking interest in this revolutionary new trend for different purposes, and the latest company to join that club is Uavend Property and Leisure of UK.
Uavend is a real-estate development and investment house based in Hertfordshire, and the company just announced that it’s tokenizing one of its Special Purpose Vehicles (SPV) by utilizing the proprietary technology of German blockchain company Brickblock Digital Services GmbH. The company has partnered with Brickblock subsidiary ScalingFunds for this purpose, and clearly, this is another evidence of the rapidly growing tokenization trend in the UK.
The property whose SPV Uavend wants to tokenize is a €35 million luxury residential building located in Southwest England. It’s set to open sometime in the Summers of 2019. By tokenizing the shares of this property’s SPV what Uavend wants to achieve is more efficiency in its financial holdings. Here’s what company’s CEO Eamon O’Connor said regarding the partnership:
“Incorporating ScalingFunds’ state-of-the-art technology allows us to more efficiently structure our financial holdings. This complements the innovative approach we take in real estate construction and development. Our project represents the first of what we expect to be many partnerships with ScalingFunds to explore new financing mechanisms.”
Tokenization is a process that entitles the shareholders of any particular investment vehicle to receive their share of benefits from the underlying asset. In this case, the underlying asset is a real-estate property, and the benefits that can be shared by the shareholders may include rent, interest on rent, distribution of principal value upon selling the property, and on. It’s similar to a share certificate, but much better and reliable due to the properties of blockchain technology.
Here’s what Jakob Drzazga, the Founder and CEO of Brickblock, said about his company’s partnership with Uavend:
“Tokenising this U.K. property is a great milestone not only for ScalingFunds but for the entire real estate and blockchain industries in Europe. We are increasingly working with institutional clients who are excited about the possibilities of using blockchain technology as a decentralised, secure, and immutable registry. We look forward to more projects with Uavend in the future.”
It will be interesting to see which other industries adopt tokenization next to improve efficiency and reliability.