Blockchain firm Fundament has landed German real estate giant Bauwens as a strategic investor to jump start its asset tokenization business.
Fundament is selling the tokenized real estate securities backed by a portfolio of properties. The idea is to trade real estate-backed securities without any intermediaries such as investment firms, brokers, or transfer agents. Their token runs on a public Ethereum blockchain using the ERC-20 standard.
For institutional investors, Fundament physically hands out a hardware storage device with the security token stored on it. Retail investors can visit the company’s website to buy a real estate token which can be transferred to their digital wallet. Investors can make payment in either in cryptocurrencies or fiat money.
The Big Real Deal
Bauwens is one of Germany’s oldest and largest real estate developers. The company is known for integrating intelligent and digital technologies into the development and realization of its real estate portfolio. It has a portfolio size of €6.7 billion ($7.35 billion) comprising of both residential and commercial properties and has over 370 employees.
Fundament will have access to a development pipeline in the country’s key metropolitan areas, including Berlin.
Bauwens acquired 15 percent shares of Fundament. Fundament’s €250 million real estate bond token sale opens for both institutional and retail investors on Oct.8.
“We are delighted to announce this partnership with Fundament Group which recently achieved a decisive breakthrough in Germany by securing the first regulated tokenized real estate bond.”
The venture capital arm of Bauwens has already been involved with 40 tech firms in the real estate.
Mid to Long Term Investment
Fundament strategize on a mid-to-long term investment approach for commercial real estate in seven major metropolitan regions in Germany.
Fundament co-founder Robin Matzke, a policy advisor to the German government, said Bauwens provides access to a wide range of real estate projects, including the in-demand sub-sectors of hotels, day care facilities to co-working spaces.
The current portfolio being tokenized includes residential, commercial and hotel properties, totalling more than 680,000 square feet upon completion.