Hong Kong-based Link REIT announced a partnership with blockchain startup Allinfra for asset tokenization. The two will begin with work on a solar power pilot for the tokenization of photovoltaic (PV) arrays installed on Link’s Hong Kong real estate assets.
The pilot solar project will involve the installation of PV arrays (PV Projects) on a portfolio of real estate assets in Hong Kong. Link REIT has a portfolio comprising retail facilities, car parks and offices across Hong Kong, Beijing, Shanghai, Guangzhou, and Shenzhen implementing a sustainable business model, and is seeking to be at the forefront of innovation in the development, financing and implementation of sustainable solutions.
Allinfra is a developer of blockchain-based solutions for the digitization of unlisted infrastructure and environmental assets, and is the exclusive technology partner for Link REIT’s pilot solar project, providing all technology and resources related to the digitization of PV arrays on selected rooftops in the Link REIT portfolio.
Asset tokenization had been explored by other businesses in the real estate industry. The factor that makes Link’s project different is the application of blockchain for creating a distributed energy resource (DERs). With tokenization of the solar project, blockchain can record the financial effect, ownership, and the associated environmental impact.
For Link REIT, the use of blockchain for a solar project supports the environmental, social, and governance (ESG) initiative of the company.
“Link REIT has an extensive and ambitious ESG program. We are exploring the potential of blockchain technology to develop innovative and robust ESG solutions in carbon reduction and data management,” said Calvin Lee Kwan, General Manager, Corporate Development & Strategy at Link REIT.
The Largest REIT in Asia
Link REIT is the largest real estate investment trust in Asia with a market cap of about $24 billion.
Link Real Estate Investment Trust is the first REIT listed on the Hong Kong Stock Exchange, and is a constituent of the Hang Seng Index. Link is the largest REIT and the only internally managed REIT in Asia, that is to say that they are one of the world’s largest retail-focused REITs based on market capitalisation.