London Chelsea Limited, a UK investment company, has announced it is partnering with SolidBlock, a digital securities issuance and trading platform, to raise financing for London Digital Bond, a new property fund that invests in prime residential real estate.
“This is the first time a single-family fund will be financed through blockchain-based securities,” said Yael Tamar, co-founder of SolidBlock.
“We are creating a digital age financial instrument that provides the stability and upside potential of prime London residential properties, combined with the flexibility of trading on a top digital securities platform.”
SolidBlock will begin its global fundraising on July 1st for London Digital Bond by issuing digital security tokens, which are tradable assets that can be bought and sold exactly like conventional securities.
The offering will be available to global investors starting from £10,000.
“Cross-border residential real-estate investment is marked by inaccessibility and inflexibility,” said Ramon Vega, head of investments at London Chelsea.
“Today’s investors don’t want their money locked in, and they need more choice in terms of which properties they wish to invest in.
Blockchain-based securities enable exactly that, and we believe they will have a significant impact on our industry.”
While this is SolidBlock’s first tokenised project in the UK, the company says it has already disrupted the U.S. real estate industry by tokenising the St. Regis Resort in Aspen, Colorado.
The prestigious hotel raised $18 million and was the first commercial property in the world financed by blockchain-based securities.
“More recently, one of the side effects of the Covid-19 pandemic has been the onset of digital transformation in a variety of traditional industries such as real estate, and London Chelsea together with SolidBlock is leading this trend in the UK,” Tamar said.