Property Investment Solution to launch IEO on ProBit

An internal source told UNLOCK the following: Instant Assets Tokens (IAT), is set to launch their initial exchange offering (IEO) through ProBit Exchange. Managed by Singapore-based Zenith Peak Ltd, the project will look to tokenize real-estate assets, enabling developers and property buyers to utilize blockchain features such as smart contracts. Funds raised from its IEO will be utilized to expand an existing portfolio of properties to be listed on its platform in the Philippines, allowing token holders a wider pool of property assets to invest in.

The announcement of IAT’s launch comes on the back of increasing global interest for the booming property markets in developing nations, as it looks to address the predominant issues faced by property investors and developers in the Philippines. Through the use of blockchain technology and features such as smart contracts, the project aims to introduce enhanced transparency and reduce restrictions on foreign ownership and cumbersome administrative procedures.

Sharing more on IAT’s roadmap, Bryan Chiew said, “The launch of the IEO will allow IAT to focus on acquiring both commercial and residential properties within key development areas and Central Business Districts (CBDs) in the Philippines. In addition, we are also looking to expand into other attractive Southeast Asian markets such as Cambodia, Vietnam and Thailand.”

Boasting the highest gross yields for property investments in Asia, Philippines is fast becoming one of the most attractive locations for foreign investors. The property boom has in part, been attributed to an increase in demand for office and residential space due to the growth of offshore gaming operators, as well as Business Process Outsourcing (BPO) companies. Despite its attractive proposition, investors have yet been unable to take advantage of the property boom due to various limitations. These include, a tedious manual registration procedure, and the lack of transparency in payment. In addition, international property buyers face an absence of mortgage opportunities, higher upfront charges and taxes, as well as a clear lack of ownership transfers – often leading to ownership disputes between buyer and sellers.

IAT’s proposed solution will utilize blockchain technology to bridge the gaps in the current real estate market in the Philippines. By maintaining a uniform source of information, the current months-long registration and document verification process could be reduced to a fraction. IAT will also look to ease restriction on foreign ownership through the digitization of assets, while utilizing blockchain’s immutable nature to ensure the transparency of transactions, minimizing the potential for ownership disputes.

Developed on the Ethereum network and the ERC20 protocol, IA tokens will allow property buyers to set smart contracts to facilitate their purchases, ensuring the security of their transactions, and replacing the need for hefty legal and administrative fees. Bryan adds “The IAT platform can potentially halve the total transactional cost in the traditional real estate industry, which can sometimes inflate to as high as 24% of the property’s value. Its proposed structure increases integrity and security for investors – creating an ecosystem that saves both time and money.”

All properties pegged to the IAT project will be managed by Philippine-based property management asset company, Realty Beacon Philippines Inc, (RBPI). The real estate management firm will be providing asset management services for property owners, in which the use of IA Tokens will be encouraged. In addition to the purchase and sale of properties, IAT will look to introduce partner merchants with relevant services to property owners and investors. Users of the platform can also use the tokens to pay rent, tax advisory and services, furnishing and legal services.

In addition, the tokenization of property assets will also lower the barrier to entry, with investors able to opt between full or partial ownership of a property for investment. Property developers, agents and landlords can also utilize the tokens for their leasing activities. The integrated multi-channel platform ensures that the IA Tokens maintain high liquidity.