Black Manta Capital Partners based in Germany has launched a security token offering (STO) for Berlin real estate worth more than $12 million. The project is jointly being carried out with Tigirs Immobilien realestate firm. The project includes 2000 square meters of real estate, in the form of apartments and will be completed in 2022.
Accoring to the project information token holders will share 20% of the sale profits through securitized participation rights. The company said the tokens will enable ordinary investors “to participate in a profitable real estate project normally reserved for professional investors.” The minimum investment is just 500 euros. People interested in acquiring tokens can invest a minimum of €500 (nearly $550) up to a maximum of nearly €2 million (around $2.2 million). Black Manta co-founder and managing partner Christian Platzer told Cointelegraph that STOs have a number of advantages over traditional real estate investments, including, “Lower transaction costs, transferability, tradability. You can invest in real estate today, without going to a notary.”
Black Manta said that more STOs will be carried out on its platform this year. The firm reportedly already plans offerings of startup securities, small-medium enterprises and funds.
Looking to the future, Platzer expects a new “tokenization services” industry to emerge and the crypto custodian market to grow. He explained that institutional investors require regulated custodians, “Especially institutional investors have waited for regulated services to help them with the custody of tokenized assets. In the long run, regulated custody will bring the liquidity of bigger players to a market that is still niche, but growing up.”