UK Sotheby’s International Realty and blockchain-based digital securities issuance platform Smartlands (SLT) have released further details of their collaboration to tokenise shares in a pilot project for a newly-built duplex apartment at Lillie Square in London. The property, priced at £1,819,000, is expected to be completed by the end of Q1 2020 and will be managed by UK Sotheby’s.
The details of the securities token offering (STO) in relation to the property are expected to be announced once the internal fit-out of the apartment is finalised.
Founded in 2017, Smartlands are working towards issuing securities for a range of asset classes from real estate to art or farm holdings to equity in a privately owned company. The aim being to widen the customer base for often illiquid assets by reducing the entry level for investment.
Tokenised real estate is thought to provide an opportunity for investors to engage in the property market without the need of direct ownership or dealing with real estate investment trusts (REITs) or mortgage-backed securities.
In May last year, the company launched their first STO using the Stellar blockchain for student accommodation in Nottingham. In that deal, the public offering had a minimum contribution threshold of £500.
In partnering with the UK Sotheby’s International Realty – who are a subsidiary of the Sotheby’s Auction House – Smartlands have now added residential luxury real estate to their portfolio.
Interest in blockchain-focused property projects continues to climb in the U.K., with aspects of construction management and sales, as well as real estate conveyancing and registration undergoing various commercial and governmental trials.
The Smartlands (SLT) token is only available on Stellar-based exchanges with Stellar (XLM) pairings and is currently trading in low volume at around $0.38.