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$75M STO to Be Held by Caribbean Real Estate Company
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La Estancia Holdings will be selling $75M worth of tokens in a security token offering. The STO will be held in three phases until early 2020.
A real estate company in the Caribbean will soon be holding its own STO in an effort to break down financial barriers. In what is one of the highest-profile security token offerings in the region to date, the real estate company is making some big promises.
Aiming to reach $75M, investors will get a chance to earn a piece of the company’s portfolio by holding its security token. These include villas, townhomes, and cottages at the La Estancia Gold Report in the Dominican Republic. Additionally, 123 resident units at the same report will also be represented in the tokenized portfolio.
The company is also hinting to investors that a 240-room hotel complex will be managed by a ‘major international hotel china’ and also be represented in the fund. The company claims that, while there is always risk, “in the context of comparable opportunities, La Estancia Holdings presents relative low-risk and targets high-returns.”
As Laurent Chemla, head of La Estancia’s blockchain strategy, said in a statement:
“We’re breaking down the traditional barriers to real estate investment… [W]e see leveraging blockchain technology as the best way to make real estate investment more accessible to everyone because of the transparency and automation it brings to fractional ownership and its promise of increased liquidity.”
La Estancia argues that the Dominican Republic is the ‘most stable’ location for real estate in the region. However, it’s unclear how long the current tourism and real estate boom will continue. Still, this is a consideration STO participants will have to make before putting their money into La Estancia’s ambitious STO.
Do you believe that real estate remains the best frontier for the nascent security token industry? Let us know your thoughts below in the comments.
Image courtesy of TripAdvisor.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
