Fundament and Bauwens to Bring Security Tokens to $7 Billion Worth of Real Estate
As of October 9th 2019, Fundament has announced a strategic investment from real estate giant Bauwens. According to the two, the deal will result in billions of dollars’ worth of real estate tokenized across Germany.
Fundament and Bauwens to Tokenize Real Estate in Germany Explained
Fundament is a Germany-based end-to-end platform designed to issue security tokens on Ethereum.
Earlier this year, Fundament received regulatory approval from BaFin to distribute the country’s first blockchain-based real estate bond— with an issued volume of €250 million.
Now, Fundament has worked out a deal with German real estate giant Bauwens, which has more than $7 billion worth of properties in its pipeline.
Bauwens is now a strategic investor in Fundament, after acquiring a 15% stake.
As one of the top three real estate developers in Germany, Bauwens has a massive pipeline of of both residential and commercial real estate, ready for tokenization.
Not all of it will be tokenized however, according to Fundament CEO Thomas Ermel.
“We will select the most suitable projects out of the pipeline for our portfolio.”
He added that his firm’s strategy entails a mid-to-long term investment approach for various properties across Germany.
The portfolio to be tokenized features residential, commercial, and hotel properties. Upon completion, it will comprise more than 680,000 square feet.
“The venture capital arm of Bauwens is already involved with 40 tech firms in the real estate space. That is one of the reasons why they were very interested in tokenized real estate bonds.”
Alexander Jacobi, Managing Director of Bauwens digital GmbH added,
“We are delighted to announce this partnership with Fundament Group which recently achieved a decisive breakthrough in Germany by securing the first regulated tokenized real estate bond. The Fundament Real Estate Token is an extremely interesting option for selling our real estate and we are proud to support them with our real estate and digitization expertise. By partnering with Fundament Group, Bauwens is positioning itself sustainably in the emerging real estate tokenization market.”
Germany is continuing to progress with security tokens, as its securities watchdog BaFin has approved numerous requests in the security token space.
In August 2019, Black Manta Capital Partners received regulatory approval to launch a Security Token Offering (STO) service.
Earlier, in February, BitBond received the green light to offer tokenized bonds.
In late 2018, Neufund raised €3 million through a BaFin-approved STO.
What do you think about Fundament partnering with Bauwens? Let us know what you think in the comments section below.
Image courtesy of Fundament.