INTRODUCTION.
Today I’ll be writing about a Blockchain company project that is set to infuse Blockchain technology into Real Estate Investment Trust(REIT) with the primary aim to avail everyone the opportunity to enjoy economic benefits(dividends) of a Real estate anywhere in the world without leaving the comfort of their homes.The GLOBAL REIT Blockchain company,is the first sharia-compliant REIT on blockchain.For starters a REIT is a company that either owns or finances real estate or properties,these properties such as apartments, office complexes, parking lot, or full business outlets are referred to as ASSETS UNDER MANAGEMENT(AUM). They lease and/or sell properties and generate revenue from rents and interest paid on mortgage. REITs are mandated by law to share 90% of their profits to all investors while they retain 10%.Statutory requirements for a REIT company includes minimum Shareholders of 100 people, NOT less than 5 Shareholders can own up to 50% of the shares,this is to decentralize voting power (www.reit.com). Basically it's a Trust/custodian that deploys investors money into real estate and pays them dividends in return,could be monthly, quarterly or annually,its an easy way to invest in Real estate without spending large sum of dollars to buy up a property for lease,just buy some shares into the REITs AUM and get paid dividends monthly.You could also liquidate your shares at anytime,an added advantage for REITs investment is its high tensile resistance to inflationary impact and its low risk nature,unlike stocks that are volatile and inflation sensitive.
Interesting as it may seem to invest, the REITs industry is plagued with a myriad of challenges,both for an Investor and the REIT ,some of which I outlined below.
• Regulatory laws imposed by different countries, restricts participation by potential Investors and acquisition of new properties by REIT.
• Taxation imposed on dividends earned by investors,this cuts the profit margin of the investor.
• Inability to for Investors to acquire choice assets in the REIT.
• Centralized financial portfolio management annual profits open only to REITs.
• Cross border fiat payment clog and bureaucratic bottleneck for company registration of REIT across borders and loan access.
• Minimum down payment base limit is rather high,restricting the lower social strata of the society from owning a stake in the REITS.
GLOBAL REIT.
Global REIT is based in the UAE founded by an experienced Team in the commercial Real Estate industry. It is set to revolutionize the REIT industry by migrating REIT onto Blockchain technology resulting in the creation of TWO tokens backed by tangible Real Estate. The Blockchain technology is a decentralized open source code with immutable transaction records, created to evolve an enhanced, cost effective and transparent business and app models.This is to allow subscribers on the GlobalReit platform trade their assets or shares(now in tokens)on crypto exchanges for liquidity like its stocks counterpart and hedge their funds in USDT.
In the light of this GlobalREIT is offering two tokens to members of the public in an ICO sale, The GREM and the GRET utility tokens, ICO is live, Participants are issued with both tokens upon purchase.These two tokens are expected to drive the Global REIT ecosystem and provide economic benefits to all tokenholders.The GREM token is a fund manager returns token which pays monthly dividends to GREM holders,the second token is GRET which pays annual dividend to GRET token holders,what I do find interesting and see as a competitive advantage is
• the future access to all assets under management by Global reits are granted to GREM and GRET token holders at discounted rates,as a token holder you could rent an apartment in Global REIT AUM at a discounted rate.
• 8% guaranteed annual dividend payment on Global REIT first acquired asset valued at $75Million located in Palm Dubai UAE,to all token holders.
• Free stay in the first acquired AUM of Global REIT.
• Other benefits as decided by the company.
TOKEN METRICS.
Token type:Ethereum based ERC 20 utility tokens..
Token name:GREM and GRET.
Total supply:GREM 200,000,000 GRET 75,000,000
Other relevant information are available on the website.
IMPORTANT LINKS.
• Website: http://www.globalreit.io
• Roadmap: http://www.globalreit.io/#roadmap
• Whitepaper: http://globalreit.io/front/whitepaper/Global-REIT.pdf
• Main ICO Telegram Group: https://t.me/globalreit
• Twitter: https://twitter.com/GlobalReit01
• ANN Thread. https://bitcointalk.org/index.php?topic=3341986.msg34966361#msg34966361
• Bitcointalk.
• https://bitcointalk.org/index.php?topic=3352552.0
Written by Funmmi2
Bitcointalk profile link; https://bitcointalk.org/index.php?action=profile;u=2100818
If you find this article interesting do hit the like button and post a comment.
Quite an interesting article and an interesting project. I would look into the whitepaper to and visit the website to know more but overall, a great project
Please do,the ICO closes by 11.59 GMT 30th of june,you may need to be swift about it.
Quite an insightful piece,I read the roadmap and saw the plan to acquire their first $75M asset in July 2018 how is that going to play out?
The asset purchase is structured in a land plus improvement deal. Once the ICO closes and the developer receives payment for the value of the land, they will immediately start paying land rent for during construction. After the construction is completed, the remaining payment will kick in, which is for the remaining improvement on the asset The hotel’s operational income starts from there which is pre-leased at 8 percent. Payments for the first asset are being done in cash plus tokens. Hence the income of the trust starts immediately and give dividends from July.
GlobalREIT is a very exciting project with lot of prospects and benefits for investors. The ICO has successfully been concluded. Expecting it to hit the market soon.