Germany’s Black Manta Capital Partners has tokenized Berlin real estate on its platform on April 14, making it the first of what is to be many such projects to be launched on the platform. Black manta, which specializes in Security Token Offerings (STOs), partnered with German real estate firm Tigris Immobilien for the offering. The offering will close on May 31, 2020.
The minimum amount for investment in 500 Euros and the maximum $2 million Euros. The property is currently only available to German and Austrain investors. This limitation is a result of German capital market regulations, but Black Manta has plans to serve customers all over Europe - some future properties will be open to all residents of the European Union (EU).
The property in question is a largely residential apartment property that is 2000 square metres in area and home to multiple apartments that are 40 - 60 square metres in size. Black Manta co-founder and managing partner Christian Platzer said that the benefits of real estate tokenization bring “lower transaction costs, transferability, tradability” and that “you can invest in real estate today, without going to a notary.”
Black Manta was granted a license by Germany’s regulator BaFin in August 2019. Platzer described the firm’s goals at the time as follows,
Tokenization in the core financial field of securities will – for sure – bring paradigmatic change to the global financial markets.” – “While Black Manta Capital Partners want to be ‘boutique’ in its beginnings and run ‘handpicked’ STOs only, our strategy is global from day one: the first step is to link Europe and Asia on one blockchain-based investment platform.
Several companies are offering tokenized real estate, which a University of Oxford report in February 2020 suggested could be the future of real estate. Tokenized real estate allows users from all over the world to overcome geographical barriers and invest in lucrative properties with affordable amounts. This accessibility has spurred the real estate tokenization market to grow over the last year.