Alliance Investments Announces Plans to Tokenize £500m of UK Real Estate
UK-based Alliance Investments, a direct-to-developer real estate investment company, today announced its plans to tokenize £500m of real estate projects across the UK over the next several years. The first project of its real estate tokenization plan is River Plaza, a 180-unit luxury residential development that is located on the banks of River Irwell and directly opposite of Castlefield in Manchester. In collaboration with tZERO, Tezos Foundation and Megalodon, Alliance Investments’ River Plaza project is the UK’s first real estate-backed security token offering (STO) and one of only a handful of real estate STO’s worldwide.
Alliance Investments intends to tokenize at least £20m of the value of River Plaza. The River Plaza STO will be digitized using tZERO’s tokenization technology and Megalodon’s advisory services and issued on the Tezos Blockchain. River Plaza’s security tokens will provide investors with liquidity through tZERO’s secondary trading technology, which powers the alternative trading system operated by PRO Securities, LLC, a subsidiary of tZERO. The STO is expected to launch in Q1 of 2020.
Alliance Investments CIO Rani Zahr said, “Raising funds through an STO is more efficient, cost-effective, autonomous and democratic than traditional financing. We believe that we are at the forefront of a technological change that can disrupt the current funding paradigm and we are delighted to partner with two global players that are leading blockchain innovation, tZERO and The Tezos Foundation, for our first STO.”
A real estate-based STO is the process of issuing digitally-enhanced equity securities in a holding company that owns the real estate asset. More generally, security tokens can be structured to represent a variety of ownership and economic interests in an underlying asset, such as equity in a company that owns the asset, an interest in debt secured by the real estate, a stream of income based on cash flows from the asset or an interest in the capital growth of an off-plan project, to name a few.
tZERO CEO Saum Noursalehi said, “We firmly believe that digital securities represented by security tokens are the future of how the world will trade value. Tokenizing real estate will democratize access to this traditionally exclusive asset class, and we are thrilled to partner with Alliance Investments to advance our goal of tokenizing and trading all assets.”
Tezos Foundation Board Member Hubertus Thonhauser stated, “We are impressed by Alliance Investments’ entrepreneurial vision to redefine real estate ownership and tZERO’s mission to make liquid assets available to a broad audience. It is our mandate to power real world use cases of blockchain adoption with the most advanced open source technology, and we are excited to work with Alliance and tZERO to make this a reality.”
Megalodon Managing Partner Esteban van Goor said, “We are glad to see a company like Alliance Investments taking a lead in tokenizing its assets and are pleased to advise them on their first STO.”
The £500m of real estate projects will be tokenized over the next several years in all parts of the UK with projects ranging from residential and student accommodation to commercial and hospitality properties.
The River Plaza building is scheduled to complete in Q3 of 2022. For more information about River Plaza, visit www.riverplazamanchester.com.
With 30 years of experience in the property development sector, Alliance Investments are renowned for their ability to deliver some of the most outstanding and exciting developments across the country. Alliance Investments have an extensive award-winning property portfolio, covering everything from residential and office developments, to industrial and hotel sectors. With a team of industry experts, investors have come to know Alliance Investments as specialists when it comes to delivering luxury concepts and high-quality finishes. For more information, please visit: https://alliance-investments.com/.