GlobalREIT: GREM and GRET — crypto tokens, backed by real estate assets
Previously, we`ve talked about what REITs are and how GlobalREIT is an innovative new project that is using blockchain on a REIT structure . Today we`ll provide a little more detail on the project and dive further into the token structure.
REITs, or Real Estate Investment Trusts were created to minimize the effort one needs to make in order to invest in real estate but they often look a lot better on paper than they do in the real world.
And while blockchain is the technology that is able to provide transparency and trust, a big part of the crypto market has mostly been a FOMO fueled, heart attack inducing rollercoaster. Not necessarily something that comes to mind when thinking of stable investment.
One of the big arguments against investing in crypto currencies is the claim that they have no material assets to base their value on, they`re not backed by something real.
As one of the latest ICO`s to enter the scene, our project, GlobalREIT, is aiming to eliminate that claim and provide a bridge between cryptocurrencies and real estate assets, very much real and palpable that will generate income paid through monthly dividends to investors.
GlobalREIT is the first blockchain backed real estate investment trust
The blockchain brings a lot of operational advantages (among others) to the classical REIT structure.
For example, a typical REIT that distributes 90% of the generated income to their investors, just like we will, has to handle all that distribution, usually just once a year (to limit expenses) by sending checks for instance. We leverage the blockchain to bypass a lot of the inconveniences associated with a typical REIT structure. We only need to push a few buttons in order to distribute those dividends once a month, hassle free anywhere in the world, to either a crypto wallet or a bank account.
Our vision is that everyone should be able to invest in a diversified, income producing, real estate asset portfolio and we are using the ethereum blockchain to make it a reality.
The first asset scheduled for acquisition, is valued at 75 million dollars. It will be a 4 star hotel, called Mysk by Shaza and it will be located on The Palm in Dubai, a luxury 5 star area which places it as a great value proposition. It’s under construction and will be completed in Q4 of 2018.
When the ICO finishes, on June 30, the land will already start to generate rent (paid by the owner) and the dividends will start coming, even before actual construction is finished.
That is just the first phase and after completion the income from the operation of the hotel will start to produce 8% monthly dividends for a guaranteed 5 years as the setup stands now.
And this is just the beginning. We will continue to expand our asset portfolio in the UAE, where the second and third assets are already planned for acquisition but as the name GlobalREIT suggests, we’ll be heading around the world to places like London and Singapore too. That will progressively reduce volatility further through geo redundancy and diversification, which will increase stability and income growth for the investors. In the future, we`ll create a global network that will allow other REITs to take advantage of our platform.
Global REIT — Token distribution
So how does it actually work? Let`s take a concrete example and say you invest 1000$ in the ICO.
You`ll receive 2 tokens :
- Global REIT Fund Manager Token — GREM
- Global REIT Asset Token — GRET
At a 75/25 ratio :
- 75% GRET with a 1$ initial value — 750 tokens
- 25% GREM initial value of 7 cents — 3571 tokens
You can invest: Ether, Bitcoin or US dollars, an amount of your choosing, into the REIT, from anywhere in the world and you`ll be receiving 8% dividends at a frequency you choose, in the form you choose, meaning either crypto (USDt or tether) or dollars sent to your bank account.
The whole thing looks like this :
GREM will only be issued during the ICO and it basically represents an investment into the actual management team of GlobalREIT — the company. It will also provide dividends too, yearly at a 1.25% rate. GREM won`t be issued anymore post ICO.
GRET represents the investment in the trust. GRET tokens issued for the first asset, will produce an 8% dividend monthly, and as our fund will keep buying assets looking for at least the same margin, new GRET tokens will be issued at the market value of the new asset, keeping it at a minimum of 1 dollar per token so as not to dilute the initial investment.
This is a very attractive prospect, during the ICO phase especially, as you get the chance to be an actual shareholder in GlobalREIT the company, in addition to the share in the investment trust we`ll be managing.
But wait — there’s more!
Because the tokens are backed by actual tangible assets, and the dividends they produce are basically rent income generated — the volatility usually associated with crypto currencies is almost nonexistent.
‘’We will be adopting blockchain tech but doing real world business.” Ali Tumbi, the founder of GlobalREIT
This is a great opportunity for those of you who are already established crypto investors who want to diversify and reduce volatility for at least part of your holdings. It’s for everyone and everybody wins with 8% dividend guaranteed from the first asset alone for the next 5 years.
The financial audit — handled by Deloitte
The financial audit will be handled by one of our partners, Deloitte. We’ll send a monthly report detailing the trust`s operations, and also inform on new acquisitions. A lot of information will also be available in the GlobalREIT dashboard.
Crypto is a growing market with a value over $400 billion. It’s still very volatile, but as we are offering real world asset backed tokens, it’s a great opportunity for investors to significantly decrease volatility while keeping their funds in crypto and receiving dividends. Join us as we build our vision for a global, democratized, real estate investment network. We can’t do it without you.
You can catch us on the Telegram group with any questions, and follow the details as they are shared.
The pre-ICO is live and we are approaching the $9m mark! Act quickly to secure your 15% bonus.