Coreestate Launches the First Tokenized Real Estate in Scandinavia
Coreestate, a Danish real estate developer, has since July 2023 been raising funds for GREV55, a security token representing a residential real estate asset in Vejle, Denmark.
“We see that tokenization will be at the core of our business operations, by allowing us to raise capital for different real estate investment projects,” the founder Kristaps Cuders said.
The GREV 55 is Live on Coreestate.io
The GREV 55 property is located in the Danish city of Vejle. It has a unique location on the top of the hill, close to the city center.
It has a private driveway and parking for residents. The area around the building is rich with beautiful nature and located right by the city center.
The GREV55 property comprises a stand-alone, three-story building that has a total gross area of 396 m2. A land plot that belongs to the building is 918 m2, which will allow residents to have plenty of outside areas located by the house.
Originally built in 1912, it has undergone multiple modernizations; however, at the moment, it needs to be renovated to meet modern standards.
The business strategy for Coreestate
With a background in the real estate industry and in-house competence to manage the design and construction of real estate renovation projects, the Coreestate team is perfectly situated to execute acquiring, renovating, and offering real estate successfully.
“We offer investors an opportunity to invest in tokens that are backed by real-world real estate and to earn passive income from tenant rental payments,” said the founder and CEO, Kristaps Cuders, and he continues below the image.
“Our business model consists of identifying investment properties, negotiating the purchase with the owner, planning engineering, architectural, construction, and financial aspects of the project, acquiring necessary permits from the municipality, issuing tokens backed by the property, raising capital for renovation, renovating the building, finding tenants, renting the property, and maintaining it,” said Kristaps.
“Tokenization made capital raising more effective, allowing us to effectively manage shares and fractionalize offerings without having a bunch of manual processes.”
Retail, professional, or institutional investors?
“We are a Danish firm, targeting all three from the European Union. However, we see Danish, Norwegian, and Dutch investors as our primary target users,” said Kristaps
How does Coreestate determine the value of the asset?
Coreestate estimates that the building’s market value after renovation will be €2 million, and the yearly rent collected will be €70,000.
“The value of real estate can mostly be determined based on the price per square meter in that location, the quality of the building, and the cash flow it generates,"
For a 100€ minimum investment, you can join the 40 investors who have already taken part in the primary offering of the GREV55 security token.
Where are you now?
“We have launched the project and issued security tokens. Our launch is more technical than fully fledged.
We are witnessing significant interest from traditional investors and expect to gain more traction once we execute our marketing strategy with full force,” ends the CEO of Coreestate.io Kristaps Cuders who is to be contacted directly on Telegram at @Kristaps_cuders.
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Leap into Tokenization with Henrik Skaksen
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Disclaimer: This is not investment advice.
