Why Tokenize a Commercial Real Estate Fund? Part 3 — International Investors

Leaseum Partners
Leaseum Partners
Published in
4 min readOct 10, 2018

Commercial Real Estate (CRE) in the United States is a highly sought-after asset class for both domestic and international investors. According to the United States Department of Commerce, the U.S. is the single largest recipient of foreign direct investment (FDI). This is the result of an innovative business environment, massive consumer market, accomplished workforce, and a complex legal structure, among other factors.

In part 3 of our series “Why Tokenize a Commercial Real Estate Fund,” we explore the potential benefits that Leaseum Partners provides to foreign investors.

Commercial Real Estate (CRE) in the United States is a highly sought-after asset class for both domestic and international investors. According to the United States Department of Commerce, the U.S. is the single largest recipient of foreign direct investment (FDI). This is the result of an innovative business environment, massive consumer market, accomplished workforce, and a complex legal structure, among other factors.

In part 3 of our series “Why Tokenize a Commercial Real Estate Fund,” we explore the potential benefits that Leaseum Partners provides to foreign investors.

New York City CRE has historically provided robust returns to its investors and has shown relative stability, rebounding robustly after the 2008 recession. In fact, according to the global CRE leader Newmark Knight Frank, “international sources have invested more than $365 billion in US commercial real estate.” Now, in the eyes of the foreign investor, Leaseum makes it much easier for international investors to establish a foothold within this market.

We believe Leaseum Partners provides international investors an easier way to invest in US real estate compared to what is available to them today.

Leaseum token will be available online to international investors during our crowdsale. International investors will be able to invest as little as $1000 and get exposure to a professionally managed portfolio of New York City property.

Tokens will be issued at $1 and therefore once listed on exchanges, the fractional ownership mechanism will allow greater access to small investors to this asset class.

Fractional ownership lowers the usual barrier to entry into real estate investment, which usually requires a large amount of capital.

In addition, token holders will collect their quarterly dividends in FIAT currency or can choose to receive cryptocurrencies, which is usually quicker and cheaper than international bank transfers.

International investors can therefore invest easily in NYC real estate and will be able to sell their tokens on exchanges, which is a much more liquid form of real estate investment than what they usually have access to.

We expect to generate interest from international investors once they have acknowledged that Leaseum is able to provide more efficient and convenient access to one of the most stable asset classes in the world.

Leaseum accepts foreign investors from all countries other than blacklisted ones (see offering documents), contingent upon their ability to successfully complete our Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements on the primary market but also on secondary trades.

About Leaseum Partners

Leaseum Partners is utilizing blockchain technology to disrupt traditional processes associated with investing in Commercial Real Estate by providing token holders with dividends, voting rights and capital gains rights.

If you are interested in learning more about Leaseum Partners, our light paper is available to subscribers on our website.

In the meantime, stay updated on our progress:

Disclaimer:

This article is given for information purposes only and no part of it is legally binding or enforceable, nor is it meant to be. Whilst we believe that the information provided in this article is reliable, its accuracy is not guaranteed and no warranty is given or implied. Certain statements contained in this article constitute forward-looking information involving known and unknown risks and uncertainties, which may cause actual events to differ materially from the estimates implied or expressed in such forward-looking statements. More information about the ICO is available at https://www.leaseumpartners.com

None of the information in this article is intended to provide a basis for an investment decision, and no specific investment recommendation is made. Accordingly, nothing in this article shall be deemed to constitute a prospectus of any sort or a solicitation for investment, nor does it in any way pertain to an offer to sell or a solicitation of an offer to buy any securities or rights of any nature whatsoever in any jurisdiction.

The ICO is not intended for jurisdiction where sale or use of digital crypto-assets may be prohibited. Moreover, the ICO, if launched, will be limited to accredited investors within the meaning of Rule 501(a) of “Regulation D” of the Securities Act 1933 under U.S. law or any equivalent qualification under local laws. You are strongly advised to carry out a legal and tax analysis concerning the participation to the ICO according to your nationality and place of residence.

This article shall not be copied, reproduced, disseminated or disclosed in any way in whole or in parts, nor shall it be distributed to a “U.S. Person” within the meaning of Section 902(k) of “Regulation S” of the Securities Act 1933 under U.S. law.

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