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Zurich’s Swankest Shopping Strip Clocks $153-Million Real Estate Deal Using Digital Tokens

January 16, 2020

Prime commercial real estate gem Bahnhofstrasse 52, in the heart of the eighth most expensive retail location worldwide, has reportedly been converted into a blockchain-enabled investment following its $134-million sale (CHF130 million). The high-tech property transfer is Zurich, Switzerland’s most recent move to tap into the value of physical real estate properties by using digital tokens.

Purchased by Zug-headquartered real estate investment company BrickMark on January 15th, the building has several business offices and a Swatch retail outlet. The firm issued blockchain-based tokens, underpinned by a bond, that can be acquired and traded by investors who are interested in earning a portion of the luxury building’s rental income.

BrickMark financed around 20% of the purchase by providing the seller, RFR Holding, a set of its newly minted digital tokens. RFR Holding has now acquired a stake in the building’s future income.

Stefan Rind, CEO at BrickMark, says,

“There has never been a token-financed transaction of this magnitude. We are implementing what was once no more than a concept in the real estate industry.”

The building is part of a larger real estate portfolio that’s worth an estimated $1 billion. BrickMark is currently in the process of acquiring a $55 million cash investment from professional investors and aims to finance future acquisitions with its digital tokens.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/berm_teerawat