Case Study: ReitBZ

ReitBZ

Underlying Project

ReitBZ is an investment project into a distressed Brazilian real estate. The model is the following: proceeds of token sales are used to purchase distressed real estate pieces, which are then recovered and sold on a premium; 50% of the profits are distributed among tokenholders, and 50% are reinvested into purchasing new assets.

Legal Structuring

The legal structure chosen for the offering is a Cayman Islands exempted foundation, in which tokenholders participate as beneficiaries. It is explicitly stated in the whitepaper that “The directors of the Issuer will, at all times, have sole discretion as to whether the profits generated by the Target Assets (including any capital gains and/or distributable rent) are to be partially or fully distributed to Tokenholders through Airdrops, reinvested or used for other purposes (including, but not limited to, satisfying liabilities, expenses, running costs and other fees)”. This means that investors have no control over the investment vehicle and cannot force it to pay dividends.

Marketing Campaign

The two main reasons-to-believe (RTBs) of the ReitBZ offering were the reputation of BTG Pactual and the potential of the Brazilian real estate market. The campaign did not utilize emotional messages or a narrative, focusing solely on rational RTBs.

Conclusions

ReitBZ offering was barely successful as it raised only a bit more than the soft cap, and $3 million do not allow for a significant activity on the real estate market. However, the underlying project is strong and able to generate interest from investors. Thus, the problem is in the execution, driven by the desire to minimize costs.

What Stobox Does?

Stobox is a provider of multiple professional and technology services related to securities operations with a strong focus on fundraising.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Stobox Tokenization

Stobox Tokenization

Compliant fundraising solution for small and medium-sized enterprises, investment funds, and real estate developers from an award-winning company.