Real Estate Tokenization. Step-by-Step Guidance

  • Construction project financing: The securitization vehicle issues securities (debt instruments or certificates) and uses the proceeds of such issuance to invest in a specific development project with the objective of selling this project in the relatively near future (usually within three years). The securitization vehicle will receive the proceeds of the sale of the project over the coming three years or upon completion and will pay an income to the security holders either based on fixed interest or variable interest or a combination of both.
  • Existing real-estate object financing: Existing real estate can be bought or refinanced using securitization vehicles. This is usually done in order to replace bank financing if existing credit. lines are needed for new projects. The proceeds from rental payments generate the income stream for investors. Again, the relatively stable coupon associated with this type of financing can be attractive to investors.

The overall structure of the transaction

1. Allocation of an asset

2. Initiation

3. Creating an SPV

4. Selling an asset

5. Securities/tokens issuance

6. Credit Enhancement

7. Credit rating evaluation

8. Asset management

9. Sale of securities




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Stobox Tokenization

Stobox Tokenization

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