$134 Million worth Real Estate property in Zurich sold via 20% Cryptocurrency Token Payment
The cryptocurrency industry set-off with the pompous beginning as a lucrative instant profit-making industry until the bubble burst in recent times. Over the last decade, it has witnessed a lot of defamation, disbelief, and apprehensions. But over the time this roller-coaster ride has been settled with a more promising future and the industry is maturing rapidly than ever, exploring the wide spectrum of utilities in the real world.
Crypto assets have been redefining the real estate sector and the recent massive deal in Switzerland Zurich has stamped this development.
Last week, the Zurich real estate market witnessed a massive deal of one of the most exclusive and prominent shopping commercial Complex Bahnhofstrasse 52 located in the most sought after commercial location at Zurich.
How the Deal was Sealed?
A major real estate investment firm BrickMark from Zurich bought the majority of stakes in this hi-profile exclusive real estate commercial property.
RFR Holding which is the reputed real estate investment group, recognized for purchasing a well-known Chrysler building in 2019 carried out this deal. Out of the $134 million, deal amount, BrickMark partially (20%) sealed the deal by creating and issuing Ethereum based proprietary BrickMark tokens.
The investors will have fractional representation through the individual shares of ownership in the building will have the opportunity to and sale digital tokens of the property.
With the tokens representing around 20% of the approximately $134 million transactions, BricMark’s property deal records the largest token-based real estate transaction in history.
In a press release, BrickMark CEO Stephen Rind said, “We are breaking new ground for the real estate industry. There has never been a token-based real estate transaction of this magnitude.”
More about the Property Bahnhofstrasse 52
Bahnhofstrasse 52 is a 1600 square meter property located in the commercial zone of the most sought region of Zurich.
Currently, this space is largely utilized by private firms. The new owners aim to redevelop this property within the next 2 years with a new vision redesigning the individual areas of the property. It is expected that these changes will double the property's rental value.
Managing Director of RFR, Alexander Koblischek commented:
“We gladly accepted the BrickMark tokens as part of the purchase price,” “We assume that digital financial instruments will also significantly gain in importance in the real estate sector in the future. The current transaction may have an icebreaker function for the sector in terms of its volume and institutional character.”
Other worldwide Blockchain-based Deals in Real EstateA Chinese Bitcoin supporter had sold 500 units to purchase the San Francisco mansion in 2018. In 2017, another deal allowed to invest Bitcoins which was initiated by The Bloody Bay Firm which allowed to buy 13 acres of land in St. Vincent and the Grenadines.
CBW - External Analyst