Leaseum Partners, the first institutional grade tokenised New York City real estate fund, has partnered with Quantreq Capital Markets, the first crypto fund-only administrator, to launch its Security Token Offering (STO).
By using blockchain technology, Leaseum will provide investors with flexible and efficient access to a professionally managed and income-generating $250 million fund, comprising of investments in commercial real estate in New York City.
Leaseum will harness blockchain technology to improve the liquidity of the fund, issue shares as tokenised securities (which will be listed on exchanges), and pay-out quarterly dividends and capital gains to investors in either fiat or cryptocurrencies. The increased liquidity will allow investors to exit their investment at any time, thus dramatically reducing the standard five+ year lock-up period investors are usually subject to.
Steve Sillam, CEO of Leaseum, says: “This partnership offers both high quality and low risk execution, and the Quantreq team shares our long-term ambitions. We needed a fund administrator with a great track record and blockchain experience. Alex Mascioli, CEO at Quantreq is one of the most knowledgeable individuals in the industry, and we are glad that Leaseum’s investors will benefit from his skills and experience. ”
Quantreq Capital Markets is the blockchain spin-off from North Street Global, a US-based fund administrator. Quantreq administrates around 30% of the worldwide AUM of blockchain and crypto funds, and is the leader in his market.
Since announcing the initiative in June, Leaseum has conducted investor roadshows and has engaged with institutional investors and ultra-high net worth individuals across EMEA. North America and Asia. Additionally, through the release of its Light Paper that outlines its investment strategy and portfolio, Leaseum has received significant interest from investors who have whitelisted themselves and expressed serious interest in investing in its differentiated offering.
“For the first time, individual accredited investors will get the opportunity to invest in a professionally managed portfolio of New York City real estate, along with much bigger players, and from as little as $1,000 or equivalent. They will receive quarterly dividends and their share of the realised capital gain once the properties are sold. The tokens will be backed by real assets,” adds Sillam.
The online sale is scheduled to open to accredited individual investors in Q4 2018.