By Andrei Skvarsky.
Brickblock, a company building a blockchain-based trading platform for connecting cryptocurrencies with real-world assets, is due to put the world’s first tokenised real estate item – an apartment block in Berlin – on sale this month.
The blockchain-based sales of the building’s 27 apartments with total floor space of 1,528 square metres (16,447 square feet) are due to start in mid-December and would be completed in January, the Berlin-based firm said in a statement.
Brickblock, which has raised $5m over the past several weeks through an initial coin offering (ICO), pre-ICO token sales and private investment, is getting ready to put two more properties on the market, according to the statement.
The statement said a banker had been hired to manage the sale of the Berlin apartment block and subsequent property sales – Peter Schott, who has had a 30-year career in the financial and real estate markets and is chief executive of RSI Unternehmensgruppe, a Wiesbaden-headquartered financial and property consultancy.
RSI will oversee Brickblock real estate deals in Germany, Austria and Switzerland.
“Our [real estate] investment process is simple: users choose a property, invest into the property by acquiring tokens reflecting the economics of the property, and earn passive income out of the property,” Brickblock said in its statement.
“The allocation of the income is achieved by depositing the excess cash flow out of the property into the investor’s Ethereum wallet by means of a smart contract.”