Global REIT: A geographically-unlimited blockchain-based REIT
Real estate investment trusts (REITs) are a relatively new arrival on the real estate market, especially outside of the United States. But it cannot be denied that they serve an important function. While real estate is a traditionally desirable investment and very valuable for anyone wanting to build a long-term portfolio, investing in this type of property can be prohibitively expensive and difficult for the average investor. REITs offer a way around those hurdles through collective investment, but they can have their own problems: they, too, can be somewhat costly to join, are often geographically limited and unwieldy in their day-to-day operations.
A Dubai-based company now seeks to rectify those flaws by creating an innovative, geographically-diversified REIT that would incorporate blockchain technology to streamline management, ensure transparency and provide quick and reliable profits to all stakeholders.
How will this REIT work?
Global REIT will function much like a traditional REIT in that it will combine the investors' funds to invest in real estate properties and distribute the revenue among its investors. Where it differs is in its use of blockchain technology, starting with two types of tokens: the Global REIT Fund Manager Token (GREM) and the Global REIT Asset Token (GRET). In addition to a share of the REIT's returns and certain perks, those tokens will grant their holders access to an online platform.
REITs and other owners will be able to add their assets to the platform, turning them over to Global REIT's management. They will be carefully vetted before their properties are registered and opened for investment. Users will have access to full information on all listed assets, such as their features, history, value and market trends, with asset managers and investors receiving different information.
Investments are carried out through a smart contract with the assistance of the Global REIT Fund Manager (GRFM); once the GRFM provides a notarised proof, the investment is passed on to the owner of the asset, while the investor is rewarded with GRET. All transactions are additionally safeguarded by top-notch security measures and a complex validation mechanism between the three platform modules.
What are the benefits of owning GRET and GREM?
Each token has its associated dividends: GREM holders will receive a proportion of Net Asset Value (NAV) held by the company (at first 2%, later decreasing to 1.25%), while GRET holders will get 8% of the investment made in Assets Under Management (AUM). Those profits will be paid out in USD or USDT (a cryptocurrency whose value is tethered to that of the US dollar).
On top of those dividends, token holders will receive special perks. Owners of a minimum of 5,000 of either token will be eligible for free stays at hotel assets owned by Global REIT every year; they will also earn reward points from loyalty programs that can be used to receive free services. Those with at least 100,000 GREM will be able to sell their real estate assets to the trust in exchange for a cryptocurrency of their choice. Finally, both tokens will be fully trade-able on the exchanges.
What sets Global REIT apart from its competitors?
Global REIT stands out among most cryptocurrency projects as it draws a stable income from real world assets, making it uniquely attractive to cryptocurrency investors. At the same time, it also enjoys a number of advantages over traditional REITs due to its more secure, streamlined and fast-paced operations, supported by blockchain technology. It is both more accessible to new investors and will offer quicker (monthly, rather than yearly or semi-yearly) dividends, as well as extra benefits.
An important point in its favour is that Global REIT is already a fairly advanced project. Its platform has already been developed, it has already acquired its first AUM (a lucrative Dubai hotel) and it has secured important partnerships with such reputable firms as Deloitte (its independent financial auditor) and the MME law firm (its legal adviser). As its initial operations are centered on the dynamic business environment of the United Arab Emirates, the fact that it can refer to itself as a Sharia-compliant REIT should set prospective local investors at ease, given the ongoing controversy over the compatibility of cryptocurrency investment with Islamic law. However, the company has ambitious plans for global expansion, wishing to integrate local REITs into its ecosystem. In addition to a number of other UAE properties, it has already lined up one target asset in the UK and intends to diversify its portfolio further as it develops.
ICO details
A new stage in the evolution of real estate investment?
REITs constitute a rapidly though unevenly developing trend on the global real estate market. As more countries become open to this form of investment, and older markets grow in sophistication and saturation, the adaption of blockchain technology may be just the thing to bring this dynamic industry to a new level, drawing in new participants and bringing the operations of different REITs all around the world closer together.
Global REIT offers precisely this kind of breakthrough to the REIT industry, and given the groundwork it has already done on its project and the support of crucial partners, it appears to have good chances of success. Early on, the trust has a lot to offer to experienced cryptocurrency investors in particular, by creating a tokens with at least some guaranteed real world income attached to them. If this is enough to make the project a success in the short-term, its further expansion may succeed in attracting other participants, such as real estate owners and other REITs, stimulating the development of a bigger, more integrated real estate investment ecosystem.
Links
Website: https://www.globalreit.io/
WhitePaper: https://www.globalreit.io/front/whitepaper/Global-REIT.pdf
Telegram: https://t.me/GlobalReit
Facebook: https://www.facebook.com/GlobalReit-144007413076936/
Twitter: https://twitter.com/GlobalReit01
Medium: https://medium.com/@globalreit01
ANN: https://bitcointalk.org/index.php?topic=3341986.0
Author: https://bitcointalk.org/index.php?action=profile;u=2201409
Disclaimer
This review by Bonanza Kreep is all opinion and analysis, not investment advice.