GLOBALREIT – GOOD PROJECTS
Hello everyone, On this occasion, I will explain about a very good platform that is about GLOBAL REIT, let’s look at the explanation below.
Global REIT is the first ever Blockchain-Based Sharia-Compliant REIT to be launched in the market.
It will start with a Net Asset Value (NAV) of USD 75 million and will reach USD 2 billion by end of 3 years. The first ICO will take place with 90 million coins for sale. The investment made by token holders will be invested in tangible assets which will generate income for all shareholders.
REAL ESTATE INVESTMENT TRUSTS (REITS)
Investing in real estate has long been a well-known method of wealth-building.Favoured by many and with a myriad of options to choose from, individuals are spoilt for choice when it comes to their investment options. However, traditional real estate investment models present immense barriers to entry. Apart from the onerous burden they create in terms of regulatory procedures, the financial aspects attached to them make investing nearly unfeasible for most potential investors. For example, if you wish to own property in a foreign country, in addition to the significant capital required for the purchase of the asset, you would typically also be required to incorporate a local entity as an investing partner, due to restrictions imposed on foreign investors in most jurisdictions. Apart from this, you also need to fulfill all the statutory requirements, including but not limited to tax, accounting, and ongoing registration obligations, which have significant costs associated with them. In addition, there may be further restrictions on the type of property funds that an investor may invest in, limiting choice and access to capital. Foreign direct investment also has vulnerability attached to it in terms of the ever-changing micro and macroeconomic conditions in each country.
To mitigate these risks and overcome investing challenges, the market offers real Estate Investment Trusts (REITs) as an alternative investment vehicle. AREIT is a trust, corporation or an association that owns, or finances income-producing real estate and can be publicly listed or privately owned.
HOW DO REITS WORK?
The key features of a typical REIT are as follows:
• REITs are a platform for diversifying a long-term investment portfolio
• Income of a REIT is generated through rent earned from its owned-asset portfolio, interest earned by financing real estate assets or sale proceeds upon sale of assets under management (AUM)
• 90% of income generated by REIT is distributed as dividend to its shareholders
• Publicly listed REITs are a liquid investment vehicle
However, REITs too have their own downsides. Some of these include:
• Jurisdictional dependence on geography
• Financial barriers to investment
• Distribution being paid out half-yearly or annually
• Legislative in terms of the complex approvals on sale and purchase of assets
MERGING REITS WITH BLOCKCHAIN TECHNOLOGY
Blockchain, over the last few years, has gained immense traction as one of the most exciting ways to invest, disrupting whole industries in its wake. It was initially designed to facilitate, authorize, and log the transfer of bitcoins and other cryptocurrencies. Cryptocurrencies are digital money that use the blockchain technology to facilitate secure and anonymous transactions. The statistics as of today, show the market cap of cryptocurrencies at US$502,375,504,565 with blockchain technology serving as its backbone. This combination is being further linked to various industries with an anticipation to revolutionize the traditional approach to businesses and reap benefits including cost reduction, faster settlements, and increased transparency.
Global REIT is blockchain technology applied to a real-world REIT model.
SOLVING THE RISKS OF A TYPICAL CRYPTO
cryptocurrencies run a number of risks, such as being highly volatile and speculative assets. However, by modeling Global REIT as a comprehensive REIT offering a full solution, the team has been able to solve many of the risks associated with a typical crypto, by means of the following:
• A business model is entirely asset-backed
• Low swing percentage compared to the typical 10% daily norm
• Geographically diversified portfolio of assets
• Income rooted in the real world
• Stable returns on a monthly basis
GLOBAL REIT – BENEFITS OF INTEGRATING REIT WITH BLOCKCHAINTECHNOLOGY
Global REIT will work on the same mechanism as a traditional REIT but will offer added benefits to its token holders, not otherwise offered by traditional REITs, such as:
• Participation in the ‘Fund Management Income’
• Stable, monthly and instantaneous dividends monthly
• The Asset portfolio of Global REIT, which will include assets acquired globally
• Future access to all its Assets under Management (AUM) starting with free stays every year in its first hospitality asset
• Reward points in the loyalty programs attached with its AUM, which can then be used to avail free services up to a certain limit
The vision of Global REIT is to be able to create a truly global real estate investment portfolio that will offer better value-added benefits than traditionalists. This is set to shape the landscape worldwide, in how real estate investments are perceived, accessed and transacted.
Global REIT will offer investors exposure to global real estate markets without the necessity of acquiring an entire property, by shifting the management and compliance obligations to the fund management. In the process, investors will learn from a property, while enjoying stable, instantaneous and monthly dividends, along with a host of other additional benefits, not otherwise offered by traditional REITs.
Global REIT is the first ever blockchain-based Sharia-compliant REIT to be launched in the market.
The company will acquire assets, starting from UAE and rapidly enter properties in jurisdictions worldwide. The first Asset under Management (AUM) will have aNet Asset Value (NAV) of USD 75 million. The total portfolio value of global REIT is projected to reach USD 10 billion by end of 5 years.
The ICO will offer the following dual utility tokens to its subscribers in the respective 25-75 split:
• Global REIT Fund Manager Token (GREM)
• Global REIT Asset Token (GRET)
This means that each subscriber will get a share in the Fund ManagementCompany (GREM) returns and the Asset Owning Company (GRET) returns besides the utility attached to both the tokens in the pre-ICO stage, bonus tokens are offered to subscribers in four trenches with the maximum bonus tokens given to those subscribing in the first tranche.
Ethereum (ERC-20), Bitcoin (BTC) and Fiat Currency will be accepted for a subscription to these tokens and in return, the dividends will be paid in USD and USD (Tether)…
DISTRIBUTION OF TOKENS
• 57,857,143 GREM tokens will be issued pre-ICO
• 21,428,571 GREM tokens will be issued in the public ICO
• 110,714,286 GREM tokens will be retained by the Fund Management Company
• 10,000,000 GREM tokens will be reserved for the Advisory Board of Global REIT
• 12,150,000 GRET tokens will be issued pre-ICO
• 4,500,000 GRET tokens will be issued in the public ICO
• 58,350,000 GRET tokens will be issued to the asset owner of the first asset that will be acquired by Global REIT
UTILITY OF TOKENS
The token holders of GREM and GRET will get future access to all Assets UnderManagement (AUM) of Global REIT.
With regards to the hospitality assets, token holders with minimum 5,000tokens of GRET or GREM will be eligible to avail free stays every year. Furthermore, reward points will be offered in the loyalty programs attached to its AUM, and these points can be used to avail free services up to a certain limit.
Another utility for token holders of GREM is that those with minimum 100,000tokens have an option to sell their real estate assets to Global REIT and enter a liquid market in the crypto domain. These tokens can either be bought from the fund manager (GREM) or the open market. The settlement of such acquisitions will be done in any cryptocurrency and the capital base will be open-ended.
The first asset will be secured on an 8% yield locked in for 5 years. The return will be distributed as follows (before any expenses related to operations are incurred) upon token subscription in the form of dividends:
• Income of GREM token holders will initially start at 2% of AUM and will reduce by 0.25 % annually over the first three years stabilising at 1.25% thereon
• Income of GRET token holders will be a stable ROI of 8% per annum on its first acquired asset
CORPORATE AND TECHNOLOGICAL GOVERNANCE
Since Global REIT is one of the first blockchain based real estate platforms, we have ensured that concerns of transparency and independence in decisionmaking are addressed strictly. The interest of all its stakeholders will be safeguarded through the below exhibited corporate and technological governance board and committees.
The independent financial auditor of Global REIT is Deloitte, one of the ‘BigFour’ audit firms and the legal advisor is MME, a globally renowned law firm.
GRET TOKEN AND ASSET VERIFICATION
For a successful blockchain based REIT to function, proof of asset ownership is
a vital component in the value chain. Our proprietary protocol to ingest real
estate assets and tokenize them via a smart contract lies at the heart of the
system. The architecture of the system is based upon developing a smart
contract to establish trust between three key parties: 1) The Investor, 2) The
Asset Owner (or broker), and 3) The Global REIT Fund Management Company.
The investor deposits either Ethereum or Bitcoin into the contract while the
asset owner or broker registers their asset with the Global REIT Fund Manager
(GRFM). The GRFM then proves receipt of the asset in notarized form and the
investor can be confident that the contract will activate only when the validity
of the asset has been established via the smart contract. At that stage, the
investment currency is passed over to the asset owner and in return, an asset-backed
token, GRET, is issued to the investor. The token implements the ERC20
protocol and can be traded on all global exchanges listing the coin.
Cryptocurrency is digital money, created from code and free from all
governmental oversight. The cryptocurrency economy is monitored by a
peer-to-peer internet protocol. Cryptocurrency is an encrypted string of data or
a hash, encoded to signify one unit of currency.
The total market cap of cryptocurrencies stands at the US $502,375,504,565 with
a total of 1,542 cryptocurrencies trading in the market.
2018 is bound to be another interesting year for the technology, with even
greater awareness and adoption than 2017.
GLOBAL REIT SECTOR
The Global REIT sector has grown significantly in the last decade; both in terms
of REITs being introduced in new countries, and in terms of an increase in the
size of the sector in existing jurisdictions. Data from NAREIT shows that the
market capitalization of the US REIT sector has more than tripled to $1trn in the
past 10 years, with the number of REITs growing from 152 to 224. In Europe
growth has been slower, but according to EPRA the market cap of the listed
European real estate sector has grown by a third in the same period from
€150bn to €200bn. In Asia, the REIT sector has grown by almost two thirds, from
$135bn to $213bn, according to data from Consilia Capital.
As per EY’s global REIT report issued in 2017, the stages of REIT regime
maturity around the world stand as follows:
UAE REIT SECTOR
Emirates REIT was the first public REIT to be launched in the UAE in 2010,
followed by the second public REIT, ENBD REIT in 2017. These investments
instruments are still relatively new to the region and represent a notably small
the share of the UAE’s listed real estate market compared to other countries,
however, the market will most likely benefit from increased education and
information regarding the function of REITs, enabling this sector to gain traction
amongst retail and institutional investors.
THE GLOBAL REIT TEAM
Global REIT uses blockchain technology to offer up access to the real estate investment market. Such an aspiring undertaking requires resourceful talent, as well as a thorough knowledge of the global real estate market, but also programming, ICO marketing and operations. Below is the Global REIT team, who bring together all of the required capabilities.
BOARD OF ADVISORS
For more information visit the link below:
Profile Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=875875;sa=summary