German real estate giant invests in Security Token firm

Blockchain firm Fundament has managed to get investment from the German property developer Bauwens. The German company is taking a long-term bet on the future of real estate investment being tokenized. Bauwens acquired a 15 percent stake of the firm in cash in last month. Fundament earlier received a green light from the German Financial regulators.

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Fundament was launched earlier in 2017, and the company offers blockchain-based securities that are linked to German properties. In July, Fundament received approval from German financial watchdog BaFin for its first tokenized real estate bond with an issue volume of $274 million.

Bauwen’s managed development portfolio includes commercial and residential properties that are worth more than $7.3 billion. Along with the strategic investment, Fundament will have access to a development pipeline in the country’s key metropolitan areas.

Initially, the token was to be backed by five separate construction projects, including a daycare center in Hamburg and a university in Jena. Fundament will consider including some projects from Bauwens in its real estate portfolio for the token sale. In volume, Bauwens is among the top 3 project developers in the country. CEO of blockchain firm Fundament, Thomas Ermel, informed that they would select the most suitable projects out of the pipeline for their portfolio.

Ermel believes that besides the diversity of Bauwens’ real estate projects, the real estate giant has a name recognition that attracts major investors that might be interested in backing tokenized property fund. Alexander Jacobi, managing director of Bauwens, said that they are delighted to announce this partnership with the Fundament group, which achieved a massive breakthrough in Germany by securing the first regulated tokenized real estate bond.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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