Digital tokenization startup, tZERO announced Wednesday that it has partnered with Alliance Investments, a real estate investment company based in the United Kingdom, to tokenize portions of real estate.
Per the update, the first project that tZERO will tokenize for Alliance Investments is River Plaza, a 180-unit luxury residential development that is located in Manchester, UK. At least $25 million of the property’s value would be tokenized and sold to investors in a security token offering (STO).
Regarding the blockchain platform to be used for the tokens, tZERO will follow the steps of BTG Pactual Brazil’s largest standalone investment bank who in July announced it would issue real estate tokens on the Tezos blockchain
Meanwhile, the STO for River Plaza mentioned in the latest announcement is expected to launch within Q1 of 2020, with the partnership also expected to lead to further tokenization of U.K based real estate properties worth roughly £500 million ($643 million).
Sharing his thoughts on their new partnership with Alliance Investments, tZERO CEO Saum Noursalehi expressed a conviction that the real estate industry would significantly benefit from the concept of tokenization.
He said in a statement:
We believe that asset tokenization will revolutionize the real estate sector. We applaud Alliance Investments for spearheading one of the world’s first real estate-backed security token offerings. Tokenization of real estate will democratize access and greatly enhance liquidity for this asset class.
The announcement also disclosed that other real estate properties that tZERO could tokenize for Alliance Investments include residential and student accommodation, commercial buildings, and hospitality properties.