A Cape-town based real estate investment firm, Flyt Property has reportedly become the first in South Africa and arguably the entire continent to roll out property-backed security tokens for public investors.
According to the local news agency, TechFinancials, Flyt Property today rolled out FLYT tokens, an Ethereum-based token that allows holders to redeem and transfer shares in the Flyt Hospitality Fund, a South African Section 12J fund investing in hospitality property and apart-hotels.
The new funding initiative was developed in partnership with a fintech service provider, Bakari, and presents an exciting investment option for investors who are tech-inclined.
Per the report, One FLYT token being the equivalent of a single share in the fund goes for R100 ($6.66), a price that makes investments in the offering more divisible. Holders can also custody FLYT tokens themselves using any compatible Ethereum wallet, while investment in the fund requires a minimum capital of R50,000 (appr. $3314) or a maximum of R2.5million ($167,000).
Zane De Decker, MD of Flyt Property Investment while commenting on the new entry model for prospective investors, reportedly said:
Our aim is to be ahead of the curve and with that in mind, we are thrilled to present our investors with varied options of entry. An investment into the [..] hospitality fund is available via old-school investment into the fund and now, for those who support the blockchain technology, via the FLYT token.
Meanwhile, although Flyt is arguably the first to roll out such a product in South Africa, Stmarket.co also reported that the first blockchain-based tokenization of a real estate property in Luxembourg was completed on July 23, 2019.