RedSwan CRE, a pioneering player in the tokenization of real-world assets (RWA), reached a significant milestone on September 21st, 2023, by securing an exclusive assignment to tokenize and distribute a $4 billion real estate portfolio onto the blockchain. The Houston-based tokenization firm, known for its leadership in bringing quality real estate investment opportunities to the blockchain, will design a tokenized fund structure, enabling its client, managed by Dubai-based WhiteRocks Holding, to manage a digital cap table and access new investors globally while mitigating risk for wealth management and individual participants.
The historic portfolio, appraised by global commercial real estate (CRE) industry leader Cushman and Wakefield, stands as one of the largest private client deals to embrace innovative tokenization. It comprises 36 mixed-use properties in the Middle East Gulf States region, showcasing an 80% stabilization rate across office, multi-family, retail, and industrial sectors, complemented by 20% prime development sites.
Key Highlights:
Tokenization Leadership: RedSwan CRE has been at the forefront of tokenizing commercial real estate, and this $4 billion portfolio represents a historic undertaking in the realm of blockchain-based real-world asset tokenization.
Global Capital Access: The tokenized fund structure crafted by RedSwan enables the client to manage a digital cap table, offering access to new investors worldwide. This move aligns with the growing trend of leveraging blockchain for efficient capital raising and global investor liquidity.
Stability and Growth in the Middle East Gulf States: The real estate market in the Middle East Gulf States is characterized by stability, and industry projections by CBRE suggest a 5.70% growth rate from 2023 to 2028, with a development pipeline valued at $1.4 trillion.
Comprehensive Portfolio: The portfolio comprises a diverse range of properties, including office spaces, multi-family units, retail spaces, industrial properties, and prime development sites, reflecting RedSwan CRE’s commitment to tokenizing institutional-grade real estate across various sectors.
Web 3 Transformative Impact: WhiteRocks Holding recognizes the transformative impact of Web 3 tokenization and plans to implement it across all future capital projects. Dr. Raha, Head of Digital Assets for WhiteRocks, views RedSwan CRE as a trusted partner to execute these transformative endeavors.
Edward Nwokedi, Founder and CEO of RedSwan CRE, expressed excitement about bringing this monumental portfolio to market, emphasizing RedSwan’s mission to guide clients in raising capital from digital sources. With over $5 billion in tokenized commercial real estate assets across the United States, RedSwan aims to position itself as a key player in the tokenized real estate space.
RedSwan CRE, established in 2018, has been unwavering in its dedication to tokenizing institutional-grade real estate into digital securities. The RedSwan Markets division is registered with the SEC as a Registered Investment Advisor (RIA), and Founder and CEO Edward Nwokedi brings 18 years of experience in the capital markets. The collaboration with WhiteRocks Holding signals a strategic move to capitalize on the vast potential of Web 3 and the growing demand for digital securities in the real estate market.