Blockchain in real estate
Fibree was founded in 2018 with the aim of establishing blockchain technology in the real estate industry.on Achim Jedelsky from the Fibree Regional Chair Berlin invited Baltasaar’s Christian Heinz to give a lecture on blockchain-based financing in the real estate sector. The most important highlights.
The project financing of existing properties and development projects is experiencing a new dynamic through digitalization. The issue of a digital security opens up new financing options for real estate projects.
A special project company, a so-called Special Purpose Vehicle (SPV), is usually founded to develop real estate projects. To this end, the entrepreneur founds the company and holds the company shares. Investors can now participate in the long-term success of a project through sales or rental through the SPV.
The company issues the digital financial instrument in the form of a security token, which securely certifies the participation rights and obligations. Investors invest in the digital instrument and receive the shares in return. The added value takes place by the project company developing, renting and selling real estate.
By digitizing an asset on the blockchain, the asset becomes free and can be transferred to other buyers at any time.
Founded in Amsterdam on July 9, 2018, Fibree started with the goal of bringing real estate professionals and blockchain specialists from around the world together to share expertise. In a world that is increasingly influenced by technology, real estate processes also have to change. Blockchain technology is just one, but crucial building block of these changes. The possible effects of the blockchain are viewed as an infrastructure component (trust carrier) and thus as a “business model enabler”. At the same time, there is still great uncertainty about the real added value and applicability in real estate processes.
Experiments are increasingly being carried out worldwide with the possibilities of using blockchain for real estate. By bringing together the expertise of pioneers in this field and the exchange of knowledge already gained, FIBREE will make an important contribution to the introduction and implementation of this technology in the real estate market in the coming years.
FIBREE’s mission is to create healthy and realistic expectations that enable the real estate market to discover and use the true potential of blockchain technology step by step.
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