On 29th October 2019, the real estate developer giant, Alliance Investments, announced they have partnered with Tezos Foundation and tZERO, to develop real estate projects all over Europe with a tokenized fund of £ 500 million.
The real estate company has named River Plaza as their first tokenized development project. The project is set to comprise of a residential complex of 180 luxurious units, at the banks of the River Irwell in the UK.
The company said that approximately £ 20 million of the River Plaza Project capital would be tokenized, and the STO will be launched in the first quarter of 2020.
River Plaza Project will become the first real estate project backed by a Security Token Offering (STO) in the UK. Alliance investments have partnered with blockchain developers, Tezos Foundation, tZERO, and Megalodon.
River Plaza’s STO will be developed on Tezos blockchain and tokenized by tZERO
Alliance investments will use tokenization technology services provided by tZERO, blockchain technology by Tezos Foundation, and advisory services from Megalodon. The secondary trading technology employed by tZERO will make the STO compatible with Tezos foundation’s blockchain technology.
“Raising funds through an STO in more efficient, cost-effective autonomous and democratic than traditional financing.” Rani Zahr CIO Alliance Investments.
LLC, a subsidiary of tZERO and PRO Securities, uses an alternative trading system to unlock liquidity for investors, a strategy that tZERO will leverage to develop River Plaza’s STO.
“Tokenizing the real estate will democratize access to this traditionally exclusive asset class, and we are thrilled to partner with alliance investments to advance our goal of tokenizing and trading all assets.” tZERO CEO Saum Noursalehi.
The partnership is a big comeback for tZERO after losing a potential investment opportunity in august 2019 with Makara Global Investment Firm that had invested $100 million. In yet another incident, tZERO was on the brink of shutting down due to fraudulent trading allegations directed at its parent company, Overstock.com.
The £ 500 Real Estate Projects will be completed in the third Quarter Of 2022
The project will run for several years all over the UK and will include residential, commercial, student housing, and hospitality properties.
“It is our mandate to power real-world use cases of blockchain adoption with the most advanced open source technology, and we are excited to work with alliance and tZERO to make this happen.” Tezos Foundation’s Hubertus Thonhauser.