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Global Reit ICO Review- Real Estate on the Blockchain

Tuesday, June 19, 2018

Real estate investing is an increasingly favourable method of wealth-building, and there are many ways for individuals to invest in real estate. However, traditional real estate investment models have immense barriers to entry. They create onerous burden in terms of regulatory and financial aspects attached to them and makes investing unfeasible for most of the potential investors. For example, if you want to own a real estate asset in a foreign country, in addition to the significant capital required for purchasing the asset itself, you would generally need to incorporate a local entity as an investing partner since investment by foreign investors is restricted in most jurisdictions. You also need to fulfil all the statutory requirements including but not limited to tax, accounting and ongoing registration obligations which have significant costs associated with them. Further, there are restrictions on the type of property funds that an investor may invest in, limiting choice and developers access to capital. Foreign direct investment also has vulnerability attached to it in terms of micro and macroeconomic conditions in each country.

To mitigate these risks and overcome investing challenges, the market offers Real Estate Investment Trusts (REITs) as an alternative investment vehicle. A REIT is a trust, corporation or an association that owns, or finances income-producing real estate and can be publicly listed or privately owned.

About Global REIT

Vision of Global REIT is to create a global real estate investment portfolio that will offer additional benefits than a traditional REIT by intertwining REITs to the Block Chain Technology. Global REIT will begin its investor offering at its home base in Dubai, U.A.E. and then rapidly expand worldwide. The company sees cryptocurrency investors who want to simultaneously invest in real estate and earn regular dividends and, real estate holders seeking to exit into a liquid market anchored by cryptocurrency, as their key targets for participation on the Global REIT platform.

Global REIT is the first ever Blockchain based Sharia-compliant REIT to be launched in the market. It is offering investors exposure to global real estate markets without the necessity of acquiring an entire property and shift the management and compliance obligations to the fund management. Global REIT will acquire assets starting from U.A.E. and rapidly enter properties in jurisdictions worldwide. The first Asset under Management (AUM) will have a Net Asset Value (NAV) of USD 75 million and the total portfolio value of Global REIT is projected to reach USD 10 billion by end of 5 years.

Global REIT and Blockchain

Global REIT is a new project based out of Dubai/UAE. It is similar to a traditional REIT, except it uses crypto-tokens on the blockchain for accounting purposes. It also provides other benefits, from loyalty points to ability to stay in one of their properties for a limited time, all tracked through the blockchain.

Global REIT will raise money through an ICO, and have 2 tokens sold to investors. These are Global REIT Fund Manager Token (GREM) and Global REIT Asset Token (GRET). The company currently plans to accept BTC, ETH, and ERC20 tokens along with fiat to buy these tokens. The dividends however are paid USD and USDT. Given the controversy around USDT, hopefully the team can be smart about paying in BTC or ETH instead.

A nice bonus that the team is throwing in is that for investors who hold more than 5,000 GRET or GREM tokens can avail free stays in their hospitality property each year.

As for the actual numbers, the returns are paid out as dividends for both GRET and GREM token holders. GRET pays out a stable 8% per annum dividend on the first acquired asset. The GREM token pays out a 2% AUM (assets under management) that decreases to 1.25% in 0.25% increments over time.

If you’re interested in this project and its ICO, make sure you really understand what you’re buying. The tokens are asset backed by real estate. Make sure you have thoroughly read the website and also their whitepaper. Remember that any token investment is risky and you should never invest more than you can afford to lose.

How Global REIT Blockchain Real Estate Investment Trust Works

Users on the Global REIT platform will subscribe to both the Global REIT Fund Management Token (GREM) and the Global REIT Asset Token (GRET). Through this, users gain access to GREM and GRET share returns in addition to the utility that both tokens offer. They also get the opportunity such as;

  • Free stays for above 5,000Gret and Grem token ownership.
  • Selling off real estate assets within the ecosystem for 100,000 Grem token holders, with multiple Cryptocurrency payment options
  • A stable 1.25 % AUM annual income for Grem token holders after three years
  • A steady return on investment income of 8% annually for Gret token holders for first acquired assets.
  • An asset management model for both frontend and backend of all assets on the platform
  • Transaction module for API and Interface calls for external transactions
  • Compliance and Security Module for 24/7 security on all investors and asset owners transactions.


The Global REIT Link

Cryptocurrency investment has gone up in massive amounts in the recent years, and Global REIT is a unique organization that allows you to use that money to invest in properties. The path is quite simple to understand; by investing with currency such as Ethereum, the Global REIT database connects you to the respective property owner you are about to deal with, who in exchange offers smart contracts through that very database for your property share retrieval.

One major advantage that REIT can bring to you is its initial coin offering; by exchanging your existing cryptocurrency for its newly designed Gret and Grem you can become a shareholder of possible fortunes ahead.

Utility of Tokens

The token holders of GREM and GRET will get future access to all Assets Under Management (AUM) of Global REIT. Regarding the Hospitality Assets, token holders with minimum 5,000 tokens of GRET or GREM can avail free stays every year. Furthermore, reward points will be offered in the Loyalty Programs attached with its AUM and these points can be used to avail free services up to a certain limit. Another utility for token holders of GREM is that those with minimum 100,000 ICO tokens have an option to sell their real estate assets to Global REIT and enter the liquid market in crypto domain. These tokens can either be bought from the Fund Manager (GREM) or from the Open Market. The settlement of such acquisition will be done in any crypto currency and the capital base will be open ended.

Global REIT GRET Token ICO Details

The Global REIT would distribute its 79,285,714 Grem tokens and 16,650,000 Gret tokens for the pre-sale and public sale;
  • The Pre-ICO sale would begin on 1st May 2018-31st May 2018 with 57,857,143 Grem tokens at $0.070 per token and 12,150,000 Gret tokens at $1 per token. (29%)
  • The Public ICO starts on 1st June 2018-30th June 2018 with 21,448,571 Grem tokens at $0.070 per token and 4,500,000 Gret tokens at $1 per token. (11%)
  • There will also be 10,000,000(5%) Grem tokens reservation for the Advisory Board and 110,714,286(55%) Grem tokens for the Fund Management Company. Extra bonuses do apply for both Grem and Gret token holders only at the Pre-ICO sale.

Partnership

To be a partner with the distinguished fellows above is actually not that hard, all you need is some currency, Bitcoin or Ethereum to acquire some tokens in the initial coin offering organized by Global REIT. Two token types are on offer.

The Global REIT Asset Token or GRET will cost a dollar per token while the Global REIT Fund Manager Token or GREM will cost 0.070 dollar.

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