Real estate investment is a very interesting and profit making enterprise and individuals who are interested in investing in real estate are free to do so in many ways. However, the major problem with this process is the fact that there are many stumbling blocks to entry. They make investing unfeasible for potential investors by creating regulatory and financial burdens. In addition to these, there is vulnerability in terms of economic conditions (Micro and Macro) in each country.
These above problems led to the creation of Real Estate Investment Trusts (REITs). REIT serves as a diversification platform for long term investments. It is a corporation that finances income from real estate, it can be either publicly or privately owned. A major feature of REITS is its ability to generate 90% income which is distributed to its shareholders as dividend. When a REIT is publicly listed, it can be regarded as a liquid investment vehicle.
Similarly, the blockchain technology is the current biggest market disruptor. The blockchain technology serves as the backbone of the market cap of crypto currencies by facilitating and securing anonymous transactions.
A combination of the global rights and blockchain technology will provide help to;
- A crypto investor looking for stable dividends
- A crypto investor looking to invest in real estate assets
- Real estate asset holder who wish to exit into a liquid market in crypto domain
- REITs who would like to take advantage of an existing blockchain framework
The Global REITs program is the first REIT which is a sharia-complaint based blockchain to be launched. It offers investors with the need exposure of global real estate markets with the investor acquiring an entire property. Global REITs aims at acquiring assets within the jurisdiction of the U.A.E and from there other jurisdictions worldwide. The Global REITs first asset under Management (AUM) is predicted to have a net asset value of USD 75million while the value of the Global REITs is expected to reach a whopping USD 10billion in five years, making it one of the fastest growing and profitable real estate ventures.
The idea behind the creation of the Global rates idea is an investment portfolio of a global real estate that will be able to offer more benefits when REITs and the Blockchain technology are intertwined then just the traditional rates. As one of the first blockchain based real estate platforms, transparency is ensured as well as strict adherence to independence in decision making, thus, the interest of all it stakeholders are safeguarded through a thoroughly selected and well-trained corporate and technological government board and committees. The Global REITs platform aims to create a diverse platform for assets from across the globe to plug into and create a unique platform for cross-investment opportunities worldwide.
The Global REITs sector has grown tremendously in the last 10years (2007-2017), there is noticeable increase in terms of the introduction of REITs in new countries and also expansion of the sector in countries where it exists already. Still there is a future growth plan to expand this platform further, and the Global REITs sector intends to this by acquiring more assets which will include Hotels, shopping malls, residential and commercial properties, hospitals, warehouses and so on. This is expected to be achieved using a diversification strategy which connotes not just diversity in different classes of assets to be acquired but also a diversification of the geographical locations of the assets to be acquired.
The aim of this is the reduction of different macroeconomic risk conditions globally. To avoid the risk of bad asset acquisition, the process of acquisition undergoes a rigorous selection process which involves;
- Asset Acquisition Opportunity Discovered
- Initial Evaluation
- Due Diligence
- Evaluation by Independent Globally Renowned Evaluation Company
- Independent Investment Committee Approval
- Asset Acquired
USEFUL LINKS
Website: https://www.globalreit.io/
Whitepaper: https://www.globalreit.io/front/whitepaper/Global-REIT.pdf
ANN Thread: https://bitcointalk.org/index.php?topic=3341986.msg34966361#msg34966361
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Author's Details
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