Introduction

Real Estate Investment Trusts (REITS)

Investing in real estate has long been an outstanding technique for wealth-building. Supported by numerous and with a myriad of choices to browse, people are spoilt for choice when it comes to their investment alternatives.

However, traditional real estate investment models show immense obstructions to entry. Aside from the difficult burden they make in terms of regulatory methods, the financial aspects appended to them make investing about unfeasible for most potential investors. For example, if you wish to possess property in a foreign nation, in addition to the huge capital required for the purchase of the asset, you would typically additionally be required to consolidate a nearby substance as a investing partner because of restrictions forced on foreign investors in many jurisdictions. Aside from this, you additionally need to satisfy all the statutory necessities, including however not restricted to tax, accounting and continuous enrollment commitments, which have noteworthy expenses related with them. In addition, there might be further limitations on the sort of property funds that an investor may put invest in, constraining choice and access to capital. Foreign direct investment likewise has vulnerability connected to it as far as the ever-changing micro and macro-economic conditions in every nation.

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

How do REITS work?

Global REIT works on the same mechanism as traditional REIT

The following 2 aspects make it a greatly alluring investment platform in the real estate industry globally.
• It is a Blockchain based REIT.
• It will pay month to month dividend to every single token holder.

Features of REIT:

The key features of a typical REIT are as follows:
• REITs are a platform for expanding a long -term investment portfolio
• Income of a REIT is produced through rent earned from its owned-asset portfolio, interest earned by financing real estate assets or sale continues upon sale of assets under management (AUM)
• 90% of income produced by REIT is distributed as dividend to its shareholders
• Publicly listed REITs are a liquid investment vehicle

Benefits of Integrating REIT with Blockchain Technology

Global REIT will work on the same mechanism as a traditional REIT however will offer added advantages to its token holders, not generally offered by traditional REITs, for example:
• Participation in the 'Fund Management Income'
• Stable, monthly and quick dividends month to month
• The Asset arrangement of Global REIT, which will include assets obtained globally
• Future access to every one of its Assets under Management (AUM) beginning with
• free stays each year in its first hospitality asset
• Reward focuses in the loyalty programs connected with its AUM, which can then be utilized to avail free services up to a specific limit

ICO Detail:

The ICO will be structured in a way that each investor will be issued 2 tokens.

Sales:

Distribution of Tokens:

• 57,857,143 GREM tokens will be issued pre-ICO
• 21,428,571 GREM tokens will be issued in the public ICO
• 110,714,286 GREM tokens will be retained by the Fund Management Company
• 10,000,000 GREM tokens will be reserved for the Advisory Board of Global REIT

• 12,150,000 GRET tokens will be issued pre-ICO
• 4,500,000 GRET tokens will be issued in the public ICO
• 58,350,000 GRET tokens will be issued to the asset owner of the first asset that will be acquired by Global REIT

Token Proceeds Utilization:

The utilization of proceeds from GREM tokens will be as follows:
• Funds raised by sale of 79,285,714 GREM tokens in both pre and public ICO will be used by the fund management company to carry out operations as follows:
o 35% Sales and marketing
o 30% Fixed compensation for team
o 15% Administrative expenses (office, IT, server hosting, taxes, etc.)
o 10% Legal and regulatory expenses
o 5% Audit expenses
o 5% Other miscellaneous expenses
• 110,714,286 tokens retained by the fund manager will be used in the process of acquisition of assets in the future
• The 10,000,000 tokens reserved for advisors will be used as remuneration for their services
The utilization of proceeds from GRET tokens will be as follows:
• Funds raised by sale of 16,650,000 GRET tokens in both pre and public ICO will be used to fund 22% of total acquisition price of its first Asset Under Management
• The remaining 58,350,000 tokens will be used for the settlement of the first asset acquired by Global REIT

Asset Return:

The first asset will be secured on an 8% yield locked in for 5 years. The return will be distributed as follows (before any expenses related to operations are incurred) upon token subscription in the form of dividends:
• Income of GREM token holders will initially start at 2% of AUM and will reduce by 0.25 % annually over the first three years stabilizing at 1.25% thereon
• Income of GRET token holders will be a stable ROI of 8% per annum on its first acquired asset

Conclusion:

Global REIT is the first ever blockchain-based Sharia-compliant REIT to be propelled in the market.

The organization will procure assets, beginning from UAE and quickly enter properties in jurisdictions around the world. The first Asset under Management (AUM) will have a Net Asset Value (NAV) of USD 75 million. The aggregate portfolio value of Global REIT is anticipated to achieve USD 10 billion by end of 5 years.

The ICO will offer the following dual utility tokens to its subscribers in a respective 25-75 split:
• Global REIT Fund Manager Token (GREM)
• Global REIT Asset Token (GRET)

For more Information please visit the official links below:

Author: Ahtsham
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GLOBAL REIT: (Global Real Estate Investment Trust Real Income on Blockchain)