01Client
A real estate developer that owns several residential buildings containing a large number of apartments.
02Objective
Tokenise individual apartments so that token holders receive economic returns linked to a specific property: rental income while the apartment is leased or proceeds if the property is sold.
03Challenge
An apartment cannot simply be divided legally into hundreds of small ownership interests.
The project therefore required a structure in which each property is held through a separate legal entity, while the corresponding tokens give holders economic rights linked to the income generated by that asset.
04Solution
A separate SPV and a separate token issuance are created for each apartment. Token holders receive rental income or sale proceeds in proportion to the number of tokens they hold.
A holding company sits above the SPVs, while a separate issuing company is responsible for issuing the tokens. This keeps each property and its income stream legally separated within one group.
05Process
- Determined the appropriate jurisdictions and legal setup for the issuing company, the SPVs and the holding company.
- Designed the group structure: a holding company, an issuer and a separate SPV for each apartment.
- Defined how the entities interact throughout the lifecycle of the structure, from establishing each SPV and issuing the tokens to their subsequent circulation.
06Result
The developer received a scalable operating model that can be replicated for each additional property brought into the tokenisation structure.
Key takeaway
A separate SPV for each property makes the structure transparent: a token holder can clearly identify the specific apartment their tokens relate to and the income stream to which they are entitled.