- Local news confirms that Taiji Capital is launching Hong Kong’s first real estate fund STO.
- The STO, named PRINCE is introduced via Taiji’s subsidiary Pioneer Asset Management.
- After regulatory approval, the PRINCE token will be listed on HKbitEX.
As reported by local news outlets, investment firm Taiji Capital has announced the launch of Hong Kong’s first real estate fund Security Token Offering (STO) through its subsidiary Pioneer Asset Management. The “closed-end fund” revealed that STO PRINCE will allocate exclusive tokens to professional investors, with the goal of securing HK$100 million in funding.
Additionally, the capital raised will be used to acquire ownership rights for a group of five interconnected shops situated along Prince Edward Road West in Kowloon. Meanwhile, To enable 24-hour trading and decrease financing expenses, Taiji Capital plans to list the PRINCE token on HKbitEX, the firm’s virtual asset trading platform, if regulatory approval is granted.
Zhang Zhongyu, the Vice President of Capital Markets and Asset Management Business at Taiji Capital, noted that STOs offer lower financing costs for real estate developers and owners while conventional funding methods such as bank loans mostly entail high interest rates, reaching as high as 5%.
Currently, the entry fee for the project stands at HK$ 1000. However, the managing director of the group’s capital markets and wealth management business, Liang Weijin clarified that the investor returns will include both rental income and the anticipated appreciation in property value. He highlighted that the annual dividends will be shared amongst investors based on the rental income from the stores, minus associated costs. Currently, shops with comparable rents along Prince Edward Road yield returns of 2 to 3%.
Lately, Hong Kong has been bullish when it comes to virtual real estate. Back in June, Fubon Bank unveiled plans to roll out a real estate tokenization initiative in the third quarter, in collaboration with Ripple. Fubon Bank aims to transform property transactions and streamline operations by utilizing Ripple’s technology, which involves tokenizing property liens and enabling loans in digital Hong Kong dollars specifically designed for this experimental phase.
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