In Italy, a real estate transaction involving two properties was tokenized on the Ethereum blockchain.
The transaction was carried out by RealHouse Srl, in partnership with INVESTI R.E. 24 SpA, through the creation of an equity token of Immobiliare Casati Srl, called RHC1, linked to the underlying property consisting of two buildings in Piazza Casati, Rome, for a total collected value of 3 million euro.
This took place on the BlockInvest platform, a Blockchain-compliant platform owned by RealHouse Srl.
A digital passport for the transaction was created on BlockInvest, covering everything from the loan issued by Unicredit bank to the details of the property and the vehicle that will carry it out, followed by the creation of the Equity Token RHC1 for shareholders thanks to a smart contract.
At the basis of the operation, there was an NPL (Non-Performing Loan), which the bank claimed from a third party company and which was guaranteed by the two buildings in Rome.
A new special purpose vehicle was therefore set up to manage the acquisition of the loan and the subsequent real estate development.
At that point, fundraising was arranged with private and accredited investors, who received a proportional number of the 1,000 RHC1 tokens issued, each representing a share of the special purpose vehicle.
According to RealHouse, this is only the first in a series of real estate transactions that will be tokenized through the BlockInvest platform, and in partnership with INVESTI R.E. 24 SpA.
In fact, the size of the NPL market is huge, such that in Italy alone, for example, it is estimated at around 180 billion euros.
Also according to RealHouse, tokenization in the real estate sector, and in particular with regard to real estate as a guarantee for NPLs, makes it possible to benefit from certain advantages: increased transparency and efficiency in the availability of procedural information, reduced transaction times and costs, especially with a view to a possible future secondary market, and reduced time and costs of investor identification procedures (KYC, AML).
Moreover, it also allows the token to be programmed in relation to documents with legal tender.
