Patel Actual Property Holdings (PREH) has launched a $100 million tokenization fund on the Chintai blockchain, aiming to provide accredited traders entry to institutional-grade actual property alternatives.
The brand new PREH Multifamily Fund is a tokenized funding car targeted on classic Class A multifamily models throughout the highest 20 US development markets, the corporate advised Cointelegraph on Might 12.
“The whole construction is digital-native from the beginning — compliant onboarding, reporting, capital calls, and (potential) secondary market transfers,” a PREH spokesperson mentioned.
The fund is a part of a broader $750 million funding car co-developed by PREH and a number of other institutional companies, together with Carlyle, DRA Advisors, Walton Avenue Capital, RPM and KKR. Initially, the corporate mentioned that $25 million of the $100 million allocation can be tokenized on Chintai.
Based on PREH, the tokenization construction helps alleviate many transparency and liquidity constraints traders usually face in personal market placements.
Based in 2010, PREH is a nationwide actual property asset supervisor that oversees a portfolio of Class A multifamily properties. The corporate owns and operates actual property investments, overseeing the acquisition, financing and administration of properties.
Since its inception, PREH has accomplished greater than $500 million in actual property transactions.
Chintai is a tokenization-focused layer-1 blockchain that additionally powers the R3 Sustainability Fund for environmental, social, and governance (ESG) investing. Its native token, CHEX, is at present valued at $0.24, with a complete market capitalization of $244 million, based on CoinMarketCap.
“We selected Chintai as a result of they provide a totally regulated, institutional-grade platform purpose-built for tokenizing real-world belongings,” PREH’s president, Tejas Patel, advised Cointelegraph in a written assertion, including:
“Their expertise permits us to take care of the best requirements of compliance and investor protections whereas introducing the efficiencies and entry benefits of blockchain.”
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Tokenizing actual property
Tokenizing actual property has lengthy been seen as a method to modernize property funding, however till lately, real-world examples have been uncommon.
By early 2025, actual property tokenization had gained traction throughout North America and the United Arab Emirates, whereas efforts are underway in Europe to determine regulatory frameworks that assist its development.
One of many largest catalysts for tokenization is the “potential to eradicate the illiquidity low cost on actual property,” Polygon CEO Mark Boiron advised Cointelegraph in March.
The expansion of liquid secondary markets for fractional actual property may considerably strengthen that benefit.
This motivation additionally drove RWA platform DigiShares to launch the REX market on Polygon earlier this 12 months, that includes two luxurious property listings in Miami, Florida.
Efforts are additionally underway to tokenize industrial actual property, with Blocksquare and Vera Capital lately partnering to supply fractional possession of greater than $1 billion value of properties.
Towards this backdrop, consultancy agency Deloitte has forecast that $4 trillion value of actual property can be tokenized on the blockchain over the following decade.
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