Global REIT: The First Sharia-Compliant REIT Launched in the Cryptocurrency Market

Mitigate These Risk and Overcome Investing Challenges

So, if you are looking to invest in real estate perhaps in a foreign country, in addition to the significant capital required for purchasing the asset itself, you would generally need to incorporate a local entity as an investing partner since investment by foreign investors is restricted in most jurisdictions. You will also need to fulfill other statutory requirements including and not limited to taxation, accounting, and many other registration obligations as well as restrictions on the type of property funds.

Furthermore, foreign direct investment also has vulnerability attached to it in terms of micro and macroeconomic conditions in each country. To mitigate these risks and overcome investing challenges, the market offers Real Estate Investment Trusts (REITs) as an alternative investment vehicle. A REIT is a trust, corporation or an association that owns, or finances income-producing real estate and can be publicly listed or privately owned.

Asset Value of USD 10 billion

Global REIT is the first ever Blockchain based Sharia-compliant REIT to be launched in the cryptocurrency space today. It is offering investors exposure to the real estate market on a global scale without the necessity of acquiring an entire property and shift the management and compliance obligations to the fund manager. At first, Global REIT will acquire assets from the UAE and rapidly acquire more assets from other jurisdictions worldwide. The first AUM (Asset under Management) will have a Net Asset Value of USD 75 million. Gradually by the end of 5 years, Global REIT is projecting an Asset Value of USD 10 billion.

The firm has decided to leverage the power of blockchain technology to build a world-class, robust platform on the Ethereum blockchain, powered by the strength and reliability of smart contracts to create custom asset tokens (GRET). The GRET token is based on the ERC20 standard which means the token will be tradable on all token exchange platforms, unlocking rapid, simpler, cheaper, and more secure trading than traditional REITs.

Global REIT has its pre-ICO scheduled to start from 1st May and ends 31st May 2018, during which it will offer Dual Utility tokens to its subscribers; Global REIT Fund Manager Token (GREM) and Global REIT Asset Token (GRET). This means that each ICO subscriber is entitled to a share in the Fund Management Company (GREM) and returns from the Asset Owning Company (GRET), besides the utility attached to each token. Publicly listed REITs will be liquid investment vehicles. Token holders of Asset Owning Company will be paid monthly dividends from their participation in the Fund Management Income, which is quite unlike traditional REITs.

Loyalty Program Which Will Be Attached to Its AUM

In the Pre-ICO stage, bonus tokens will be offered to subscribers in 4 tranches, with maximum bonus given to those subscribing in the 1st tranche. ETH, BTC and Fiat currency will be accepted for the subscription to these tokens. Subscribers will, in turn, receive dividends on their investments in USD and USDT (Tether). REIT will offer additional benefits including future access to any of its AUMs with free stays every year in its 1st Hospitality Asset, and reward points through its loyalty program which will be attached to its AUM, among others.

Additional utility of the token allows the holder of GREM with a minimum balance of 100,000 tokens to have options to sell their real estate assets to Global REIT and thereby enter into the liquid market of the Global REIT domain. These tokens can either be bought from the Fund Manager -GREM- or from the open market. The settlement of such acquisition will be done in any cryptocurrency and the capital base will be open-ended.

First of the assets will be secured on an 8% yield locked in for 5 years. The return will be distributed in two ways following ICO subscription. One, the income generated for 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. Secondly, the income to GRET token holders will be a stable Return on Investment of 8% p.a. on its first acquired asset. In both instances, income is before any expenses related to the operation are incurred.

Corporate Governance

Given that Global REIT is one of the first blockchain based real estate platforms, the firm has ensured that any concerns regarding the transparency and independence of the decision-making process is addressed strictly. In the interest of all stakeholders, the firm will implement an elaborate multi-level decision-making structure that is designed to exhibit utmost efficiency in the corporate and technological governance of the firm by the company’s board and various committees. They are a team of highly-energized experienced individuals with decades of experience in the real estate market.

INTRODUCTION REAL ESTATE INVESTMENT TRUSTS (REITS) Investing in real estate has long been a well-known method of wealth-building. Favoured by many and with a myriad of options to choose from, individuals are spoilt for choice when it comes to their investment options. However, traditional real estate investment models present immense barriers to entry. Apart from the onerous burden they create in terms of regulatory procedures, the financial aspects attached to them make investing nearly unfeasible for most potential investors. For example, if you wish to own property in a foreign country, in addition to the significant capital required for the purchase of the asset, you would typically also be required to incorporate a local entity as an investing partner, due to restrictions imposed on foreign investors in most jurisdictions. Apart from this, you also need to fulfil all the statutory requirements, including but not limited to tax, accounting and ongoing registration obligations, which have significant costs associated with them. In addition, there may be further restrictions on the type of property funds that an investor may invest in, limiting choice and access to capital. Foreign direct investment also has vulnerability attached to it in terms of the ever-changing micro and macro-economic conditions in each country.

ICO DETAIL

DISTRIBUTION OF TOKENS

GREM TOKEN DISTRIBUTION

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

GRET TOKEN DISTRIBUTION

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

GLOBAL REIT SECTOR WHITEPAPER v.1.0 The Global REIT sector has grown significantly in the last decade; both in terms of REITs being introduced in new countries, and in terms of an increase in the size of the sector in existing jurisdictions. Data from NAREIT shows that the market capitalisation of the US REIT sector has more than tripled to $1trn in the past 10 years, with the number of REITs growing from 152 to 224. In Europe growth has been slower, but according to EPRA the market cap of the listed European real estate sector has grown by a third in the same period from €150bn to €200bn. In Asia the REIT sector has grown by almost two thirds, from $135bn to $213bn, according to data from Consilia Capital.

FOUNDER, ALI TUMBI ON ‘WHY YOU SHOULD BUY IN

THE GLOBAL REIT TEAM

Global REIT uses blockchain technology to offer up access to the real estate investment market. Such an aspiring undertaking requires resourceful talent, as well as thorough knowledge of the global real estate market, but also programming, ICO marketing and operations. Below is the Global REIT team, who bring together all of the required capabilities.

CORE TEAM