The investment target was reached during the private placement of security tokens as beneficial interest in shares of a student accommodation block in Nottingham, valued by Knight Frank at £12.06m in September, 2018.
Smartlands Platform raised enough capital from private investors to buy 30% of Winrise One Limited – the company that owns the property, with the remaining 70% being held by the original developer Windermere Capital Investments Ltd. and Shojin Property Partners. Shojin Property Partners is the manager of the investment.
“The investment period is three years,” comments Arnoldas Nauseda, Smartlands CEO, “however, there may be an opportunity for investors to sell their Investee Tokens earlier when Smartlands finishes work on its proprietary secondary market trading platform scheduled for launch in late 2019. There may also be an option to extend the period of investment beyond three years.”
Investors are expected to earn an income return of 5.74% per annum on average, paid quarterly over the three-year term (excluding the expected capital growth). The total expected ROIC is 47.17% over three years (15.72% annualised), which includes income and capital growth. Both of the above-mentioned expected returns are after corporation tax and a 20% profit share paid to the originator Shojin Property Partners.
Smartlands Platform is a Worldwide Security Token Issuance Platform designed for 21st-century crowdfunding. The platform is geared to bring together token issuers and investors by creating blockchain-based securities backed by digital ownership of shares in multiple asset classes. Smartlands Platform is built on the Stellar network and employs advanced blockchain technology with fast, cheap, secure transactions and extended capabilities.