Tokenized Properties, a sub-agency of property consultants West London City Lets, is planning to sell a real-world plot of land on the Hampshire coast worth £1.9 million in Ethereum cryptocurrency using a Non-Fungible Token (NFT) to facilitate the transaction.
A NFT is a record on a blockchain which is associated with a particular digital or physical asset – in this case a sea-facing plot of land in Milford-on-Sea in Lymington.
The land has an approximate span of 120mx22m, a 380m perimeter and an approximate area of 2680sqm.
If successful this will be the first UK property company to support the sale of physical land through an NFT and also the first time this type of land sale has taken place in the UK.
Tokenized Properties has partnered with tech firm Mattereum, NFT agency Mint Collective and a team of investors to help the sale go ahead.
We truly believe that this is the future of property transactions.”
Sale data will be stored securely using the Mattereum Asset Passport which bundles together legal rights and guarantees, paired with Mattereum’s smart contracts and held on an immutable public storage platform.
This will enable the required searches, title deed and reference media for due diligence to be displayed and streamline the purchasing process.
Investors will be able to trade the NFT as many times as they wish for up to five years but the owner of the NFT can take legal possession of the land by transferring it with a token purchase of £1.
While the NFT will represent the land and the contract it’s not connected to any planning applications which will have to be sought.
Idris Anjary, founder of West London City Lets and Tokenized Properties, says: “We truly believe that this is the future of property transactions and are delighted to be embarking on this as our next adventure.”
Mattereum founder and chief executive Vinay Gupta adds: “Real estate transaction costs are extraordinarily high, both in terms of diligence on the buildings and the mechanics of legal transfer of title. Innovation in the space to make buying and selling real estate cheaper and easier is going to liberate a lot of dormant potential in the sector.”
The NFT goes on sale on September 5, 2022.
Go to Publisher: Proptech Archives – The Negotiator
Author: Robyn Hall