One of the UK’s first blockchain property investment platforms has been launched by Key Land Capital.
The Birmingham-based business unveiled Cubey – a platform that uses the latest technology for people to invest in digital property shares.
It also enables property owners and developers to raise capital through the issue of digital property shares. The emphasis is on a more efficient property network, that provides incentives for both asset owners and investors.
Kevin Sharkey, managing director of Key Land Capital, said Cubey is at the forefront of digital investment in real estate. He developed the business model after studying blockchain technology and its impacts on the real estate sector at the Said Business School, University of Oxford.
The company will be tokenising assets within its property portfolio, including build to rent development Image House in Stafford, and purpose built student accommodation scheme Ringway House in Coventry, on the Cubey platform.
Sharkey said: “With the launch of Cubey we are leading where others in the real estate sector will follow. Tokenisation of property is something that is here to stay and will grow as more and more people appreciate the many benefits. Crucially, it will allow investors to access investment in property that they wouldn’t normally be able to, starting with a minimum investment of £1,000.
“Cubey utilises blockchain technology to split a property into digital tokens which can be purchased online. Investors will then have part ownership of the property and will have the benefit of any rental income and capital growth of the property. We are anticipating yields of between 5% and 8%, depending on performance. As Cubey grows we will be acquiring more properties that will be of interest to investors.”
Blockchain is a type of distributed ledger, in which transaction records are distributed across a network of locations and institutions. Blockchain technology is a shared database which allows multiple parties to share information that can be time stamped and without the need for an intermediary to verify or control that information.
Blockchain technology has quickly become one of the strategic priorities of some of the most influential companies and business leaders worldwide. It has the potential to reduce costs, create capital, enhance systems of trust minimise inefficiencies and radically transform business models.
Cubey is working with Polymesh Blockchain. Polymesh is an institutional-grade permissioned blockchain built specifically for regulated assets. It streamlines antiquated processes and opens the door to new financial instruments by solving the challenges around governance, identity, compliance, confidentiality, and settlement.
Sharkey added: “Polymesh is excellent from a security point of view, while being more compliant and more secure than other platforms. In the future it is envisaged the tokens will be listed on an exchange so there will be the ability to trade.”