Flyt Property Investment launches Africa’s First Property-backed Security Token
Flyt Property Investment, a South-Africa’s property investment specialist has launched Africa’s first property-backed security token.
The company said that the Flyt token (FLYT), which exists on the Ethereum blockchain, allows investors to subscribe for, redeem and transfer shares in the Flyt Hospitality Fund. The fund is a South African Section 12J fund investing in hospitality property and apart-hotels. One Flyt token is equivalent to one share (which is currently valued at R100) in the Flyt Hospitality Fund.
Flyt Property Investment teamed up with Switzerland-based Bakari for the tokenization process. Bakari presented the technology, and also works with originators, funds, and companies to promote the integration of Distributed Ledger Technology (DLT) throughout financial markets.
Co-Founder of Bakari Ciaran MacDevette said that “South Africa has a developed, forward-looking financial sector and it is not surprising to see it on a shortlist of countries embracing next-generation financial technology. We are proud to be working with the Flyt Hospitality Fund, which is leading to innovation by using technology to offer responsible investments directly to individuals.”
This is the first instance of a blockchain-based token servicing a fund operating within a regulated and legal environment in Africa. Investors who are acquainted with Ethereum blockchain can manage their Flyt token using their digital wallet.
FLYT is an ERC-20 compatible token on the Ethereum blockchain which can be a self-custody in existing Ethereum wallets.
Zane De Decker, MD of Flyt Property Investment says that the move to digital asset brings an exciting option for investors.
“Our aim is to be ahead of the curve and with that in mind; we are thrilled to present our investors with varied options of entry. An investment into the Flyt Section 12J hospitality fund is available via old-school investment into the fund and now, for those who support the blockchain technology, via the Flyt token,” he explained.
The token provides an easy infrastructure where investors can manage their asset through a trusted blockchain.
The Flyt Hospitality Fund is a property-backed section 12J fund, investing in strategically located hospitality properties with a focus on sectional-title serviced apartments and student accommodation. A minimum investment of R50 000 is compulsory, via the token or share option, with a cut off imposed by SARS of R2.5million.
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