BrickMarkhas signed a purchase agreement for a high-profile prime commercial property inone of the world’s most expensive and exclusive shopping street in Zurich.
TheZug-based next-generation real estate investment and management firm made the purchaseon Bahnhofstrasse by using tokens that were worth over CHF 130 million (?103m).
StephanRind, founder and CEO of BrickMark, said: “We are breaking new ground for thereal estate industry. There has never been a token-based real estatetransaction of this magnitude. We are implementing what was once no more than aconcept in the real estate industry. This is why it was so important to us thatthe real estate and transaction partners were of the highest quality andreputation.”
Thetransaction between both the parties is based on a share deal. Before thetransaction took place, BrickMark bought 80 per cent of the shares of BahnhofstrasseAG with a call option on the remaining 20 per cent within 9 months.International real estate investor RFR Holding GmbH is the seller of the propertyand will remain a 20 per cent shareholder in Bahnhoftstrasse AG and will bespearheading the redevelopment process. A substantial portion of the purchaseprice will be paid in BrickMark tokens.
At the end of 2018, the Swiss Federal Council issued a report that outlined the legal framework for distributed LEDGER technology to be included in the current financial system. In the report, the council had proposed an amendment to the country’s securities law in order to ensure the legal certainty of crypto tokens. During the time FINMA also introduced a new fintech license with “relaxed” requirements that are applicable to blockchain and cryptocurrency-based firms.
