In a groundbreaking move, Taiji Capital is set to launch Hong Kong’s first-ever token-based real estate fund STO. This pioneering initiative is made possible through Pioneer Asset Management, a subsidiary of Taiji Capital. The fund, known as PRINCE, is slated to be listed on HKbitEX upon receiving regulatory approval.
The Advent of PRINCE
As reported by local media, Taiji Capital has taken the lead in launching Hong Kong’s first token-based real estate fund STO via Pioneer Asset Management. The STO, dubbed PRINCE, is a closed-end fund aiming to raise HK$100 million by issuing exclusive tokens to professional investors.
The funds raised will be used to secure ownership rights of a cluster of five interlinked stores located along Prince Edward Road West in Kowloon. The innovative move aims to lower financing costs for real estate developers and owners, offering a more attractive alternative to traditional funding methods such as bank loans that often come with steep interest rates, sometimes even reaching a staggering 5%.
Benefits and Returns for Investors
The group’s managing director of capital markets and wealth management business, Liang Weijin, clarified that investor returns will not only be derived from rental income but also from anticipated appreciation in property value. The annual dividends, calculated after deducting associated costs, will be distributed among investors based on the rental income from the stores.
As it stands, the project’s entry fee is set at HK$ 1000. Stores with similar rents along Prince Edward Road have been known to yield returns ranging between 2 to 3%.
Virtual Real Estate in Hong Kong
Recently, Hong Kong has shown a bullish stance towards virtual real estate. Earlier in June, Fubon Bank announced its plans to launch a real estate tokenization initiative in the third quarter, in collaboration with Ripple. The bank aims to revolutionize property transactions and streamline operations using Ripple’s technology, which includes tokenizing property liens and facilitating loans in digital Hong Kong dollars designed specifically for this experimental phase.
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