Kodo Assets Introduces New Way To Invest In Real Estate Through Tokenization and Blockchain Technology

A Brazil-based blockchain and real estate project has recently announced the launch of a real estate tokenization platform: Kodo Assets. Attentive to the demands of the real estate market and the evolution of blockchain technology, Kodo Assets, a real estate tokenization platform – which comes to the market to democratize access to real estate investment, help increase the liquidity of said assets and reduce barriers to access to this market, either due to high transaction costs or bureaucracy – , announces its first real estate tokenization project in Brazil.

Tokenization allows properties to be divided into countless small digital pieces, which can be sold to many people for a relatively low unit price, thus democratizing access to this type of investment. With tokenization, it is possible to invest more accessible amounts in exchange for real estate asset tokens. The real estate token is a low risk investment compared to stocks or crypto assets and has a lower entry level cost as the minimum ticket cost for investment is lower compared to the real estate market. The token market operates globally, 24/7, and the liquidity of KODO1 tokens has been estimated to be considerably higher than investing directly in traditional real estate units.

The first property to be tokenized by Kodo Assets is a commercial property located on Avenida Faria Lima, a privileged area of ​​the city of São Paulo, and its total area is 1,144.52 m², with a BOMA gross area of ​​552.58 m² , private area of ​​473 m². and common area of ​​671.52m². Currently the entire complex is rented by a large multinational.

The main income expected to be received from this property is rent. The token’s annual return expectation is, with all discounts included, 6% until June 2023, and 6%+ annual rent adjustment using IGPM. The resulting value after fees will be distributed as dividends to KODO1, which issues the tokens representing the inherent rights of ownership. To do this, Kodo Assets will be in charge of distributing the income of the owners of each token to their own wallets, considering the participation of each one in this undertaking. Payment of proportional profits to token holders will be made using USDC Stablecoin, the most credible and transparent stablecoin in the cryptocurrency market. Payment will be made to the same wallet that contains the KODO1 tokens at the time of distribution.

“The owner of the KODO1 token will be entitled to receive dividends from the income of this property, proportionally to his participation in the tokens against the total number of tokens issued by the project and an eventual sale of the underlying real estate, which may generate a interesting gain”. – summarizes Ciro Iamamura, the CEO of Kodo Assets.

The company will issue a total of 25,000 tokens for this property, each sold for $140.00, plus KYC/AML verification costs, which amounts to $13 for a single person, or $25 for a legal entity. The minimum purchase value is 1 KODO1 token, and there are no limits to the amount that can be purchased. The total value of the offer is US$ 3,500,000.00. Sales are expected to occur around November 2022.

Through blockchain technology, the idea is that the company can collaborate with this revolution in the real estate sector, allowing investors to acquire real estate quickly and safely, without the bureaucratic procedures and high costs of the traditional market, and having access to different markets around the world.

“We are talking about global access to markets that, until now, were local, limited by the geographical location of the properties or because they were only available to qualified investors. In this sense, the digitization of real estate can facilitate access to these investments, as they are available to people around the world. We believe that asset tokenization can be instrumental in revolutionizing this market around the world.” Cyrus highlights.

The property, located on Avenida Faria Lima, is only Kodo Assets’ first project in Brazil. According to Helena Margarido, advisor to Kodo Assets, there is a growing and justified demand for real estate in São Paulo. “The average price per square meter in the city center is around US$2,613,042. However, if we consider some of its sister cities, we can find, for example, Chicago, with an average price of US$4,137,144, and Lisbon, with an average of US$5,239,255. Therefore, it is plausible to believe that the value of real estate in São Paulo is (very) undervalued. In other words, believing in a growing appreciation of real estate for this city in the coming years is a natural conclusion when we see the importance of São Paulo in the world and the average prices in similar cities.”

Kodo Assets Tab

To gain access to the Tokens, the investor must go to the official Kodo Assets website, fill out a personal information form, submit documents, and go through the facial recognition process. After KYC/AML (know-your-customer and anti-money-laundering) verifications and registration approval, user can purchase as many KODO1 tokens as desired. Payment can be made in USDC, USDT and BUSD, as long as they are made on networks that support EVM. The token transfer will happen as soon as the tokens are available and will be sent to the same wallet where the resources used to pay for the token come from. For KYC/AML reasons, under no circumstances will the token be transferred to a wallet that has not been submitted to the verification process.

Whoever owns the token has access to all the information related to it stored in the blockchain and available for consultation, if necessary. Even if the asset is sold hundreds of times, it is possible to trace each transaction and easily find the current owner. This feature brings transparency and reliability to transactions.

“The use of smart contracts makes brokering to trade and register the tokens useless. In addition to reducing costs by not needing a third party, the entire process becomes much more agile and efficient. In this sense, tokenization can increase efficiency and drastically reduce the costs of each transaction, TOKEN that strengthens the market as a whole”, says Ciro Iamamura.

About Kodo Assets

Believing that tokenization can solve the biggest problems in the real estate market, Kodo Assets was created. Through tokenization, the objective is to democratize investors’ access to the real estate market, help increase the liquidity of said assets and break down barriers to access different markets, whether due to high transaction costs or bureaucratic procedures. Company tokens will be created and distributed in accordance with Bahamian law which, by their nature, classifies them as security tokens. Thus, as they are considered securities, the process is subject to an intense and meticulous regulatory process. Polygon will issue the Kodo token using a smart contract platform and grant its holders equal shares of ownership rights, proportional to the number of tokens purchased. Polygon is used to issue tokens because it is one of the most promising blockchain infrastructures, with a large community of developers, companies, and organizations dedicated to strengthening and maturing the technology and its applications.

Read other stories: DBS Introduces Singapore’s First Programmable Money Live Pilot for Government Vouchers

Singapore FinTech Festival kicks off with 850+ expert speakers and 450 FinTech exhibitors