Real estate token launched in city

Tykhe Capital has launched its Prince Token in Hong Kong, the first real estate security token offering or STO as it is called, available to professional investors.

An STO refers to an offering in which a digital token representing ownership in assets or a share of profits of a company, is issued using blockchain technology.

The funds raised from Tykhe's Prince Token offering will be used to acquire a five-unit retail property in Prince Edward.

The tokens are offered by a closed-ended fund managed by Tykhe's unit Pioneer Asset Management and the minimum investment is HK$1,000, compared to the average US$1 million (HK$7.8 million) threshold typically required by private real estate funds.

By holding its tokens, investors are entitled to the annual distribution of rental income generated from the property and the future appreciation of the property's value, the firm said.

A digital wallet will be opened for investors for the allocation and storage of tokens, the firm said, adding that tokens are under the protection of virtual asset insurance provided by a Hong Kong insurer.

Subject to regulatory approval, Pioneer will also seek to list Prince Tokens on HKbitEX, another subsidiary of Tykhe, operating a virtual asset exchange business.

Gao Han, chairman of Tykhe Capital, believes the offering revolutionizes capital raising in the real estate sector of Hong Kong.