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Dominican company La Estancia offering a $75 million, real-estate backed STO

Dominican company La Estancia offering a $75 million, real-estate backed STO

A young Caribbean-based company is offering foreign investors a chance to buy $75 million worth of tokenized real-estate assets. The extended STO, which first launched in July, will be divided into three phases and last until 2020, enabling investors to buy stakes in oceanfront properties in the Dominican Republic.

Company announced a $75 million STO

While blockchain has penetrated almost every niche, real-estate has been one of the first industries to see its benefits. The benefits of tokenizing real-estate have long been debated in the crypto industry, with more and more security token offerings being launched each year.

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A young company has also caught on to the trend, offering investors a chance to luxury real-estate in the Carribean in the shape of security tokens.

La Estancia Holdings, a Dominican-based company focused on applying blockchain solutions to real-estate, has announced an ambitious roadmap of three digital security offerings (DSO) worth $75 million. In a press release shared with CryptoSlate, the company said it offers investors the chance to own large or small fractional stakes in “trophy real-estate.”

First launched in July, the digital security offering will run across three separate phases until the first quarter of 2020, and include more than 380 properties. The company claims the offerings will provide low-risk, high-return yields and a fast and inexpensive way to obtain citizenship in the Dominican Republic.

Breaking down barriers to real-estate investment

The second phase of La Estancia’s STO will trump its July offering, both in the size of the portfolio and the number of units offered. Last month, investors had a chance to snag a piece of the $10.7 million portfolio, consisting of 22 townhomes, villas, and cottages in the La Estancia Golf Resort in La Romana, Dominican Republic.

The following phase will take place during the final quarter of 2019 and feature 123 residential units worth more than $20 million dollars. The final phase of the offering will begin in early 2020, the company said, and will offer investors a chance to own a fraction of a new hotel development in the same resort.

Laurent Chemla, the company’s head of blockchain strategy, said La Estancia sees leveraging blockchain technology “as the best way to make real-estate investments more accessible to everyone.”

However, we are yet to see whether the company is able to bring its ambitious plans to fruition. While the Dominican Republic is an attractive destination, La Estancia could have a tough time reaching the right blockchain-savvy audience to sell out all of its tokenized assets.

Posted In: STOs

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Priyeshu Garg

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

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