BaFin, Germany’s financial regulatory authority, has approved the first Security Information Sheet (SIS) which will allow retail investors to participate in a real estate security token offering. Brickblock’s technology is currently being used by Peakside Capital to manage a real estate investment vehicle with an equity target of €200 million, and by Uavend Property and Leisure to manage a vehicle carrying a €35 million property in the United Kingdom.
BaFin, Germany’s financial regulatory authority, has approved the first Security Information Sheet (SIS; in German: “Wertpapierinformationsblatt”) for a public security token offering in Germany. The security token offering represents profit participation notes for a real estate property in Wiesbaden, Germany. The real estate is valued at €2.2 million. The notes’ returns correlate with the rental income of the property’s special purpose vehicle (SPV), Property Schönbergstraße 31 GmbH. An SIS is required for public securities offerings in Germany with a total aggregate subscription volume of up to €8 million. Offerings worth €8 million or more require a full prospectus. The security tokens are registered on the blockchain in a process commonly referred to as ‘tokenisation’. ‘Tokenisation’ allows for small- and medium-sized enterprises (SMEs) to access the capital market with less financial and bureaucratic overhead.