Patel Actual Property Holdings (PREH) has launched a $100 million tokenization fund on the Chintai blockchain, aiming to present accredited traders entry to institutional-grade actual property alternatives.
The brand new PREH Multifamily Fund is a tokenized funding automobile centered on classic Class A multifamily items throughout the highest 20 US development markets, the corporate instructed Cointelegraph on Might 12.
“All the construction is digital-native from the beginning — compliant onboarding, reporting, capital calls, and (potential) secondary market transfers,” a PREH spokesperson mentioned.
The fund is a part of a broader $750 million funding automobile co-developed by PREH and a number of other institutional corporations, together with Carlyle, DRA Advisors, Walton Road Capital, RPM and KKR. Initially, the corporate mentioned that $25 million of the $100 million allocation can be tokenized on Chintai.
In accordance with PREH, the tokenization construction helps alleviate many transparency and liquidity constraints traders sometimes face in personal market placements.
Based in 2010, PREH is a nationwide actual property asset supervisor that oversees a portfolio of Class A multifamily properties. The corporate owns and operates actual property investments, overseeing the acquisition, financing and administration of properties.
Since its inception, PREH has accomplished greater than $500 million in actual property transactions.
Chintai is a tokenization-focused layer-1 blockchain that additionally powers the R3 Sustainability Fund for environmental, social, and governance (ESG) investing. Its native token, CHEX, is presently valued at $0.24, with a complete market capitalization of $244 million, in line with CoinMarketCap.
“We selected Chintai as a result of they provide a totally regulated, institutional-grade platform purpose-built for tokenizing real-world property,” PREH’s president, Tejas Patel, instructed Cointelegraph in a written assertion, including:
“Their expertise permits us to keep up the best requirements of compliance and investor protections whereas introducing the efficiencies and entry benefits of blockchain.”
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Tokenizing actual property
Tokenizing actual property has lengthy been seen as a option to modernize property funding, however till just lately, real-world examples have been uncommon.
By early 2025, actual property tokenization had gained traction throughout North America and the United Arab Emirates, whereas efforts are underway in Europe to ascertain regulatory frameworks that assist its development.
One of many greatest catalysts for tokenization is the “capability to eradicate the illiquidity low cost on actual property,” Polygon CEO Mark Boiron instructed Cointelegraph in March.
The expansion of liquid secondary markets for fractional actual property might considerably strengthen that benefit.
This motivation additionally drove RWA platform DigiShares to launch the REX market on Polygon earlier this 12 months, that includes two luxurious property listings in Miami, Florida.
Efforts are additionally underway to tokenize industrial actual property, with Blocksquare and Vera Capital just lately partnering to supply fractional possession of greater than $1 billion price of properties.
Towards this backdrop, consultancy agency Deloitte has forecast that $4 trillion price of actual property shall be tokenized on the blockchain over the following decade.
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