Munich – RAAY Real Estate GmbH, a joint venture between digitalisation and real estate companies Datarella GmbH, Hammer AG and WERTGRUND Immobilien AG, has issued Germany’s first digital investment product. RAAY Real Estate has developed a blockchain-based security token that is technically similar to a cryptocurrency. It represents claims against a real estate company that holds the Connex office and commercial building.
A CMS team advised RAAY Real Estate on all legal aspects of setting up the security token in a compliant manner, gaining approval for the associated investment fact sheet and thus authorisation as an investment product, obtaining the necessary brokerage licences and structuring the digital distribution channels.
The three partners are using RAAY Real Estate as a vehicle for developing innovative solutions for the European real estate market based on blockchain technology.
RAAY Real Estate designed the Connex Coin security token and built a platform for token sales on the basis of the RAAY Digital Operating System. Other products and services are in the pipeline. These are aimed at enabling new business models and streamlining complex and inefficient processes around investing in real estate. The Connex property in Munich comprises 21,500 square metres of rental space. It has been held in the Hammer Group’s portfolio since 2015 and is let on long-term leases to financially strong companies. The building has a current market value of approximately EUR 100 million.
Dr Markus Häuser, Partner
Dr Markus Kaulartz, Counsel, both TMC
Jörg Baumgartner, Counsel, Banking & Finance