PILOT

REPORTAn overview of the world’s first real estate tokenization pilot using Blocksquare’s PropToken standard.

TABLE

OF CONTENT

About Blocksquare

Pilot overview

Property overview

Certified partner

Facts & figures

ABOUT

BLOCKSQUARE

Blocksquare is a startup developing the world’s leading blockchain-based tokenization system for commercial real estate properties. Headquartered in Ljubljana, Slovenia (EU), the company is developing its state-of-the-art system in close co-operation with Medius - the leading provider of enterprise software solutions in the region.

Visit:blocksquare.io

medius.si

With global commercial real estate valued at roughly 50 trillion USD, tokenized commercial real estate properties are set to become one of the biggest online value exchange markets.

Blocksquare’s mission is to create the world’s easiest and most secure real estate tokenization system, enabling asset management companies to not only create and issue tokens linked to commercial real estate properties, but also seamlessly distribute rental yields to 100s of stakeholders.

We believe borderless trading without intermediaries, no centralized point of failure and no downtime will push even the more conservative investors towards the adoption of tokenized CRE.

Denis Petrovcic

CEO & co-founder

PILOT

19investors

16days

8countries

OVERVIEW

The project’s primary objective was to test the beta version of the PropToken system in a real-world environment. The small size of the property, a single garage parking space in Technology Park Ljubljana, facilitated the funding process that lasted 16 days and enabled our team to focus mainly on the execution rather than investor relations.

The property was successfully tokenized by NDP asset management, a small local real estate management company, who distributed PropToken shares (BSPT) to 19 investors from 8 different countries. The company now holds title to the tokenized property, manages tenants and utilizes the PropToken system to distribute rental yields to stakeholders in the tokenized property.

The system automatically tracks and records stakeholders even when PropToken shares (BSPT) are traded on the secondary exchange markets, enabling NDP to distribute dividends with a single action, while investors are free to manage their individual stake in the property without the exit limitations of traditional co-investment vehicles like a syndicate.

With PropTokens investors have finally a new option offering greater control, better diversification, 24/7 liquidity, and high-grade transparency.

PROPERTY

OVERVIEW

In search for the right property tokenization opportunity, we identified a single parking space with 6-12 month lease contracts can represent the minimum viable property to showcase Blocksquare’s system on a real life example.

Technology Park Ljubljana was established in 1996 and is the largest innovation ecosystem for commercialization of knowledge and technology in SE Europe. Under its umbrella, Technology Park Ljubljana brings together over 300 companies with more than 1,400 employees. The organisation offers its members full entrepreneurial support, including the search for business and strategic alliances.

Location: close vicinity (500 m) to the motorway ring, while the city centre is 5 km away.

Smart city for 300+ member companies, innovative teams and individuals

75.000 m2 of high-quality infrastructure, hosting 300+ member companies with +1.500 employees

CERTIFIED

PARTNER

Blocksquare offers real estate businesses (certified partners) a token issuance system that can be linked to specific real estate properties. Blocksquare as such never holds any real estate property under its name, nor does it issue any token linked to the property. As a technology provider it needs certified partners to adopt its proposed tokenization standard.

NDP, real estate management, is a company established in 2015 by Blocksquare’s co-founder Denis Petrovcic. The company currently manages real estate properties for private investors and will take on the role of certified partner to acquire and lease the property for this pilot project.

NDP used Blocksquare’s system to create a PropToken contract linked to the property and issue 100,000 BSPT. NDP will use the system to distribute rent proceeds to BSPT holders, while Blocksquare will provide a decentralized exchange where BSPT tokens can be freely traded.

To adhere strict regulatory policies, buying BSPT directly from NDP has been limited only to Blocksquare registered users who went through KYC/AML verification.

FACTS

& FIGURES

70%

23%

7%

4

7

8

No. of investors by stage

Private pre-sale Public pre-sale Crowdsale

70%

23%

7%

Total

invested

by stage

Stage duration

3 days

7 days

7 days

UK

Portugal

Canada

Russia

Australia

BrazilGermany

Netherlands

Slovenia

Investors by country

19investors

16days

8countries