STOs will bring greater efficiency to real estate transactions and facilitate the creation of more innovative investment products with real estate as the underlying assets.
In the first of a series of three Real Estate STO whitepapers jointly developed by Deloitte China, Colliers’ Valuation & Advisory Services team, HKbitEX and Sidley Austin, we discuss the increasing use of tradable tokenised digital securities known as ’security token offerings’ (STOs) and its potential adoption in the real estate sector.
With the region’s transaction volumes tipped to see a strong rebound in 2021, the use of STOs is expected to rise exponentially and boost liquidity in the Asia Pacific property investment market.
Key takeaways of the whitepaper:
- The use of STOs as a dynamic new asset class creates an additional avenue for companies to raise capital and facilitates direct ownership of property assets
- The benefits of STOs for real estate investors include greater efficiency, lower costs and access to a broader investor base, while offering fractionalised interests in property assets, higher liquidity and enhanced information transparency
- New developments in government policies in Hong Kong SAR, including revitalisation of the REIT regime and the launch of new Limited Partnership Funds will help drive robust growth in the adoption of STOs
Download the whitepaper below. For further insights on this report or advice on STOs across Asia, reach out to our expert C K Lau.