A £1.9m plot of beachfront land at Milford is set to be traded in digital form – in what’s believed to be a UK first.
Instead of being bought and sold in a conventional way through estate agents, the 120-metre by 22-metre site will be ‘minted’ as a non-fungible token (NFT).
NFTs are unique digital tokens which are often virtual items but can also represent physical assets such as artwork and property.
The beachfront land at Milford is being sold as an NFT
They exist on blockchain: an online record of transactions made through cryptocurrency such as bitcoin, which is nearly impossible to hack.
Selling this way can remove a host of transaction costs, but the NFT market can also be extremely volatile.
The Milford NFT can be traded for up to five years, after which the owner will automatically take legal possession of the land. However, they can do this early if they choose, with a token purchase of £1.
CGIs have been made to ‘inspire’ potential investors
The value of the NFT is not directly tied to that of the land and does not come with planning permission.
The agency in charge of the sale, Tokenized Properties – set up by property consultants West London City Lets, has revealed a raft of CGI designs of an art gallery, studio pods and high-end cafe on the coastal site to “provide inspiration to investors”.
However, buyers are urged to “make their own investigations and due diligence”.
The land measures 120 metres by 22 metres
Idris Anjary, founder of West London City Lets, said such trading was the future of property transactions: “NFTs being paired with physical assets is becoming increasingly popular within the crypto-sphere.
“We truly believe that this is the future of property transactions and are delighted to be embarking on this as our next adventure.”
Tokenized Properties has partnered with tech firm Mattereum for the sale.
Tokenized Properties was set up by property consultants West London City Lets
Its founder and chief executive Vinay Gupta said: “Real estate is the biggest asset class in the world, and one of the most stable, particularly in geographically diverse portfolios.
“But the transaction costs are extraordinarily high, both in terms of diligence on the buildings and the mechanics of legal transfer of title.
“Innovation in the space to make buying and selling real estate cheaper and easier is going to liberate a lot of dormant potential in the sector.”
Those interested in bidding in the online auction for the NFT must register and satisfy a series of checks. The sale date is 26th September.
For more information visit tokenized-properties.com
https://www.advertiserandtimes.co.uk/news/milford-beachfront-plot-to-be-traded-as-digital-token-in-uk-9273945/
