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PREH Multifamily Fund Launches Tokenised Real Estate Investment
Patel Real Estate Holdings (PREH) has introduced the innovative PREH Multifamily Fund, a tokenised investment aimed at accredited investors. This launch marks a significant development in facilitating access to high-tier real estate investments through Chintai’s Layer-1 blockchain.
Key Highlights:
- Initial Fund Size: The fund has an overall target of US$100 million (approximately AU$157 million), with plans to digitise an initial US$25 million (around AU$39 million) focused on vintage Class A multifamily units in the United States’ 20 fastest-growing markets.
- Larger Investment Vehicle: The PREH Multifamily Fund is part of a more extensive investment vehicle worth US$750 million (approximately AU$1.17 billion), developed in collaboration with notable institutional partners, including Carlyle, DRA Advisors, Walton Street Capital, RPM, and KKR.
Digital-Focused Investment Strategy
A spokesperson for PREH stated that the fund is entirely digital-native, featuring compliant onboarding, reporting, capital calls, and potential secondary market transfers. This approach aims to increase transparency while overcoming liquidity challenges that investors often encounter in traditional private markets by utilising Chintai’s sophisticated Layer-1 platform.
Tejas Patel, President of PREH, underscored the choice of Chintai due to its regulatory robustness and capability for tokenising real-world assets, saying:
“Their technology allows us to maintain the highest standards of compliance and investor protections while introducing the efficiencies and access advantages of blockchain.”
Chintai’s blockchain not only aims at tokenisation but also supports environmental, social, and governance initiatives, such as the R3 Sustainability Fund. As of now, Chintai’s native token, CHEX, is priced at US$0.24 (about AU$0.38), with a total market capitalisation of US$244 million (approximately AU$380.8 million).
Modernising Real Estate Investment
The launch of the PREH Multifamily Fund is part of an escalating trend in the tokenisation of real estate assets, observed across the US, UAE, and Europe. This strategy presents an opportunity to overcome the traditional illiquidity discount associated with real estate investments, as per insights from Polygon CEO Mark Boiron.
Various firms, including DigiShares and Blocksquare, are already making strides in the tokenised real estate marketplace, targeting luxury and commercial properties respectively. According to Deloitte’s projections, a staggering US$4 trillion (about AU$6.28 trillion) worth of real estate is expected to be tokenised globally by 2035.
PREH’s initiative signifies a transformative movement within the real estate investment sector, combining the reliability of institutional-grade assets with advanced digital infrastructure. This evolution aims to enhance transparency, unlock liquidity, and broaden access to investors.
In summary, the PREH Multifamily Fund stands as a beacon of innovation in real estate investment, paving the way for future developments in tokenisation and digital asset integration within the real estate sector.
