UK developer backed by Hong Kong tycoon Henry Cheng eyes US$171 million in tokenisation plan for London residential tower
- The investment scheme involves a residential tower in central London’s Greenwich Peninsula area
- London-based developer Knight Dragon is offering 100,000 tokens worth £1,400 each to investors with a projected yield of 3 per cent to 3.5 per cent
A UK developer backed by Hong Kong billionaire Henry Cheng Kar-shun is planning to raise as much as £140 million (US$171.4 million) via a tokenisation plan, allowing individual investors to share the income from a residential tower in central London.
“Investors can potentially share the economic interests of the rental income of the 191 units” in the tower, Lee, vice-chairman of the UK developer, told the Post on Tuesday. Called KDB4 Tokens, the digital asset offers a projected annual return between 3 and 3.5 per cent. As with any other risk assets, returns are not guaranteed, Lee added.
This is the first time that a property in central London has been tokenised, Lee added. Law firm Baker McKenzie advised the firm on the legal structure, while Deloitte was consulted for finance and tax issues, Lee said.
The investment scheme could be likened to a digital real estate investment trust (REIT) in that it promises to share the property’s rental income.