October 2019 – Now really one Security Token Offering follows the other. Brickblock has received the next approval from BaFin and is now officially Germany’s public STO No. 4.
Here, too, there are some special features. As with the STO from Fundament, it is all about real estate. However, while Fundament represents a portfolio, Brickblock is only about one property, namely a residential building at Schönbergstraße 31 in Wiesbaden.
Accordingly, the volume is significantly lower. The value of the property is stated at 2.2 million euros. The majority of this has already been awarded as part of a non-public offer. The STO is now only about the remaining sum of 850,000 euros, which will be collected from small investors. The smallest share is 850 euros.
This brings to bear an advantage of the STO, which actually makes up the charm: tokenisation allows small denominations, which in turn also makes it possible for the broad mass of investors to invest. The return of this STO will be fed by the additional income.
„WIB“ instead of securities prospectus
Due to the comparatively small sum there is another special feature: Brickblock only had to submit a securities information sheet (Wertpapierinformationsblatt = WIB) to BaFin. This comprises a maximum of three pages, which is a huge difference to the securities prospectus. This is due for public securities offers with a total subscription volume of 8 million euros.
A clever move, as we think. We can all imagine how many applications BaFin currently has to process. The path via a WIB seems very lean and efficient here. We will see how many STOs will build on the concept in the near future.
Brickblock’s STO is scheduled to start in the first quarter of 2020. We can well imagine that the shares will be awarded quite quickly. Investments in real estate are interesting for obvious reasons, and the location is well chosen. Wiesbaden is growing and is becoming more and more popular as a place to live and work. The demand for residential space is correspondingly high – and prices, of course, follow. Due to the low initial sum, people can invest in real estate that otherwise lack the funds for funds or even individual investments.
Brickblock itself is a start-up that specializes in tokenizing real estate. The Berlin-based company has strong partners – including the investment company Peakside Capital. Peakside currently manages real estate worth more than one billion US dollars, mainly in Germany and Eastern Europe. So there should be no shortage of supplies.