Knight Dragon Investments Limited, a property developer in the United Kingdom has launched first property tokenization project in Central London. KD Tokens Limited, a Knight Dragon subsidiary, will take on the venture, expected to fetch £140 million. “KDB4 Tokens” have been issued and token holders will get 80% of the gross profit from this great Central London real estate development.
Knight Dragon’s tokenisation and what it brings to the real estate market
The Greenwich Peninsula, with its 17,000 new dwellings, 13,000 new jobs, and 48 acres of open public space, is quickly becoming London’s most avant-garde landscape. Knight Dragon has tokenized the commercial interests in the Upper Riverside Development’s Building 4, which contains 191 apartments. The landmark Greenwich Peninsula construction is located in the middle of the building. Each KDB4 Token owner will receive a share of the profits generated by Greenwich Peninsula Building 4.
Legal implications and a solution to property transfer
Atom 8 Limited, a Web3 technical consultant, oversaw the creation of the asset-backed KDB4 Tokens. Furthermore as a result, the tokenization is in accordance with Baker McKenzie and Deloitte’s legal framework. As per the legal document, the tokens will be equivalent to securities. Building 4’s audited, audited cashflows serve as the foundation for the Knight Dragon token system. Additionally, the token’s simplicity and transparency benefit investors. This is because it symbolizes the revenues from a premier Central London real estate development.
Sammy Lee, the company’s founder and vice chairman, remarked in a speech in Hong Kong:
“The tokens represent a specific share of an underlying asset. In this case, ownership of KDB4 Tokens will represent a fractionalised interest in a contractual right to share in the gross profit of Building 4. Building tokenisation is set to revolutionise the global property industry and we are pleased to be a leader in this revolution.”
Additionally, holders of KDB4 Tokens are also instantly eligible and whitelisted for future Knight Dragon initiatives on the Greenwich Peninsula. This gives them the first opportunity to invest in, or acquire, future Knight Dragon products. Additionally, tokenisation may be able to tackle the biggest difficulty in real estate: asset liquidity. The legal transfer of property typically involves a number of parties. Because tokenisation removes the need for a third party, transfer of ownership can take place directly from one investor to the next.