Inveniam Capital Partners, in a recent announcement has revealed that the group intends to tokenize $260 million worth of real-estate. The first phase of which is set to be a $66 million USD property located in Miami.
Inveniam Capital Partners is transforming capital markets by undertaking a deal that is one of the first of its kind: a large, multi-offering placement of real financial instruments in tokenized form to be held in crypto wallets and sold via auction. The $260 million of transactions presents to the crypto and fiat investor offerings of four different projects: a Miami office building acquisition, a North Dakota water pipeline project, a student housing project, and a multi-family housing project in southwest Florida.
Usage of Dutch Auction
The offering will be conducted in a very unique manner in which these digital securities will be sold. Generally, STOs provide investors with the opportunity to buy tokens at a fixed rate and further have limitations on the amount of shares that can be purchased. But, Inveniam Capital Properties have decided to utilize a Dutch auction instead.
A Dutch auction is a type of public offering auction structure in which the price of the offering is set after taking in all bids from investors in order to determine the highest price at which the total offering can be sold. In Dutch auction, investors place a bid for the amount they are willing to buy in terms of quantity and price. Each of these bids will state the quantity of desired shares, and what they are willing to pay for them. After the auction ends, the investors which submitted the best offers will be rewarded with digital securities representative of ownership in the properties.
Regulations and Buying Requirements
Investors can transact in either cryptocurrency or fiat currency. The private placements will be conducted in accordance with SEC Rules 144a and 506c. Each token will represent $50,000, with a minimum round lot purchase of $500,000. All standard AML/KYC processes for Qualified Institutional Buyers and Qualified Purchasers will apply to these transactions.
This offering is for offers and sales to US persons. Non-US persons may invest through the relevant dealers who are part of the distribution network. These dealers will provide proper indemnification to Inveniam through the soliciting dealer agreement.