Leading property consultants West London City Lets has launched its new sub-agency Tokenized Properties to facilitate the sale of a real-world plot of land using a Non-Fungible Token (NFT) for the transaction. This is the first UK property company to support the sale of physical land through an NFT. It is also the first time this style of land sale has taken place in the UK. The land is on sale for one month from 26th September.
Tokenized Properties has partnered with tech firm Mattereum, NFT agency Mint Collective and a team of investors to facilitate the sale, a prime beach-front plot on the south coast of England listed with a reserve price of £1.25m in cryptocurrency. Selling the land as an NFT eliminates the bureaucracy involved in standard property transactions.
The relevant data for the high-value property is stored securely using the Mattereum Asset Passport and held on an immutable public storage platform. The Mattereum Asset Passport bundles together legal rights and guarantees and is paired with Mattereum’s smart contracts. This not only enables the required searches, title deed and reference media for due diligence to be displayed accurately and transparently, but it also streamlines the purchasing process and increases buyer confidence as to the authenticity and value of the property.
This innovative transfer mechanism allows investors to trade an NFT with a physical high-value utility. Those who wish to bid must register via the Tokenized Properties website and once approved they will be sent a link to the sale. Full details of the steps involved are listed on the website.
Investors will be able to trade the NFT as many times as they wish for up to 5 years. However, should the owner of the NFT want to legally take possession of the land, they will have the option to transfer the property with a token purchase of £1.
The purchase includes a sea-facing plot of land in Milford-on-Sea in Lymington, Hampshire. The land has an approximate span of 120mx22m, a 380m perimeter and an approximate area of 2680sqm. Situated on the edge of New Forest District Council, with stunning views of the Isle of Wight, Milford has always been a sought-after area with a thriving creative community.
The NFT will represent the land and the contract. It will not be connected to any planning application. The plot has never been individually sold and therefore no planning permissions have been sought. This gives future buyers the opportunity to create their own vision. 3D designs to develop the site into an art gallery, multiple artist studio pods or a high-end café have been created to provide inspiration to investors.
Idris Anjary, founder of West London City Lets and Tokenized Properties, comments, “NFTs being paired with physical assets is becoming increasingly popular within the crypto-sphere. We truly believe that this is the future of property transactions and are delighted to be embarking on this as our next adventure.”
Mattereum founder and CEO Vinay Gupta says, “Real estate is the biggest asset class in the world, and one of the most stable, particularly in geographically diverse portfolios. But the transaction costs are extraordinarily high, both in terms of diligence on the buildings and the mechanics of legal transfer of title. Innovation in the space to make buying and selling real estate cheaper and easier is going to liberate a lot of dormant potential in the sector. We’re very happy to be working with West London City Lets to show the world what is possible!”