Real estate blockchain company LABS Group plans to launch the first-ever timeshare NFT property fund for hospitality-related properties. This will expand the company’s primary business- client advisory, crowdfunding, security token exchange, tokenization, and fractionalization to NFT adoption where hoteliers, resort builders can sell their properties as NFTs.
LABS is a digital investment platform that provides access to fractionalized property ownership and enables the continuous trading of real estate assets-backed tokenized shares on a regulated security exchange.
The company uses blockchain technology and smart contracts to ensure complete transparency over a borderless ecosystem where property developers and investors can interact seamlessly and with unprecedented efficiency.
Non-fungible tokens (or NFTs) are a new type of digital asset that can be bought or sold. Unlike other tokens, NFTs represent a certain value with unique, rare, and indivisible virtual assets. For instance, Beeple’s record-breaking digital artwork sold for $69 million or Jack Dorsey’s first tweet that was sold for over $2 million. In theory, while these “digital collectibles” can still be replicated or shared, owning NFT simply certifies the buyer as the rightful owner of the underlying asset.
In the property market, NFTs have the characteristics to move real estate buying in a non-physical way, thanks to blockchain. Once a property is tokenized, it will be digitally represented on the blockchain with its shares, property rights, and often other terms and conditions written in a smart contract, a self-executing contract where the buyer and the seller agreement lies.
This means when an investor buys a tokenized property their transactions with the seller are ensured to be legally compliant and recorded in a distributed ledger (in a series of “chains” of computers), making any transaction (within the smart contract) immutable.
With LABS Group, property owners can tokenize their property assets, fractionalize NFTs (property shares) and release them under one shared ownership which can help them increase their liquidity ratios while providing a good entry spot for regular investors. The company is doing this by collaborating with property owners as a “GP” (or general partner).
During the process of tokenization, the property owners together with LABS Group will define its terms and conditions (or the smart contract) like profit sharing, staying rights of the buyers, and the overall shares of tokens that the property owners are willing to sell.
After the properties have been tokenized, these will be listed exclusively in Refinable, the world’s first BSC (Binance Smart Chain) NFT marketplace, backed by Binance and Mr. Beast. With this platform, investors, foreign or local (except the US and Hong Kong) could gain access to participate in an auction where the NFT pricing will follow a daily base price. Successful buyers of NFTs will be considered as “LPs” (or limited partners) and will share vacation ownership and profit-sharing rights via the $LABS token.
Currently, LABS Group NFT adoption is in the works with Gravity Hotels, a luxury real estate property company located across the Asia Pacific Region. This ambitious project is the first-of-its-kind NFT adoption project to take place in the hotel & resort market.
“It is inevitable that blockchain will be part of our lives in the near future. It will be integrated into many industries globally, and real estate will not be left out. Gravity, as a resort development company, is proud to take the first step with LABS Group to bring real estate investment into the new age, and to bring exciting, affordable real estate investment products to everyone.” said Bernard Lau, Co-founder of Gravity Resorts.
Successful NFT buyers on this project will be rewarded based on predictable yearly ROIs on all of Gravity Hotels and Resorts investment properties.
Founded in 2018 and based in Hong Kong, the LABS Group is one of the fastest-growing real estate blockchain companies in the world. Early this year, the company received funding from YBB Foundation, which gives the company a valuation of over $6 Million. YBB Foundation’s investment portfolio includes some of the leading blockchain companies like Block.one, VeChain and Enjin. LABS Group has been backed by well-known VC firms in the blockchain scene including Plutus, GBV Capital, and Elevate Ventures just to name a couple.
Yuen Wong, CEO of LABS Group, and its Chairman, Mahesh Harilela are some of the most successful real estate entrepreneurs in Hong Kong. Bringing together their expertise, they’ve built LABS Group with technical blockchain advisors from RioDefi, the builder of RioChain. The company currently works with top blockchain technology companies, like Enjin and Polygon(Matic)Network, KardiaChain to further accelerate the tokenization of its property market.
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