Real estate tokenization – Sales of 20 thousand shares of the most expensive apartment in Poland at 44 Złota Street
Publication date: April 15, 2024
Facts
At the beginning of 2024, the residents of the luxurious Złota 44 skyscraper were surprised with the information when the owner of the most expensive apartment presented an innovative idea called “Epic Flip”. The “epic flip” involves dividing an apartment worth PLN 23 million into 20,000 shares and selling them using tokenization technology. Each share will be available for PLN 5,000, $bigSB 777 or 504 NFT AIRdrop for all interested parties. The order of sale will be determined based on records and the originality of the motivation to purchase the share. There is no limit to the number of shares that can be acquired by individuals, but companies must have at least 10 shares. The owner reports that over 6,572 people have expressed interest in purchasing over 48,954 shares. The owner of the apartment was the first in Poland to use the tokenization mechanism in the context of real estate, thanks to which the purchase of a share in the apartment became available to a larger number of investors. Tokenization makes it possible to divide the value of real estate into digital tokens that can later be sold individually, which is completely different from the traditional real estate market, where transactions involve the transfer of entire rights to the premises. The owner responded to allegations regarding legal issues, claiming that the transaction is legal and regulated mainly by the section of the Act of April 23, 1964, Civil Code (uniform text: Journal of Laws of 2023, item 1610, as amended) regarding co-ownership. The owner also emphasized that the main goal of the project is to test the social reaction to the innovative model of co-ownership. Another practical problem is the issue of entering so many owners in the land and mortgage register, which may take years. One solution is for smaller shareholders to send proxies, but this may cause additional problems. Finding a notary who will undertake such an operation can also be a challenge, requiring a lot of time and effort.
