Tokenization allows global investors to achieve up to 20% APR LandOrc platform
VC Circle estimates that the real estate funding gap in India is at US$100 billion, most of it being in the 104 Tier 2 cities, representing 75% of the country’s aggregate GDP, noted the United Arab Emirates-headquartered LandOrc, which is tokenizing lending to the real estate industry and redefining the industry.
But the real estate activity in the Tier 2 and 3 cities are experiencing the highest growth rate, especially in the smaller scaled projects, said LandOrc, which is focusing specifically on this segment by tapping into alternate funding available from the large capital base within Decentralised Finance (DeFi) and crypto assets of US$2.2 trillion, globally.
Offering lending with an average deal size of US$150,000 per project and with tenures of less than six months to fill the funding gap in Tier 2 and Tier 3 cities. The low value, high volume and fast turnaround of projects offers risk mitigation to lenders. Ensuring a high debt scenario for a single property developer like Evergrande is unlikely to happen. Additionally the lending is secured against a land collateral, held via a Non Fungible Token (NFT) on the blockchain, explained LandOrc in a release on 13 Oct 2021 out of Dubai.
The transparency and speed of a blockchain based approval system ensures that the property developers are able to access lending at a faster time frame and the cost of capital is lower than what is available locally. Thus LandOrc is enabling the reduction of the cost of housing and providing a growth driver to the real estate industry.
The LandOrc team on-ground has deep experience in real estate and finance to ensure that the lending process is done within local regulatory frameworks and is scalable over time.
This tokenization of lending allows for global investors to participate from the comfort of home to achieve up to 20% APR (annual percentage returns) on the LandOrc platform.
The real estate industry globally has been facing a funding gap despite all the governmental quantitative easing efforts during the pandemic. Most of the benefits from the easing have been targeting end consumers and individuals and not the businesses. This has further accentuated the funding gap already faced by real estate developers prior to the pandemic, said LandOrc.
Based on an expected APR of up to 20% the LandOrc utility token LORC is expected to grow by three times based on independent analysts using dividend discount model.
LORC tokens have high liquidity and offer secondary market exposure having been already listed on Uniswap and with upcoming listing in large centralised exchanges like Coinsbit and Bitforex scheduled in October, and few more in upcoming months. #investment #banking #economy #developments #housing #projects /fiinews.com
