Brickmark buys property on Bahnhofstrasse with tokens
Real estate investment company Brickmark said it has made its largest real estate purchase to date using tokens.
The property at Bahnhofstrasse 52 in Zurich was acquired; according to Brickmark, the transaction volume amounts to more than CHF 130 million. A "significant portion of the purchase price" will be paid in Brickmark tokens, the company writes in a statement.
The property has a rental area of more than 1,600 sqm. The majority of this is currently used as office space, while around 15% on the first floor is retail space. By redesigning individual areas, the retail space is to be increased by a factor of about six without reducing office capacity. Brickmark expects the measure to more than double total annual rental income. The permitting process will begin immediately, and construction is expected to be completed in about 24 months, the company said.
The acquisition is constructed as a share deal and Brickmark initially acquired 80% of the shares of Bahnhofstrasse AG with a call option on the remaining 20% within nine months. The seller RFR Holding will retain a 20% stake in Bahnhofstrasse AG and will manage the redevelopment of the property.
With the acquisition of Bahnhofstrasse 52, Brickmark will reportedly close a financing round of more than 50 million euros with international investors. The purchase is intended to be a first step in building a large-scale international real estate portfolio, the company said. To that end, Brickmark plans to use its own tokens as its preferred financing tool. (ah)
