How it works

By participating in the property fundraising, users can buy shares in a specific property for UST and receive Real Property Tokens (RPTs).

Real Property Tokens are the confirmation of purchasing shares for a specific property through the Terra Land platform.

After the successful completion of the fundraising, a new separate legal entity is created for the new property. For each of the new properties a special purpose vehicle is established.

In the event the full amount is not collected in the given time frame, the smart contract automatically returns the funds to the investors.

By purchasing shares in a specific real property, you conclude a preliminary contract for the shares of the company that will own the real property. Tokens assigned to a given property constitute confirmation of your option.

Investors also have the possibility of exchanging their RPTs for physical shares in the legal entity at any point. Each investor who wants to perform the preliminary contract and become the official company owner will be able to do that at any moment by undergoing the appropriate procedures for taking up shares in accordance with the regulations of a given country.

After executing the option, the tokens have to be returned by the investor to the company and they will be burned. Taking up shares requires the investment to be managed according to the rules applicable in the traditional real property market, also in the context of investment liquidity.

All real estate on the Terra Land platform is hand-picked to ensure stable returns for the owners without a need for them to get involved. We have a thorough vetting process each property has to go through to meet our standards, and pass our due diligence process. This provides investors certainty that each investment asset is verified, especially under economic aspects. To ensure this, we cooperate with specialized operators who manage the lease of the premises. Investors who acquire a 100% share in a given investment will be free to choose to use the premises differently.

Purchasing RPTs through the Terra Land platform is simple, seamless, and lightning quick. This removes all those disadvantages of the traditional real estate market we mentioned earlier while allowing investors to diversify with a click of a button.