Security tokens can ‘revolutionise’ how Hong Kong, Greater Bay Area property developers fund mega projects, says report
- Their use could serve as an alternative fundraising channel, allowing owners of illiquid assets access to a broader base of investors, report says
- Developers have traditionally tapped bank loans to finance projects, but this has become harder in the wake of credit tightening measures
Security token offerings (STOs) could “revolutionise” the way developers raise capital to fund their projects, providing a shot in the arm for the property markets of Hong Kong and the Greater Bay Area, according to a report.
Their use could serve as an alternative fundraising channel within the property sector, allowing owners of illiquid assets access to a broader base of investors, according to the second edition of a white paper series jointly published by accounting firm Deloitte, digital asset exchange HKbitEX, property consultancy Colliers and law firm Baker McKenzie on Tuesday.
“Real estate STOs could revolutionise capital raising within the real-estate sector,” said Lau Chun-kong, managing director of Colliers Hong Kong.
“Property investors and developers can utilise STOs as a fundraising means across the property life cycle, from greenfield projects, through construction stage to stabilised income-generating assets.”
06:19
High hopes for China’s Greater Bay Area, but integrating 11 cities will pose challenges
