Peakside and Brickblock launch blockchain-based real estate fund

Peakside Capital Advisors has partnered with tech firm Brickblock to launch the first blockchain-based real estate fund. Through tokenisation, the partnership plans to attract a global pool of investors by creating a product that is more accessible than traditional funds. Tokenised funds are based on software that automatically verifies transactions and contracts. Using blockchain means those contracts – known as smart contracts – are immutable and irrefutable without the need for middlemen, such as lawyers. Peakside Capital said the automated processes behind the fund would make investment cheaper and more efficient than currently available structures. Blockchain-based solutions…increase the ease of access for different classes of investors and transparency in global real estate markets There are various blockchain-based cryptocurrencies that already invest in real estate. However, these are largely unregulated, unlike the Peakside Capital and Brickblock fund, which seeks to be compliant with securities regulations. If successful, the fund would be a step towards opening up the crypto world – which has shunned regulation and has a mixed track record in delivering products as promised – to institutional investors who want certainty. Stefan Aumann, founding partner at Peakside Capital, said: “Blockchain-based solutions, such as those provided by Brickblock, will transform the real estate sector as they increase the ease of access for different classes of investors and transparency in global real estate markets. “This strategic partnership marks a turning point in real estate investment management, as it will be one of the first democratised investment products.  “The idea is to provide attractive, professionally managed investment products that fully comply with any applicable regulation to a broader investor base using state-of-the-art blockchain technology.” To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @karltomusk or @estatesgazette