Baker McKenzie’s Hong Kong team advised UK property developer Knight Dragon and its subsidiary KD Tokens to raise £140m ($171.4m) via tokenization, allowing individual investors to share in the revenue tenants of a residential tower in central London.
Joy Lam, partner and virtual asset specialist, led the team that advised the deal on Building 4 in the Upper Riverside development, with help from partner Deanna Liu and registered foreign attorney Ryan Chan .
Knight Dragon is chaired and majority owned by Hong Kong billionaire Henry Cheng Kar-shun. The company is selling 100,000 tokens at 1,400 GBP each. This transaction involves the minting of digital tokens that allow token holders to share 80% of the gross profit generated from the tower’s rental income.
“The Knight Dragon building tokenization is a game-changing transaction that transforms a traditionally illiquid asset into an efficient and transparent investment product accessible to a broad base of investors,” Lam said. “This innovative transaction clearly demonstrates how blockchain technology can be leveraged by forward-thinking asset owners.”
