Residential propety

Baker from Hong Kong in the tokenization of London’s residential tower

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.”

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