Tokenised bond: area2invest enables private investors to invest into holiday homes on Mallorca
Ruggell, July 15, 2020 – The holiday season has started and international travel is possible again due to the opening of the borders. Mallorca is and will remain a popular holiday destination. On Europe’s issuance marketplace area2invest (www.area2invest.com), investors from Germany, Austria, Switzerland and Liechtenstein have been able to invest in holiday properties on Mallorca via a tokenised bond since 1 July 2020 and at the same time receive a voucher for the next holiday on the Balearic Island. With the proceeds from the issuance of PALM Tokens, the issuer Palmtrip GmbH acquires and manages several properties on Mallorca, which are rented out for holiday use.
This is possible through a tokenised bond, which Palmtrip GmbH issues on area2invest in the form of security tokens, the so-called PALM Tokens. These are electronic securities, which are represented by a blockchain. Tokenised financial products are represented purely digitally and can be subscribed without the involvement of financial intermediaries. This allows token issuances to be processed much more quickly and cost-effectively for issuers and investors.
Offer for both retail and professional investors
The bonds offer investors a fixed interest rate of 4.25 percent per year with a minimum term of five years, supplemented by a variable performance-related component from rental income. In addition, the first 300 investors who subscribe to PALM Token for at least 1,000 Euros on area2invest will receive a voucher for over 500 Euros. This voucher can be redeemed in the coming low season in the holiday properties invested.
“With the minimum subscription of 500 Euros, we are deliberately aiming at private investors, who thus have the opportunity to invest even small amounts at a fixed interest rate”, explains Patricia Sommerlad, founder and managing director of Palmtrip GmbH. “Whoever subscribes to our PALM tokens via area2invest for 1,000 Euros has also already financed a good part of his next holiday on Mallorca in one of our holiday properties with the 500 Euro voucher”.
area2invest as exclusive sales partner for Switzerland and Liechtenstein
The PALM Token by Palmtrip is the first tokenised financial product on area2invest, also aimed at private investors. “We are pleased that Palmtrip has chosen area2invest exclusively as its issuance and distribution platform in Switzerland and Liechtenstein”, says Max J. Heinzle, founder and CEO of area2invest. “We are continuously expanding our range of tokenised financial products for private investors in order to offer this group of investors access to assets that would otherwise hardly be accessible to them. The PALM token is a very exciting addition to our portfolio of products. In addition, we can fully profit from our regulatory advantage as a bridge between the euro and Swiss franc countries.”
area2invest offers a marketplace for securities and token issuances. The platform links natural and legal persons, non-professional and professional investors with issuers from different asset and product classes. As a tied agent of Bank Frick, the Fintech builds on its strong network of banks, brokers, asset and fund managers.
More about area2invest: www.area2invest.com
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