US property manager tokenizes multifamily properties on Chintai blockchain

Patel Actual Property Holdings (PREH) has launched a $100 million tokenization fund on the Chintai blockchain, aiming to offer accredited buyers entry to institutional-grade actual property alternatives.

The brand new PREH Multifamily Fund is a tokenized funding automobile targeted on classic Class A multifamily models throughout the highest 20 US progress markets, the corporate advised Cointelegraph on Could 12.

“The whole construction is digital-native from the beginning — compliant onboarding, reporting, capital calls, and (potential) secondary market transfers,” a PREH spokesperson mentioned.

The fund is a part of a broader $750 million funding automobile co-developed by PREH and several other institutional corporations, together with Carlyle, DRA Advisors, Walton Road Capital, RPM and KKR. Initially, the corporate mentioned that $25 million of the $100 million allocation can be tokenized on Chintai. 

Based on PREH, the tokenization construction helps alleviate many transparency and liquidity constraints buyers usually face in personal market placements.

Based in 2010, PREH is a nationwide actual property asset supervisor that oversees a portfolio of Class A multifamily properties. The corporate owns and operates actual property investments, overseeing the acquisition, financing and administration of properties. 

Since its inception, PREH has accomplished greater than $500 million in actual property transactions.

Chintai is a tokenization-focused layer-1 blockchain that additionally powers the R3 Sustainability Fund for environmental, social, and governance (ESG) investing. Its native token, CHEX, is presently valued at $0.24, with a complete market capitalization of $244 million, based on CoinMarketCap.

“We selected Chintai as a result of they provide a completely regulated, institutional-grade platform purpose-built for tokenizing real-world belongings,” PREH’s president, Tejas Patel, advised Cointelegraph in a written assertion, including:

“Their know-how permits us to keep up the best requirements of compliance and investor protections whereas introducing the efficiencies and entry benefits of blockchain.”

Associated: RWA tokenization trends and market outlook for 2025: Report

Tokenizing actual property

Tokenizing real estate has lengthy been seen as a strategy to modernize property funding, however till not too long ago, real-world examples had been uncommon. 

By early 2025, actual property tokenization had gained traction throughout North America and the United Arab Emirates, whereas efforts are underway in Europe to determine regulatory frameworks that help its progress.

One of many largest catalysts for tokenization is the “skill to remove the illiquidity low cost on actual property,” Polygon CEO Mark Boiron advised Cointelegraph in March.

The expansion of liquid secondary markets for fractional actual property may considerably strengthen that benefit.

This motivation additionally drove RWA platform DigiShares to launch the REX marketplace on Polygon earlier this 12 months, that includes two luxurious property listings in Miami, Florida.

Efforts are additionally underway to tokenize commercial real estate, with Blocksquare and Vera Capital not too long ago partnering to supply fractional possession of greater than $1 billion value of properties.

In opposition to this backdrop, consultancy agency Deloitte has forecast that $4 trillion value of actual property can be tokenized on the blockchain over the subsequent decade.

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