By Adrian Barkley of Crypto Daily
Max Property Group (MPG) has received regulatory approval for a property funding platform built on Ardor’s blockchain technology. The international property investment firm will leverage blockchain to offer fractional ownership of real estate developments. The project will go ahead thanks to the regulatory approval of the AFM, the leading financial market authority in the Netherlands. MPG has selected the Ardor public blockchain by Jelurida to implement the project, paving the way for the first investment opportunities to go live on the platform.
MPG’s new real estate platform is called Max Crowdfund. Jelurida will provide advisory support to the MPG team as they gear up for the rollout of the platform and begin the process of taking pledges for the initial round of investment opportunities. The first loans are scheduled to be approved soon after.
The confluence of real estate and blockchain has been touted for years, but few of these proposals have broken soil. Real-world assets can be tokenized and sold on-chain, but implementing this concept has taken time. Now that the possibility of tokenized real estate is bearing fruit, a number of intriguing opportunities is opening up. Part-ownership of large estates, ongoing developments, and even smaller properties becomes a reality.
Max Property Group is at the vanguard of this market in the Netherlands. The company also has significant business interests in Germany and the United Kingdom, and has ambitious plans for further investments across Europe, including a mixture of residential and commercial property.
The MPG team hopes that Max Crowdfund will open the door to wider participation in the real estate market. Developers and investors will use the platform to raise money from public funding, making qualified national and international real estate investment available to ordinary people around the world. The platform already boasts over 70,000 registered users, many of whom will soon become investors.
One of the first projects earmarked for the scheme is a holiday park in Rotterdam that is undergoing significant redevelopment and expansion. MPG intends to first perform the required due diligence on projects presented to the Max Crowdfund community. Real estate projects will then be listed on condition of passing the screening process.
The Ardor blockchain will allow MPG to ensure that subscriptions are only bought, exchanged and traded by verified users who are entitled to ownership. In particular, it was this aspect of the project that persuaded Dutch regulators to pass the project for final approval. Max Crowdfund will allow granular control with its in-built dashboard, enabling investors to view their current account balance, the status of their portfolio, and its overall performance. Access to monthly, quarterly and annual investment reports will also be provided.
Erwin van Kekem, Max Property Group’s CTO, said: “It has been several years since we initiated the development of Max Crowdfund and obtaining the approval from the AFM was a long 10-month process due to the blockchain component, but we are extremely pleased that we can finally officially go live.”