French financial technology company ID Distribution has announced a joint venture with the local property group Groupe JRI, which aims to codify several properties in Paris.
According to a June 17 announcement, ID Distribution and Groupe JRI are jointly planning to issue security codes and list bonds in Frankfurt to buy buildings in downtown Paris. The total amount to be used, 70 million euros (approximately $ 78.5 million), will be allocated for the purchase of five buildings, which will be leased after that.
The use of security codes is designed to increase capital more than can be achieved with traditional debt instruments. In addition, the profitability of ID and Groupe JRI Distribution will reach 6.5%. Icons will be released on the closed blockchain through the wezee.io codec platform.
Christoph Corduli, CFO of ID Distribution, told Cointelegraph that the main advantage of premium securities is that they do not weaken debt or capital, rather than ordinary instruments. Instead, he said, such digital assets “increase the company's balance sheet.”
Cordolli also pointed out that cryptocurrency could not be accepted as a method of paying for the company's security codes due to compliance issues. He said it was easy to get approval for the security code offer for the company, since Frankfurt already has a listing that complies with the rules.
Uses blockchain in the real estate market
Many companies use blockchain technology to facilitate investment in property security. The May report indicates that although a symbolic security space tends to be difficult, large real estate investors earn significant profits.
Further, a March report said Texas-based commercial real estate market Red Swan Ramsey is valued at $ 2.2 billion and plans to codify another $ 4 billion.