Coinspeaker
MAG and MANTRA Team Up to Tokenize Multi-Million UAE Real Estate Market
In a landmark development for the tokenized Real World Asset (RWA) sector, MANTRA, the institutional-grade Layer 1 blockchain platform for tokenized RWAs, has partnered with MAG, a leading UAE real estate developer. The collaboration will see the tokenization of $500 million worth of MAG’s real estate assets.
As shared with Coinspeaker, Christoph Lidman, MANTRA Marketing Lead noted that the collaboration will signal a shift and revolutionize the real estate sector.
Yield in Stablecoins and $OM Tokens
The partnership will initially focus on Keturah Reserve, a luxury residential development in Meydan, Dubai. The project, designed for transformational living, will serve as the starting point for a real estate financing vault on MANTRA’s compliance-ready Layer 1 blockchain.
This innovative vault product will offer investors a stable and attractive yield backed by blockchain security. It marks a shift in the real estate sector in the United Arab Emirates.
With MAG’s total real estate portfolio valued at over $5 billion, the collaboration with MANTRA will significantly enhance the tokenized real estate market in the Middle East. The tokenization effort is structured in multiple tranches. It will see an aggregate transaction value of $500 million, establishing MANTRA and MAG as leaders in this growing market.
Meanwhile, investors in the vault are expected to earn yield in stablecoins and OM tokens. Per the benefits, an approximate return of 8% APY from stablecoins is expected to further boost the inclusion of OM tokens.
Notably, MANTRA is seeking to drive RWA tokenization not just in the UAE but also in Hong Kong. The goal is to assist entities in mastering the complexities of RWA tokenization. This tokenization agenda uniquely goes beyond MANTRA and MAG. Other notable firms in both the traditional finance and Web3 world are making a crucial pivot into this niche.
Over-Collateralization: Ensuring Robust Investor Protection
The initial vault will be over-collateralized by a $75 million mega-mansion at “The Ritz-Carlton Residences, Dubai, Creekside”, a part of the Keturah Resort. This will be further supported by MAG’s corporate credit, ensuring robust investor protection while pioneering innovation in real estate investment through tokenization.
John Patrick Mullin, CEO and Founder of MANTRA remarked:
“Partnering with MAG is a significant milestone in our quest to bridge blockchain with tangible assets, particularly in the Middle East. This venture sets new standards in real estate tokenization, providing global investors’ access to premium real estate assets in the UAE.”
Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, added that the MANTRA collaboration will make the business better and more aligned with futuristic products.
“MANTRA enables us to utilize cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This strategic partnership is crucial as we continue to innovate and lead in the luxury real estate sector,” he said.
MAG and MANTRA Team Up to Tokenize Multi-Million UAE Real Estate Market