UAE Real Estate Leader MAG Joins Forces with MANTRA to Tokenize $500 Million in Property Assets

News Desk 3 July 2024

2 minutes read

Crypto News Tokenization UAE Real Estate Leader MAG Partners with MANTRA to Tokenize $500 Million in Property

MANTRA has announced on their medium page a strategic partnership with MAG, a prominent UAE developer with a real estate portfolio valued at over US$5 billion. This collaboration aims to transform real estate investment by leveraging blockchain technology, democratizing access to premium Dubai properties.

Advancing Real Estate Investment through Blockchain Tokenization

This strategic alliance signifies a major advancement for both institutions. MANTRA’s institutional-grade blockchain infrastructure will provide a secure and transparent platform for tokenization. MAG will contribute its extensive portfolio and expertise in the UAE’s real estate landscape.

Initial efforts will focus on Keturah Reserve, a luxury residential development in Dubai’s Meydan district. Investors will gain access to this alternative asset class through a secure vault product, offering an attractive yield stream backed by blockchain technology.

Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, commented, “Working with MANTRA allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This strategic collaboration is pivotal and forward-facing as we continue to innovate and lead in luxury real estate development.”

Structured Opportunities for Secure, Transparent Yield

The total value of real estate projects slated for tokenization will be structured in multiple tranches, reaching a cumulative value of US$500 million. This collaboration unlocks unique investment opportunities in the thriving Middle Eastern market for tokenized real estate, further positioning MANTRA and MAG as key players within the region.

John Patrick Mullin, CEO and Co-Founder of MANTRA, stated, “Partnering with MAG represents a major milestone in our mission to bridge blockchain with tangible assets, with a special focus on the Middle East. This venture will set new standards in real estate tokenization, offering global investors access to premium real estate assets in the UAE.”

Investors participating in the vault product will benefit from a compelling reward structure. They can expect to receive a combined yield, with an estimated 8% APY generated from stablecoins, further augmented by MANTRA’s native token, $OM.

For enhanced investor protection, the initial vault will be over-collateralized by a US$75 million mega mansion located within the Keturah Resort’s “The Ritz-Carlton Residences, Dubai, Creekside” development. Additionally, the project will benefit from MAG’s robust corporate creditworthiness, offering investors a comprehensive layer of security in a robust environment.

Paving the Way for a More Inclusive Financial Future

By combining MANTRA’s secure RWA-focused blockchain with MAG’s established presence in the UAE’s real estate market, this partnership aims to unlock the full potential of RWA compliance within the Middle Eastern region and beyond. This paves the way for a more efficient and inclusive financial future, fostering greater accessibility to both traditional and innovative investment opportunities.

Earlier, on June 6, 2024, MANTRA signed a Memorandum of Understanding (MOU) with Zand Bank to enhance the UAE’s digital asset ecosystem. This strategic partnership aims to develop robust regulatory frameworks that will pave the way for the wider adoption of compliant Real World Assets (RWAs) in the region. This collaboration highlights MANTRA’s commitment to advancing the digital asset space through strategic partnerships and regulatory compliance.