By Liza Tetley on Monday 23 May 2022
The tokens will allow investors with smaller sums to invest into real estate or infrastructure projects.
Using blockchain to tokenise real world assets, investing app Hedgehog has launched two new tokens that give individuals the opportunity to invest in a manufacturing building and a rooftop solar park in Manhattan: Industrial Warehouse @ i.Park 84 and Solar @i.Park Hudson.
By creating tokens, investors can buy a fraction of the asset, which lowers the barrier to entry for individuals wishing to invest in assets “of a size and quality that would otherwise be out of reach”.
The company says its investments offer a mix of benefits, from which investors can prioritise according to what they value most: financial, social, or environmental.
“We are catering to investors that have demand for some of the benefits that investing in valuable real-world assets can provide,” says co-founder Michael Ward. “Industrial Warehouse @ i.Park 84 is a source of stable cash flow and upside potential, while investors in Solar @i.Park Hudson can earn regular income and support the transition to a low-carbon economy at the same time.”
The tokens will be available to individuals in the US, the UK and Switzerland, and target a combination of regular income and growth. Tokens start at $5,000 on the Hedgehog app.
Led by co-founders hailing from Partners Group and Goldman Sachs, Hedgehog has secured more than £1.15bn of real estate assets as investment opportunities, including in commercial real estate, content studios, renewable energy infrastructure.
The company uses ‘tokenization’ technology, underpinned by blockchain-based smart contracts, to offer digital tokens that are backed by income generated, directly or indirectly, by real world assets.