MAG, a leading real estate developer in the UAE, has announced a major partnership with Mantra, the Institutional-grade Layer 1 blockchain for tokenised RWAs, which will see the tokenisation of $500 million of MAG’s real estate portfolio.

 

With MAG’s total real estate portfolio valued at over $5 billion, the collaboration with Mantra aims to revolutionise real estate investment through the application of blockchain technology. 

 

Starting with Keturah projects – Keturah Reserve in Meydan, Dubai and Keturah Resort at Dubai Creekside, the partnership will introduce a real estate financing vault on Mantra’s purpose-built compliance-ready Layer 1 blockchain. This initial vault product provides investors with an attractive yield derived from an alternate asset class and is backed by the security of blockchain technology.

Structured in multiple tranches, the aggregate transaction value of projects to be tokenised will be $500 million, firmly positioning Mantra and MAG as industry leaders in the tokenised real estate market in the Middle East.

 

Yield in stablecoins and $OM tokens

Investors in the vault will earn yield in stablecoins and $OM tokens, drawing an approximate expected return of 8% APY from stablecoins, a yield that will be further augmented with $OM tokens.

 

The initial vault will also be over-collateralised by a $75 million mega mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development which is part of the Keturah Resort, and will be backstopped by MAG’s corporate credit, ensuring robust investor protection while pioneering innovation in real estate investment through tokenisation.

 

Forward-facing

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."

 

John Patrick Mullin, CEO and 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 tokenisation, offering global investors access to premium real estate assets in the UAE."--TradeArabia News Service