Ogier advised BTG Pactual, Latin America’s biggest standalone investment bank, on its first security token offering (STO) known as “ReitBZ”.
BTG Pactual (B3:BPAC11), Latin America’s largest investment bank, and Enforce, a leading manager of distressed Brazilian assets that is controlled by BTG Pactual, today announced the launch of “ReitBZ (RBZ),” a security token that will grant purchasers access to the distressed real estate market in Brazil, through blockchain-based technology. (https://reitbz.io/)
The security token offering allows purchasers from several countries to acquire tokens that will represent an investment in Brazilian distressed real estate properties through a low-cost, tax-efficient structure.
ReitBZ’s portfolio will be comprised of urban properties located in the states of Rio de Janeiro and São Paulo. Target properties are those that have been impacted by Brazil’s recent economic recession and now offer potentially significant economic upside.
The security token offering allows individuals to invest in the Brazilian real estate market and, based on the performance of the portfolio, receive periodic profit distributions via a blockchain-based token.
In addition to using blockchain technology to create the security token offering, BTG Pactual is collaborating with Gemini Trust Company, LLC (Gemini) to utilize the Gemini dollar, a regulated, U.S. dollar-backed stablecoin, to both receive investment capital and distribute dividends via the Ethereum blockchain.
BTG Pactual plans to raise up to US$15 million through ReitBZ and will establish a secondary market following the security token offering in order to provide liquidity to the tokens. Eligibility criteria will ensure compliance with the applicable anti-money laundering (AML) and know your customer (KYC) regulatory requirements. The offering will not be available to investors who are residents of Brazil or the United States. Residents of certain other countries may also be precluded from investing.
BTG Pactual is the leading investment bank and real estate manager in Latin America. With over 35 years of experience, the bank combines local expertise and global reach.
Ogier advised BTG Pactual with a team including Bradley Kruger (Picture), James Heinicke and Michael Robinson.
Law Firms: Ogier LLP;
Clients: BTG Pactual;