MAG Lifestyle Development, a prominent UAE-based real estate developer, has announced a strategic partnership with Mantra, an institutional-grade blockchain platform, to tokenise a substantial portion of its real estate portfolio valued at $500 million. This collaboration marks a significant leap forward in the global adoption of blockchain technology in the real estate sector.
Revolutionising Real Estate Investment Through Blockchain
The initiative will commence with the tokenisation of MAG’s Keturah projects, including Keturah Reserve in Meydan and Keturah Resort at Dubai Creekside. Mantra will integrate these projects into its compliance-ready Layer 1 blockchain, establishing a pioneering real estate financing vault.
Investors participating in the vault will enjoy an attractive yield structure, including stablecoin returns and OM tokens. The expected annual percentage yield (APY) is set at 8%, supported by the security and transparency inherent in blockchain technology.
In a statement, Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, emphasized the strategic significance of the partnership: “Working with Mantra allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This collaboration is pivotal as we continue to innovate in luxury real estate development.”
John Patrick Mullin, CEO and founder of Mantra, echoed these sentiments, highlighting the venture’s role in bridging blockchain with tangible assets in the Middle East. “Partnering with MAG represents a major milestone in our mission to set new standards in real estate tokenisation,” Mullin stated. “This initiative will provide global investors with unprecedented access to premium real estate assets in the UAE.”
Security and Innovation in Real Estate Tokenisation
The initial vault will secure over-collateralisation, incorporating a $75 million mega mansion at The Ritz-Carlton Residences, Dubai, Creekside.. This collateralization strategy, coupled with MAG’s corporate credit, aims to ensure robust investor protection while driving innovation in real estate investment through tokenisation.
With MAG’s total real estate portfolio exceeding $5 billion, the collaboration with Mantra positions both entities at the forefront of the burgeoning tokenised real estate market in the Middle East.