Baker McKenzie’s Hong Kong team advised UK-based property developer Knight Dragon and its subsidiary KD Tokens to raise GBP140 million (USD171.4 million) via tokenisation, allowing individual investors to share the rental income from a central London residential tower.
Partner and virtual asset specialist Joy Lam led the team advising the deal on Building 4 in the Upper Riverside Development, with the assistance of associate Deanna Liu and registered foreign lawyer Ryan Chan.
Knight Dragon is chaired and majority-owned by Hong Kong billionaire Henry Cheng Kar-shun. The company is selling 100,000 tokens at GBP1,400 each. This transaction involves the minting of digital tokens that entitle token holders to share 80% of the gross profit generated by the tower’s rental income.
“The Knight Dragon building tokenisation is a ground-breaking transaction that transforms a traditionally illiquid asset into an efficient and transparent investment product that is accessible to a broad base of investors,” said Lam. “This innovative transaction clearly demonstrates how blockchain technology can be harnessed by future-oriented asset owners.”