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Coreestate offers tokenized real estate in Denmark. Properties are held through companies. For each new property, a company is created. Each investor can then purchase tokens, which are shares of the company that owns the real estate. The tokens are security tokens, meaning they represent actual shares of the company. There are still very few tokenized real estate initiatives in Europe, and Coreestate, along with its real estate projects, is worth following. Diversification by country and currency can also be interesting. The projects are in Danish currency, the DKK.
The tokens are issued on the Ethereum blockchain. The fees on this blockchain prevent weekly income distribution like with RealT. Currently, the payment frequency is every 3 months. They may eventually use another blockchain to reduce fees and increase the frequency of rent payments.
Dividends are paid to token holders in the form of stable coin EUR (EURC) on the Ethereum blockchain. Rental income will be distributed once the building is renovated and tenants are in place.
Estimated returns are around 10%. The properties will be rented for both short-term and long-term leases.
A secondary market is not available for the first property but should be available subsequently.
The first project is available here. It is a renovation project of a building with 5 apartments in the city of Vejle, to be rented out afterward. The renovation is planned for 18 months. To avoid unexpected costs, the financing is 20/30% above the property valuation.
They take a share of the properties. For the first property: 9%
The secondary market will be available on the platform thanks to a partnership with the crypto platform https://plus.assetera.com/
It is possible to invest with or without a crypto wallet.
L'investisseur est propriétaire de parts de sociétés qui détiennent les biens immobiliers. Ces actions sont représentés par des security tokens.
The co-founders are Kristaps Cuders, with whom I had the opportunity to speak, Santa Krieva, and Martins Spelmanis.
Yields are calculated based on the projects analyzed on this site and not on all projects.
⚠️ The higher the yield, the higher the risk.
⚠️ Information about delays of more than 6 months is not available for Coreestate
⚠️ Information on permanent losses is not available for Coreestate
The minimum amount to invest is 100€.
Coreestate has a low minimum amount to invest.
🌎 The financial income are taxable in the investor's country of tax residence.
In France, since January 1, 2018, income from movable capital as well as capital gains from securities sales are subject, when taxed, to a flat-rate withholding tax (PFU) of 12.8%, to which social security contributions of 17.2% are added, making a total rate of 30%.
However, you can choose, when declaring your income, for a global taxation of these income and gains at the progressive income tax rate by checking box 2OP. You may be exempted from the portion corresponding to the flat-rate withholding tax of 12.8% for income tax purposes if your reference fiscal income for year N-2 was less than €25,000 (€50,000 if you are married). When making your declaration, you have the option to maintain the choice for taxation at 30%, or to submit your capital gains to the progressive income tax rate (to which 17.2% social security contributions will be added).
➡️ Search for previous reviews of chez Coreestate
A real estate crowdfunding operation involves several categories of risks:
➡️ Operational Risk: human errors, incompetence, material shortages, delivery delays, poor management, accidents on site, provider bankruptcy...
➡️ Technical Risk: unpleasant surprises during soil and foundation studies, pollution, thermal, acoustic issues...;
➡️ Administrative and Legal Risk: difficulties in obtaining a fully cleared building or development permit, administrative authorizations, Financial Completion Guarantees, Construction Insurance, or All-Risks Site insurance, compliance of sales documents, poorly assessed urban planning authorizations;
➡️ Financial Risk: poor cost analysis, budget overruns, lower profit margins, obtaining bank credit, etc.;
➡️ Commercial Risk: insufficient pre-marketing, insufficient local market study (prices, needs, location...), delays in lot sales (commercialization), neglected suspensive conditions, unfavorable market evolution, risky sales strategy, overly optimistic exit prices, etc.
Les actions des LLC et INC propriétaires des biens immobiliers sont détenues dans des registres chez RealT. Ces parts de sociétés sont représentés par des tokens sur la blockchain Gnosis où Ethereum MainNet. Pour être revendu, le propriétaire doit demander à être whitelisté chez RealT. Il serait donc difficile de se faire voler ses actes de propriété même si le crypto-wallet est compromis. Les loyers sont versés chaque semaine sur le wallet en stable coin USDC. Si le wallet est compromis, il y a un risque de se faire voler ses USDC. Et il n'y aurait alors aucun moyen de les récupérer. Pour éviter que cela n'arrive, il ne faut jamais transmettre sa pass phrase. On préfèrera aussi un cold wallet déconnecté d'Internet pour une meilleure sécurité.
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