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With 38,000 inhabitants and 160,000 square kilometres of ground area, Liechtenstein is one of the smallest countries in Europe. However, this small state between Switzerland and Austria aims to become a global centre for blockchain technology and companies.
Liechtenstein stands for political stability and is a member of the European Economic Area. With Bank Frick, the country disposes over considerable of financial and blockchain know-how. Bordering on to Eastern Switzerland, Lichtenstein is an ideal business location for CROWDLITOKEN AG to spread its services internationally.
The fee structure at CROWDLITOKEN is transparent and clearly defined. The following costs (without VAT) can be charged:
- 0,75% property management fee
- 3,00% acquisition fee for successful purchase or sale of properties
- 15% performance bonus with more than 5% investment return
- 15% performance bonus in the event of repayment at maturity of more than the nominal value of CHF 1.00 per bond
It should be noted that these costs are never deducted directly from the investors’ assets but are included in the returns via the settlement.
CROWDLITOKEN uses the profit for the further development of the business idea and for the improvement and optimization of the processes and the platform.
Due to the complexity of the product, CROWDLITOKEN AG requires a diverse setup with a variety of skillsets. The team combines experts from the fields of real estate, finance, law, compliance and marketing as well as innovative lateral thinkers, technology specialists and strong, well-connected entrepreneurs. The combination of innovative, young minds and experts with many years of experience, who all bring different perspectives to the table, ensures a dynamic and highly competent team.
Yes, CROWDLITOKEN AG applies strict compliance rules and only accepts investors who have been duly identified themselves in the course of the digital onboarding and later in trading on exchanges. The company applies the Know-your-Customer Guidelines (KYC) and makes sure that all requirements of the Anti-Money Laundering Regulations (AML) are fully met under applicable law.
Any person who later purchases tokens on the secondary market but fails the full KYC/AML verification process may not exercise their rights in respect of these tokens.
The company is headquartered in Triesen in the Principality of Liechtenstein. The prospectus has been approved under the supervision of the FMA (Financial Market Authority Liechtenstein).
Die CROWDLITOKEN AG mit Sitz in Lichtenstein hat ein neues Anlagekonzept entwickelt, das die Vorteile bestehender direkter und indirekter Immobilienanlagen vereint. Das Unternehmen ermöglicht die Vergabe von digitalen Immobilien-Anleihen via Blockchain-Technologie und kauft europaweit Liegenschaften. Anleger profitieren von der Beteiligung am Nettoertrag und der Wertsteigerung der Objekte.
A blockchain is a a distributed log data and asset management structure. Compared to conventional, centrally structured databases, a blockchain offers various advantages. The following essential distinguishing features can be listed as a rough generalisation of possible advantages.
DECENTRALIZED & DISTRIBUTED
A blockchain is a decentralised data structure i.e. it is run by numerous computers which are highly distributed.. All supporting computers involved in operating this blockchain manage the same, identical database.
The participants of the network communicate directly with each other without a central coordination point. This way, the data structure is much more resilient without a central point of failure
Transactions on a blockchain are visible on a pseudonym level. This however doesn’t mean, that the values of all data are visible. Data can also be stored encrypted.
TIME STAMPED & IMMUTABLE
Transactions on a blockchain are written in packages of transactions, what we call “blocks” at regular time intervals. Once entered into a block, transactions cannot be deleted or changed or rearranged in time.
Through cryptographic encryption and the distributed structure of the blockchain, a high level of security as well as digital uniqueness can be ensured. In simple terms, a blockchain can prevent data from being duplicated with copy-paste.
In the blockchain, transactions can be underlaid with logic in form of code. This allows transactions to be carried out automatically based on rules and logic defined in advance. This on-chain logic is often called Smart Contracts or Chain Code.
There are various blockchain types with different characteristics of the advantages described above.
CROWDLITOKEN uses blockchain technology to replace intermediaries where possible and reasonable, specifically to replace the general ledger which otherwise would be provided by a bank. Further, the digital bond “CROWDLITOKEN” is a blockchain-based smart contract (also called “Token”) representing the investor’s ownership rights over that specific asset. By using this technology, CROWDLITOKEN’s processes are leaner, low-cost and more efficiently.
CROWDLITOKEN can thus make investments available to investors as of a minimum investment of starting at 100 CHF.
In addition to CHF and EUR, CROWDLITOKEN accepts participation with the cryptocurrency ether
A digital, blockchain-based asset (token) is a digital representation of a bond. It represents ownership rights over the bond and the right to the participation in profit or turnover or it can represent a repayment obligation.
In contrast to funds, there are no surcharges and hidden fees to be paid. The overhead costs of CROWDLITOKEN are charged to the property. However, the following costs (excluding VAT) may be charged:
- 0.75% p.a. property management fee based on the investment value of the property.
- 15% annual performance bonus if the net income from the property in relation to the net purchase price is more than 5%.
When purchasing tokens, the following fees may apply. The actual fees are clearly listed for the customer before the purchase:
- Purchase in CHF or EUR: 1%
- Purchase in ETH: 1% for the subscription process and 1% Exchange Brokerage
- All Subscriptions: 4 Tokens per Transaction GAS-Costs and 40 Tokens if Video Identification is required
Nominal value 1 CRT = CHF 1.00
CROWDLITOKEN is structured as a subordinated bond and has an initial term of 25 years. This is the period between the issuance of the tokens – tokens are in circulation and valid – and the last trading day, the day on which the repayment is made. There is, however, both an early redemption option and the option to postpone redemption twice by five years.
It is solely and exclusively the responsibility of the investor to assess the tax consequences of the ownership or transfer of CRTs – in any way whatsoever – or the possible redemption of CRTs by CROWDLITOKEN AG and to pay all taxes arising from ownership, transfer or redemption. Investors are advised to clarify the tax consequences associated with the ownership of the Tokens with their own tax advisors. However, investors will receive an electronic tax statement upon acquisition of the property and receipt of any payments from CROWDLITOKEN AG.
The number of tokens varies from property to property and depends on the purchase price paid. Expressed as a percentage, the maximum is 55% of the value of the property. In principle, it is possible for the sole investor to fill 55% of the property with tokens.
Investors can decide on the following resolutions within the scope of their co-determination rights:
- Changes to the terms and conditions of the bond, e.g. a change to the minimum interest rate or the introduction of a new crypto currency for payment processing.
- Sale of a property, whereby this decision is only presented to investors who have invested in the property in question.
Other issues which, in the opinion of CROWDLITOKEN AG, have a significant impact.
Binding decisions are made in all cases with 50% or more of all tokens participating in the vote.
The ISIN (International Securities Identification Number) is an international bond identification number. It is a twelve-digit letter-number combination and represents an identification for bonds. The ISIN makes it easier to trade the bond on exchanges and to integrate the bond into existing systems (e.g. reporting tools, banking systems).
The investor receives his share of the value of the real estate portfolio, with a minimum repayment of CHF 0.70 per token.
During the term of the bond, an investor can sell the purchased tokens to another interested party (secondary market such as, if available, stock exchange or OTC market). At the end of the term, the token is repaid to the investor. The investor receives his share of the value of the real estate portfolio, with a minimum redemption of CHF 0.70 per token. The currency for the repayment can be chosen between CHF, EUR and Ether.
Diversification means spreading risk. A real estate crisis in Switzerland doesn’t necessarily lead to a real estate crisis in Holland. Spreading the tokens over several countries helps to spread the risk and to reduce profit collapses.
In addition to the minimum interest rate of 0.875% (year 1+2), 1.5% (year 3) or 2.1% (from year 4) p.a., the investor receives a performance-related interest that the property of his choice yields. He can choose between two different models:
CRT-Cash: Do you prefer a regular payment of the income? Then choose CRT-Cash and get your profits paid out in EUR or CHF at the beginning of each month.
CRT-Reinvest: Do you want to increase the capital value of your investment? Then choose CRT-Reinvest.,The share of net returns is converted into new tokens based on the last CRT issue price paid. Newly allocated tokens are automatically transferred to the wallet address of the investor. From there they can re-allocate his new tokens.
If no adjustment is made in the investor portal, CROWDLITOKEN AG pays out in the currency in which the tokens were subscribed (CHF, EUR, ether) as standard – on the 5th of each month. The investor can adjust the payout currency at any time.
CROWDLITOKEN expects net returns for the investor of 5% to 7%.
The return corresponds – as a percentage of the individual investment – to the rental income of the property, from which the expenses of administration, provisions, taxes and interest are deducted.
Investors from countries in which our product is not approved can’t invest in our product. There can be several reasons – political and financial – why our product is not approved and available in a country.
Investors with a US status are currently not allowed to invest in the CROWDLITOKEN product. This restriction is due to political and legal reasons.
The issue prospectus will be sent to selected countries of the European Union in which the public offering and subscription is permitted. Shipping to other countries outside of Europe is currently being reviewed.
In Swiss francs (CHF), Euros (EUR) or ether (ETH).
A digital bond can be issued directly by CROWDLITOKEN without a bank (cost savings) and can be held by the investors themselves, again without a bank. The digital bond allows a wide range of people to benefit from the financial product. A digital financial instrument also opens up new opportunities for the investor: At CROWDLITOKEN we can combine the digital bond with the digitised income streams of real estate investments, allowing investors to participate directly.
CRT is a subordinated bond under the law of the Principality of Liechtenstein. The bond has a term of 25 years (with an extension option of 2x 5 years) and pays a minimum interest rate of 0.875% (year 1+2), 1.5% (year 3) or 2.1% (from year 4) p.a. (based on CHF 1.00). The bond is issued digitally in the form of a token.
With the CRT-Reinvest model, an increase in capital value is possible. Instead of being paid out in cash, the share of the net return is converted into new tokens based on the last CRT issue price paid and can be directly reallocated.
Since CRTs are backed by real estate, it is assumed that the trading value of the token reflects an increase in value of the real estate. Investors can benefit from an increase in value in three ways:
- Selling the tokens on a stock exchange or bilaterally to another investor (OTC market), provided they trade at or above the net market value of the portfolio.
- Placing the tokens on a property that is likely to be sold at a profit. The profit from the sale of the property will be distributed to the respective investors on a pro rata basis.
- Holding the tokens until maturity when the bond is repaid and the investors are paid their share of the realised appreciation of the portfolio
Real estate is a tangible asset: assets that can be “touched” have a stable value and are associated with a certain protection against inflation. These assets retain their value in times of inflation (price increases). These investments are offset by nominal values such as cash. Unlike tangible assets, nominal values lose value in times of price increases, i.e. you can suddenly buy less with 100CHF.
The bond will be traded on the secondary market. The price of the bond should reflect the value of the real estate portfolio. A real estate bubble can therefore affect the price of the bond traded on the secondary market.
CROWDLITOKEN guarantees a minimum repayment of CHF 0.70 per token. A total loss would therefore only be possible if the company were to go bankrupt. The prospectus of the bond contains several mechanisms to make this scenario highly unlikely. Such mechanisms include mandatory reserve accumulation, write-down clauses and an extension of the term by a maximum of two times five years in the event of a real estate crisis.
Digital assets are the next evolutionary step in the world of financial products. CROWDLITOKEN is a digital bond issued by CROWDLITOKEN AG. The technology used for the issuance is young and the markets for trading tokens are still developing. In addition, the same risks apply as in a traditional real estate investment: the value of the properties may fall, rent losses are possible or an exceptional need for renovation arises.
This refers to indirect real estate investment where, for example, one buys units in an open-ended real estate fund or shares in a real estate stock corporation. Indirect investments require only minor investments and ensure trading liquidity on public stock exchanges. However, some funds also require high minimum investment amounts and provide for blocking periods in order to solve liquidity problems in case of numerous redemptions.
Funds and real estate companies that are managed entirely by managers do not provide for investor participation. When an investor invests in such products, he buys a flat-rate share of a portfolio.
Investors invest classically in purchases of condominiums or apartment buildings. Direct investments usually require large amounts of capital and various obstacles must be overcome: For example, financial and technical due diligence, mortgage brokerage, property management, tax planning, legal form and finally dealing with local authorities and registration in the land register.
Thanks to digitalisation, CROWDLITOKEN allows investments starting at 100 CHF/EUR, investments are user-friendly, liquid and it generates a stable return in times of negative interest rates. Furthermore, the concept combines the advantages of direct and indirect real estate investments, concretely:
Elements of direct real estate investments:
- Individual real estate portfolio
- Inflation protected return (5-7%)
- No share premiums
Elements of indirect real estate investments (e.g. real estate funds):
- No effort to search and manage real estate
- Tradable and bookable into a bank custody account (first digital asset project with a Swiss & Liechtenstein ISIN: LI0432942626)
- Prospectus approved by the FMA Liechtenstein
In addition, you profit with CROWDLITOKEN…
- from substantially lower costs compared to investment funds due to lower fees and technological efficiency
- from flexibility, as you can adjust real estate allocation anytime
- from tax efficiency and elimination of the withholding tax
Due to the current strong price fluctuations, the stock market is very uncertain and returns are not guaranteed. The real estate market, on the other hand, is very stable and enables plannable income. With CROWDLITOKEN you will even receive a pro rata payout every month.
CROWDLITOKEN differs from a real estate fund in the following points:
Individuality: In a real estate fund the fund manager decides on the portfolio, the investor however has no influence. In CROWDLITOKEN, each investor can put together his individual portfolio of properties based on his personal risk profile and adjust it at any time. He can also specify his risk profile and CROWDLITOKEN will provide the investor with a personal placement proposal.
Flexibility: In contrast to a real estate fund, the CROWDLITOKEN investor can choose freely between distribution and reinvestment of his monthly cash flow. The distribution currency can also be selected individually from CHF, EUR and Ether. The choice between the options can be flexibly adjusted at any time.
Transparency: As an investor at CROWDLITOKEN you can see what cash flow the properties generate and what costs are charged.
No premium: In contrast to many real estate funds, CROWDLITOKEN has a built-in mechanism that migrates the occurrence of premiums
Lower costs: CROWDLITOKEN investors benefit from substantially lower costs than in investment funds due to lower fees and technological efficiency.
No withholding tax: Due to the company domicile in Liechtenstein, no withholding tax is payable.
Thirteen times a year, at a fixed date/time in accordance with the prospectus approved by the FMA. Twelve distributions are paid out with a budgeted amount per year. A special payout is made after the successful completion of the annual real estate account of the respective property.
CROWDLITOKEN AG pursues a three-step strategy for the acquisition of real estate, the “Triple Europe Real Estate Strategy”. Divided into the so-called Core, Core Plus and Added Value categories. The first properties are acquired in Germany and Switzerland. The portfolio will then be extended to other European countries.
In the first phase, CROWDLITOKEN AG mainly invests in the Core category to create stability and a constant cash flow. If higher issue proceeds are achieved, the portfolio is supplemented by the Core-Plus and Value-Added categories in order to increase income and create an attractive balance between the categories. At its peak, the portfolio is expected to include more than 100 properties, to which tokens can be allocated as follows (non-binding example): 40% Core, 40% Core-Plus and 20% Value-Added.
Core plus properties are properties in B-C locations that are almost fully let and have a solid structural assessment. Re-letting on termination is always considered to be a given. The rent level is considered stable. The rental contracts are medium-term.
The properties can be inspected from the outside at any time. If you wish to view the property from the inside, please contact us at [email protected].
The employees in the real estate department of CROWDLITOKEN AG are trained real estate experts. Each property is thoroughly checked by the experts through a standardized process before it is purchased. In addition, there is an external appraisal by a renowned appraiser, and the financing bank checks the property. In the case of large transactions or redevelopment objects, we also prepare a constructional appraisal.
The great thing about CROWDLITOKEN is that you can put together your own individual property portfolio. Accordingly, you can easily invest in different properties at the same time and change this afterwards.
We receive the rents in the respective national currency of the property. The conversion takes place at a certain key date (fixed day and time).
The investors of the respective properties receive a report in the dashboard every six months. The reporting contains the most important key figures.
The property is not sold. The respective asset manager can only submit a new application with reasons for the sale after 18 months. The property remains visible in the dashboard, tokens can be placed further.
The responsible asset manager submits an application to the real estate commission of CROWDLITOKEN AG, stating the reason for the sale. Together they define a minimum selling price. Afterwards, the token holders of the respective property are asked via an online voting whether they want to sell the property. If this is positive, a bidding process is carried out through a real estate agent. Once the buyer has been found and the purchase price has been paid, a special distribution is made to the token holders of the property in question.
The Board of Directors of CROWDLITOKEN AG sets out an overall real estate strategy. Operational control is the responsibility of the real estate commission of CROWDLITOKEN AG. There is an operational real estate concept which clearly defines the specifications for the acquisition. In addition, the financing bank must provide the necessary outside capital. Furthermore, we must be convinced that the properties are to be classified as value-preserving and that we are certain that the income from the letting will be sustainable in order to guarantee the returns.
Yes, if you meet all the necessary requirements for a rental agreement, you can also live in an apartment of the property yourself or move into office or commercial space. However, you do not have the right to register owner occupation.
The properties have a maximum debt ratio of 60%. Depending on the property strategy, short, medium and long-term mortgages are taken out. The refinancing rates are always kept under review in order to react to changes in the market.
Maintenance costs are taken into account of the budget planned and allocated for every property. They are paid directly from the property account. This factor is already included in the reported yield.
Property management is outsourced to local property management companies located in the immediate vicinity of the property. These property managers are ideally placed to manage the properties, commission repair and maintenance work and ensure that everything is always in order. These local property managers also prepare the financial statements for the individual properties and report to the local CROWDLITOKEN team.
Switzerland has the LEX-Koller Act. Foreign persons and companies may not acquire residential property. CROWDLITOKEN is domiciled in Lichtenstein and may therefore only acquire office and commercial properties.
The properties are valued every 6 months by an independent valuation partner. Wüest Partner is currently our partner for this. The results are continuously published and updated in the dashboard. In this way, investors are always informed about the value of the real estate
CROWDLITOKEN AG buys the properties and is listed as the owner in the local land register. The investors only own the properties virtually in the dashboard. Participation in the property’s success is based on the placement of the tokens on the property. Further details are given in the approved securities prospectus.
All properties are checked through our standardised acquisition process. This involves intensive examination of location criteria, building condition, earnings situation, legal certainty, and possible potential for increasing returns. In addition, we have an independent building technology expert opinion drawn up for all properties above a certain size. A valuation report by Wüest Partner is carried out prior to each purchase. All relevant property documents are made available to investors in the CRT dashboard.
Real estate is an asset class in high demand. Internet platforms and real estate agents help but are only intended as support for our acquisition strategy. Real estate is location-bound, so strong relationships with local people are essential. Accordingly, CROWDLITOKEN AG works with local specialists who have the necessary network and know-how. For this reason, individual country teams are established which are responsible for the acquisition and management of real estate in the defined countries.
Added-value properties are properties with many potentials that still need to be developed. Targeted measures can be taken to improve the condition of the building, the rental income and the occupancy rate. Due to the favourable purchase price and the recognition and implementation of the potential, an above-average return can be achieved.
Core properties are properties in central locations which are fully let and are structurally considered to be as good as new. Re-letting on termination is always considered to be a given. The rent level is assessed as stable to rising. The rental contracts are long-term. Loss of earnings is therefore considered to be low.
The employees of CROWDLITOKEN AG select properties according to location, building condition and potential yield. The aim is to ensure sustainable returns and to ensure that the value of the property is maintained over the long term. For this purpose, a real estate strategy has been developed which is publicly available.
The investment process
The maximum investment amount is CHF 20 million.
The minimum investment amount per investor is 100 Swiss francs.
There is a charge for making transactions on the Ethereum blockchain and crediting the CRT token to your wallet.
The abbreviation stands for Know-your-Customer. This refers to specific guidelines during the onboarding process which must be checked to identify the interested investor (legitimacy check of new customers). CROWDLITOKEN AG applies strict compliance rules and only accepts investors who have been properly identified during the onboarding process and later during trading on crypto exchanges. Here the company also complies with the Anti-Money Laundering Regulations (AML).
When purchasing tokens, the following fees may apply. The actual fees are clearly listed for the customer before the purchase:
- Purchase in CHF or EUR: 1%
- Purchase in ETH: 1% for subscription process and 1% Exchange Brokerage
- All Subscriptions: 4 Tokens per Transaction GAS-Costs and 40 Tokens if Video Identification is required to the Issuer
The registration process takes about 15 minutes, provided you have prepared the needed documents. Until you can make the deposit, we will check your data, which can take up to 2-3 days. The registration process in connection with the verification of your data and the deposit is split into two or three phases and cannot be completed in one go.
The registration process for legal entities takes longer.
Learn more about our company and download our free CROWDLITOKEN documents.
- Prospectus (legal basis)
- KIID (Key Investor Information)
- Product description