Baker McKenzie advised Knight Dragon Investments Limited ("Knight Dragon") and its subsidiary KD Tokens Limited on the tokenization of economic interests in Building 4 in Upper Riverside Development, which is at the heart of Knight Dragon's ten million square foot iconic Greenwich Peninsula development. The project is the first tokenization of prime real estate in Central London.
This transaction, having an anticipated market valuation of GBP 140 million, involves the minting of digital tokens that entitle token holders to share 80% of the gross profit generated by Building 4 in Upper Riverside Development.
The Baker McKenzie team advising Knight Dragon was led by virtual asset specialist Joy Lam and included Deanna Liu and Ryan Chan.
Commenting on the deal, Joy Lam said: “The Knight Dragon building tokenization 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. We are pleased to be advising on the structure and offer of these blockchain native digital tokens that represent a fractionalized interest in the economics of prime real estate in Central London. This innovative transaction clearly demonstrates how blockchain technology can be harnessed by future-oriented asset owners."
She continued: "At Baker McKenzie, we pride ourselves on delivering innovative solutions to our clients. We are delighted to have had the opportunity to partner with Knight Dragon on this project. We look forward to leveraging our unparalleled experience with cutting-edge virtual asset offerings and working hand-in-hand with like-minded forward-thinking clients to help them bring to life innovative products that not only deliver value to the company and their investors, but also propel the industry to the next phase of growth."
Knight Dragon is an entrepreneurial urban regenerator and property developer. It creates places, builds properties and invests in related projects that bring new ideas and set new standards for urban living. The team uses creativity and collaboration to innovate. Backed by Dr. Henry Cheng, Chairman of Chow Tai Fook Enterprises Ltd, and led by entrepreneur Sammy Lee, Knight Dragon has a solid foundation and a global outlook. Its flagship project is Greenwich Peninsula in London, one of the largest regeneration projects in Europe, where the team is delivering a new district that encapsulates Knight Dragon’s approach and expertise in creative placemaking.