$500M of UAE real estate tokenized in MAG & Mantra partnership

Real-World asset tokenization protocol Mantra partnered with United Arab Emirates (UAE) real-estate developer MAG to tokenize $500 million of its portfolio.

According to a July 3 Mantra announcement, MAG’s total real estate portfolio is currently valued at over five $5 billion and the firm is starting its tokenization from Keturah Reserve — a luxury residential development in Meydan, Dubai. Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, said:

"Working with MANTRA allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This strategic collaboration is pivotal and forward-facing as we continue to innovate and lead in luxury real estate development."

Mantra is a layer-1 protocol specifically developed for real-world asset tokenization, meant to comply with regulatory burdens. The project’s website describes the blockchain in question as a “permissionless chain for permissioned applications.”

The tokens that will be launched as a result of the collaboration are going to be released in tranches. Investors will earn yield in stablecoins and OM tokens, with the announcement promising an “approximate expected return” of 8% annual percentage yield from stablecoins alone.

The initial investment vault will be over-collateralized by the $75 million-valued mansion at the Ritz-Carlton Residences in Dubai and backstopped by MAG’s corporate credit. Mantra founder and CEO John Patrick Mullin said:

"Partnering with MAG represents a major milestone in our mission to bridge blockchain with tangible assets, with a special focus on the Middle East. This venture will set new standards in real estate tokenization, offering global investors access to premium real estate assets in the UAE."

Mag is seemingly an rapidly-growing real-estate enterprise. Back in late January the firm announced plans to invest $212.62 million to develop a new residential project in Stabio, Switzerland.

This is also far from being Mantra’s news of this kind. Back in late March, the protocol raised $11 million for a real-world asset tokenization project in the Middle East.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.