PHAETON’S ROLL-OUT STRATEGY
From concept to execution — №5 Phaeton Real Estate
One industry that is being radically disrupted by blockchain technology is Real Estate. It is a tangible product that affects our daily lives as it provides shelter for living, shopping, manufacturing and business. As a business, Real Estate encompasses developing, buying, and selling property. In addition, it affects a country’s economy because it is a critical driver of economic growth.
Real Estate is a sector that Phaeton believes can bring significant value to its shareholders and token holders. Phaeton has an advantage over other blockchain platforms as it is a silo headed by Ron Forlee, the CEO of Phaeton. Ron has 40 years of experience working as an architect, developer, author, and educator. Having a good understanding of the development, financing, and investing process, Ron believes blockchain technology can improve and resolve many real estate-related problems. Some of the issues include funding, liquidity and, more importantly, housing affordability.
PHAETON REAL ESTATE’S TEAM
Ron Forlee (CEO) is the captain of this team and is assisted by the following professionals:
- Brett Endersby: A 30-year veteran of the Property industry in Perth, with an extensive background in site selection and acquisition, ownership structures, debt raising, complex negotiations, project management and development delivery.
- Abhijat Sinha: Abhijat is a Development Manager and has a master’s in architecture and a Diploma in Project Management with over 25 years of diverse international experience.
Phaeton has established both short- and long-term goals within its real estate ecosystem.
- Short-term: (1) Create a public marketplace for real estate enthusiasts by promoting Tangible NFTs and (2) acquire land assets through its community solar farm roll-out.
- Long-term: The goal for Phaeton Real Estate is to create and own the most extensive Real Estate Portfolio in each country. This strategy is similar to MacDonald’s model, where the Hamburger Franchise’s value is not based on its franchise fees but its real estate holdings. When the portfolio grows to a critical mass, it will be tokenised into Stable Tokens that can be traded.
REAL ESTATE TNFT MARKETPLACE
Phaeton Real Estate Tangible Non-Fungible Tokens (TNFTs) Marketplace is a “Sidechain” of Phaeton Blockchain. It is a marketplace where real estate developers and investors can trade TNFTs. It is also a form of “crowdfunding” where sponsors and developers can mint tokens of the real estate projects and sell them on the marketplace.
The current transfer of property ownership is labour-intensive and expensive. By “tokenising” the property rights into TNFTs, the process becomes much easier to trade and manage them. Furthermore, Real Estate is ideal for blockchain applications. Real estate property is immovable and has a physical presence that cannot be physically extricated or stolen by third parties.
With the potential benefits of blockchain technology and TNFTs in real Estate, the areas where they can play an important role include real estate development and investment. TNFTs can be compared to a real estate syndicate offering transparency, liquidity, and democracy. The Phaeton Real Estate TNFT Platform is currently being built and will launched within the first quater of 2022.
REAL ESTATE PORTFOLIO
Phaeton aims to build a significant property asset portfolio for the next twelve months before launching its trading platform, where stable tokens can be traded. The acquiring of these assets will be sourced through the following avenues.
- Smarter Communities — Phaeton is one of the Smarter Communities Alliance member, made up of professionals who want to change how we develop residential Real Estate. Phaeton’s role in the alliance is to initiate and build housing community projects through capital raising and development expertise. With projects under this structure, Phaeton will own several income-producing properties.
- Solar Farms — The Phaeton Board has given a directive to Phaeton Energy to acquire as much land as possible when securing sites for community solar farms. Wherever there is a power source, development opportunities are created. These can include housing and commercial developments. Our goal is to become one of the largest landowners in Australia.
- Real Estate Exchange Platform — The future Phaeton Real Estate Exchange Platform will not host Phaeton’s portfolio of properties but will allow other property owners to tokenise their properties. Similar to the REIT model (Real Estate Investment Trust), Phaeton will create tradeable Stable Tokens to acquire additional income-producing properties. For example, instead of holding a bank mortgage over the property, owners can liquidate this debt portion into stable tokens, reducing risk and increasing liquidity.
One of the significant advantages Phaeton has over other developers is the ability to lower the risk on marginal projects. By incorporating a Blockchain datacentre and Artemis Node adds additional rental and passive income over and above the traditional rental revenue. This strategy is being applied to the following developments that are being developed.
- Mandurah Life — The proposed Mandurah development has a Development Approval. It is one of several projects based on the concept of an affordable “Senior’s Co-living and NDIS Community Hub” under a “Build to Rent” model aimed at creating a “Social Impact”. The project is located at the Mandurah Station and consists of 32 apartments made up of 10 NDIS apartments and 22 affordable co-living rental apartments. In addition, a commercial section accommodates an NDIS Therapy Hub and an enterprise Coffee Shop to train and provide work for people with disabilities.
- Karratha Care — Phaeton Real Estate has been appointed as the Development Manager to develop a property in Karratha, Western Australia. The project consists of 22 Apartments, 7 NDIS Accommodation Units, a Medical/NDIS Therapy Centre and a Social Enterprise Coffee Shop.