Global REIT (GRET/GREM) Basic Review
|Start ICO||01 Jun 2018|
|End ICO||30 Jun 2018|
Name: Global REIT
Ticker symbol: GRET
Project type: Investments, Real Estate
Extended company description: Global REIT is an investment platform that allows investing in real estate.
Start of Public ICO: 01.06.2018
End of Public ICO: 30.06.2018
Token sale duration (weeks): 4
Token type: ERC-20
- GREM: 200,000,000
- GRET: 75,000,000
Tokens available in sale (Pre-Sale + Public ICO):
- GREM: 79,285,714
- GRET: 16,650,000
Funds received from the sale of all GREM tokens will be used as follows:
- 35% - sales and marketing.
- 30% - fixed remuneration for the team.
- 15% - administrative costs (office, IT, server maintenance, taxes, etc.).
- 10% - legal & regulatory costs.
- 5% - audit expenses.
- 5% - other unforeseen expenses.
Funds received from the sale of all GRET tokens will be used to purchase part of the acquisition cost of the first asset.
- GREM: USD 0.070.
- GRET: USD 1.
Accepted currencies: BTC, ETH, USD
Token role: functional
Team (number of people): 4
Advisors and partners (number of people): 6
Global REIT is an investment platform that specializes in investing in real estate.
The portfolio of Global REIT will include various assets throughout the world, such as hotels, apartments, houses, shopping centers, etc.
Global REIT will allow users:
- to diversify their portfolio of assets.
- to receive income from the sale of real estate or rent.
- to receive dividends.
- to participate in the loyalty programs of investment projects (for example, hotel business).
- Behzad Khan (LinkedIn) - Chief Financial Advisor for Global REIT. Previously he worked as the Head of Finance at Al Hamra Group LLC.
- Babar Ahmed (LinkedIn) - Chief Technical Advisor at Global REIT. He is the Founder and CEO of Stealth Startup. He is also the Co-Founder and CEO of Mindstorm Studios.
- Vladimir Nikitin (LinkedIn) – Strategic ICO Advisor for Global REIT, Advisor at Evo.Live, ICO Advisor at CookUp, lagon, Bulleon.io and Decoin (DTEP).
- Nikolay Shkilev (LinkedIn) - ICO Consultant at Global REIT, Strategic Advisor at CookUp, Co-Founder of TOP ICO ADVISORS. He was a Strategic Advisor at Decoin (DTEP), EVO.LIVE, He used to work as an ICO Consultant at EtherInc.
- Rumen Slavchov (LinkedIn) - Advisor for Global REIT, Business Development Consultant at EVO.LIVE, Advisor at EtherInc, DICE Money and LCCX.
- Phillip Nunn (LinkedIn) – Advisor at Global REIT, CEO of Wealth Chain, Advisor for TraXion by Pluma Technologies, CEO of The Blackmore Group.
- MME – legal partner. MME is integrated tax law firm.
- Deloitte - audit partner. Deloitte is a consulting and audit firm and one of the "Big Four".
- AmaZix - ICO strategic advice. This company is engaged in consulting on cryptocurrencies and ICOs.
- Renowned & Co - marketing partner. Renowned & Co is engaged in advising on blockchain marketing.
Investment attracted: N/A
The project is based on an investment fund platform which allows investing in real estate.
Strengths of the project:
- According to the Road Map, the project has an MVP, which is under testing.
- An experienced team and advisors.
- The presence of a legal partner, which will deal with the distribution and confirmation of shares in the company.
Weaknesses of the project:
- The market chosen by the project demonstrates low growth rates.
- The information on the potential investment portfolio is not disclosed, which raises doubts about the profitability of Global REIT. However, according to the team: all properties purchased will be independently valued by CBRE or Cluttons. Once a property is finalized and acquired it will be published online and afterwards ongoing valuations will be published every 6 months. So, the Real Estate Investment Trust (REIT) will publish a Net Asset Value (NAV) every 6 months.
Market and Industry
According to the PWC report, the real estate market will grow and become more global. It is expected that growth will be about 7% per year for the next 2 years due to the stabilization of the world economy and investment growth. We also note that the growth of investments in the housing sector is low - 6.8% per year. This trend is expected continue until 2020. [https://www.pwc.com/sg/en/real-estate/assets/pwc-real-estate-2020-building-the-future.pdf]
According to the project team’s analysis, the market capitalization of the real estate sector in the US has tripled to $1 trillion over the past 10 years. In Europe, the market capitalization of the real estate sector grew from $150 billion to $200 billion. In Asia, the REIT sector grew by almost two-thirds - from $135 to $213 billion, according to Consilia Capital.
Comments: The pace of the real estate market (including investments) demonstrates a mature trend, which is characterized by moderate growth with the presence of established regional players. Undoubtedly, the volume of the global real estate market is very large, which can help the project to occupy its target niche. However, a mature market will require more investment to restructure it than new emerging markets would.
In the course of our research, we have identified the following competitors:
- Fundrise – a platform for investing in real estate.
- Brickvest – a platform for investing in real estate.
- Blackstone – a real estate investment fund.
Summary: The key difference of the project from its competitors is the possibility of investing in cryptocurrency.
Engineering Features of the Platform
The platform is built on blockchain.
Global REIT includes the following components:
- An asset management module.
- A compliance and security module.
- A transaction module.
The platform components work as follows:
- Asset management module. This module allows investors to view the list of assets listed on the platform with all the details, such as exchange rates, NAV, dividends, holding intervals, minimum investment and general information on the market.
- Transaction module. The transaction module handles all API calls and checks all transactions.
- Compliance and security module. The module serves to provide a 24/7 security level by implementing thorough industry standard checks and balances for all parties involved in transactions, ensuring that fraud is eliminated in the system. In addition to integrating third-party vendors with KYC and AML providers, the system implements security measures and military-level protocols to ensure system reliability.
The ecosystem of the platform includes the following participants: investors, owners of assets (real estate) and Global REI. Interaction between the participants is as follows:
- The investor invests cryptocurrency (BTC, ETH) in the fund.
- The asset owner or broker registers its asset in the database with the help of Global REIT.
- Global REIT confirms receipt of funds from the investor in a notarized form.
- The funds are transferred to the asset owner.
- The investor receives tokens and becomes the co-owner of the asset.
Comments: The project uses existing technologies that have already been proven in the market.
In the future, with the development of technology and the amount of data, the team plan to implement:
- February 2018 - launch of the blockchain platform.
Comments: According to the WP, the project has completed the development of the platform and now it is focused on acquiring assets for the investment fund. Currently, it is not possible to see the smart contract.
We have analyzed the Global REIT website and documentation for sufficiency and consistency for making an investment decision.
The website also provides information about the project, the RoadMap, the ICO, the team, advisors and partners. The website is presented in English.
Summary: The documentation provides a comprehensive view of the project. The documentation describes the project in sufficient detail.
Percentage of tokens intended for sale: 35% of the total emission:
- GREM: 39.6%
- GRET: 22.2%
Start of Public ICO: June 01st, 2018
Token type: ERC20
Accepted currencies: BTC, ETH, USD
- 1 GREM: USD 0.070
- 1 GRET: USD 1.000
Crowdsale duration: 4 weeks, until June 30th, 2018
The project will offer two types of tokens:
1. GREM token. This token will give owners the right to receive investment. The investors need to keep a certain number of them to receive a reward.
2. GRET token. This token will allow owners to receive discounts and bonuses from partners and property owners Global REIT invested in.
- GREM: 200,000,000
- GRET: 75,000,000
Advantages for token holders: Tokens will allow holders receive dividends and discounts.
Additional emission: No
The Token Sale will be implemented in two stages:
- Pre-ICO. May 1st, 2018 - May 31st, 2018;
- Public ICO. June 1st, 2018 - June 30th, 2018.
Hard cap: $20,000,000
Soft cap: $5.000,000
Comments: When purchasing tokens, users will receive 25% of GREM and 75% of GRET for the amount paid. All tokens unsold during the ICO will be burned.
A total of 5,500,000 tokens will be allocated to the bounty (2% of the total emission). The bounty program is split into the following areas:
- 7.5% - twitter.
- 7.5% - translation and moderation.
- 30% - Bitcointalk subscription campaign.
- 7.5% - Facebook.
- 30% - content creation.
- 5% - advertising on Telegram.
- 5% - subscription to e-mail newsletter.
- 2.5% - subscription to the project in Cryptocompare.
- 5% bonus.
Summary: The project has an extensive bounty program. All conditions of the program are shown in the link above. Rewards will be distributed within 30 days after the completion of the Token Sale.
Token and Capital Distribution
Tokens and capital are distributed according to the following scheme:
Summary: Tokens do not affect the distribution of shares in the company. The incentive system is set up in such way that it is more profitable to buy tokens in advance. We note that most of the tokens, 60% of GREM (Fund Manager token) and 78% of GRET (Asset token), remain on the side of the project.
- June 2018 - acquisition of the first assets (Hotels).
- July 2018 - payment of the first dividends.
- August 2018 - acquisition of the second pool of assets (Residential buildings).
- October 2018 - acquisition of the third pool of assets (Shopping centers).
- December 2018 - acquisition of the fourth pool of assets (Hotels).
Summary: The project presented a strategy for the formation of an asset portfolio. The strategy is based on the following diversification: different types of assets (hotels, shopping centers, residential areas, etc.) in different countries.
The team consists of 4 people and 6 advisors. Information about the main team members based on their LinkedIn profiles is presented below:
- Ali Tumbi (LinkedIn) – Founder of Global REIT, Owner of Alton Constructions LL.C, Founder of Dealtoday.pk and HOAM - Highrise Owners Association Management.
- Paul Christodoulou (LinkedIn) - Chief Operating Officer at Global REIT, Managing Director of Gulf Sotheby's International Realty, previously, he worked at Aqua Properties as an COO and he was also the Chief Executive Director of Kendal & Co.
- Vijay D Vyas (LinkedIn) - Director of Acquisitions in India for Global REIT, Owner of NEI Technologies Pvt Ltd, Co-Owner of Colombo Lions, T10Cricket League, and Managing Director and CEO of Theseus Ventures Ltd.
Summary: Most of the team members indicated their affiliation with the project. The team is mostly from the UAE. There is also a blockchain developer in the team.
Information about the project is available on various popular services such as Twitter, Telegram, Medium, Slack, LinkedIn, Facebook, BitcoinTalk and YouTube. The project has a Bounty program.
The team conducts an advertising campaign on social media. News about the project is regularly updated on Twitter and Facebook and videos are posted on YouTube. The format of the articles about the project shows that they were written, mainly by the order of the team, as a review of the project.
Comments: Users are just getting interested in the project. The marketing campaign is developed mainly on Twitter and Facebook.
Traffic analysis of the Global REIT website based on data from Similarweb.com showed the following:
Traffic source: https://www.similarweb.com/website/globalreit.io
Comments: direct link: 100%, referrals: 0%, search: 0%, social media: 0%, mail: 0%
Traffic through search: 0%
Referral links: 0%
Social activity analysis of the Global REIT website based on data from BE1.ru showed the following:
Traffic source: [https://be1.ru/stat/globalreit.io]
Comments: The countries visitors: Bulgaria - 81.07%, United Arab Emirates - 18.93%
Summary: Based on the available data, it can be concluded that the level of users’ interest is low. The team conducts an advertising campaign on Twitter and Facebook, communicates with users on Telegram, uploads videos to YouTube and participates in various events and competitions. Over the past month, the number of visits has increased by 500 people.
The developers may be contacted using the links below:
The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.
Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.
We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.