What if there are major costs or repairs?
The repairs are monitored by the independent property manager. The costs of the works are deducted from the rental income.
What if the property is not rented?
Then the manager will do everything to get the property rented out again as soon as possible. An independent broker will search for a tenant. As long as the property has not been let, the token holder will not receive any income.
What information will I receive as an investor?
Immotokens ensures that token holders are informed of the following, among other things:
- Information from the Manager, such as changes in the rental contracts, repairs...;
- Relevant information about the property;
- Possible changes to the Platform; and
- Invitations to meetings, including the Extraordinary General Meeting of Token Holders.
How many immotokens can I buy?
There is no limit to the amount of investment or the quantity. Go ahead!
What if I want to sell my real estate?
That is perfectly possible! You can sell your real estate to whomever you want. This can be to friends, family or other investors in the property. Currently, the sale is only possible to Belgians. This will be extended in the future.
When will the decision be made to sell the property back?
A fixed end date is set for each property. Every 5 years we organise a poll with all token holders. A 80% majority can then decide to sell the property early.
What if there are minor costs or repairs?
These are carried out by an independent steward, who negotiates the best possible prices. The costs of the works are deducted from the rental income.
Where can I track my investments?
Via the 'My portfolio' button, you can easily follow your investments. On each property detail you will find more information about the operation of that property.
Do I have to pay taxes on the income from my properties?
From a tax point of view, the proceeds of your real estate property consist of 2 components. A 'repayment' component and an 'interest' component. On the interest component you pay withholding tax, which immotokens withhold and pay on your behalf.
When is the rental income paid out?
You can find the payment times in the information note on the property detail page. We pay out the rental income monthly.
How much rental income will I actually receive?
Every 6 months, the manager will communicate a report with an overview of the received rental income and costs. The difference will be distributed between the owners.
Risks around immotokens
For a complete and accurate overview of the risks, please refer to our general terms and conditions and the information note for investors.
Risks around returns and added value
If there is no rental income, as an investor you will not receive a return. If the rental income is lower than expected, as an investor you receive a lower return. If the property is eventually sold, it is possible that this will be for a lower amount than the original purchase value.
Risks around bankruptcy
There is a risk that as a result of the Issuer's bankruptcy, the Token Holders would not be able to recover the amounts to which they are entitled.
Risks associated with the liquidity and value of the immotokens.
Immotokens does not organise a market for trading immotokens amongst each other. You can of course always sell to acquaintances or through forums. Because of this, liquidity is limited.
Ultimately, the property is always sold back, so you get your share of the sale value back.
Risks associated with economic crises.
The risk of rent arrears or vacancy generally increases during economic or health crises.
Risks related to the change in financial regulation or position of the regulator
It is possible that the issuance of immotokens will be subject to stricter or amended regulations in the future, or that the relevant regulator will revise its position in this respect. If so, immotokens may incur costs to bring itself into compliance, which may have an impact on Revenues.
Risks around the property
Real estate ages over the years. It is therefore possible that additional investments may be necessary, which will be offset against rental income if necessary.
Other risks may include, but are not limited to, soil contamination, expropriation, asbestos, natural disasters, war, terror, other calamities, and damage or costs not covered by fire or other insurers.
However, prior to the purchase of the Property, a thorough due diligence shall be carried out to avoid these issues.
Is there a difference between token holders?
The Offered Real Estate Certificates have the same ranking among themselves (pari passu).
How is the sales result calculated?
In the settlement of the Immotokens, the difference between on the one hand:
- The proceeds of Transfer of the Property;
- Any undistributed rental income; and
- The sales proceeds of the Issuer's other assets;
and on the other hand:
- The reasonable costs associated with the Transfer of the Real Estate, including customary broker's fees and any other costs that may have been incurred by the Issuer. These costs are calculated at 3.0 % in addition to the salary of the broker appointed at the time of the Transfer of the Real Estate;
- The reasonable costs, interests, fees and capital repayments of the bank loans, if any, taken out for the benefit of the Real Estate;
- All tax charges, insofar as these are due in connection with the Transfer of the Property or when setting up the operation;
- The paid-up equity capital of the Issuer;
- Other payables and trade payables, excluding the recorded receivable from the Token holders;
- An amount that allows for the payment of corporation tax and other possible taxes and levies owed by the Issuer in connection with the Immo Debt Tokens and the Real Estate; and
- Any other reasonable costs not yet charged;
Who supervises immotokens?
Immotokens is not a regulated or licensed company. Nevertheless, the FSMA will supervise the Issuer in order to guarantee a sufficient degree of investor protection. The investor's attention is also drawn to the fact that the Issuer will not or cannot provide him with Investment Advice in connection with the issue or purchase of the Offered Immo Debt Tokens.
What are immotokens legally?
The Offered Real Estate Tokens (full term is Immo Debt Token) are "tokenised" debt instruments that incorporate rights to the revenues, income and realisation value of the property determined at the time of issue. An Immo Debt Token is not a bond: the return is not fixed and can only be paid out if there is sufficient (rental) income. Nor is there any capital guarantee at maturity. The Token holders are only repaid on the transfer of the Immovable Property on the basis of their share in the sale price.
The Offered Real Estate Debt Tokens are created via DLT. In particular, each transaction with an Offered Real Estate Token constitutes a block on a Chromia blockchain, and the Offered Real Estate Debt Tokens can be traded on this blockchain.
The Offered Immo Debt Tokens are subject to the respective rights and obligations set forth in the Terms and Conditions of Issuance, to which each Tokenholder is required to adhere prior to being able to subscribe to the Offered Immo Debt Tokens. The rights and obligations remain attached to the Offered Real Estate Debt Tokens, regardless of the hands they may fall into.
The Offered Real Estate Debt Tokens are indivisible.
Is a prospectus written for the issuance of immotokens?
An information note is issued for each issuance of real estate characters. This document is not a prospectus and is neither audited nor approved by the Financial Services and Markets Authority.
Which costs are for the investor?
The costs relating to the Real Estate will be charged or passed on to the Token Holders, including, inter alia: the remuneration of the management controller, property tax and other land charges, the costs relating to the Platform, insurance, the Issuer's capital cost, etc.).
How is the operating result calculated?
The amount to be paid out annually in respect of the financial year of the Issuer, which consists of the difference between, on the one hand
- The total rental income of the Property;
- The income from all temporary investments related to the real estate operation;
- The other receipts insofar as they relate to the Property, such as interest on arrears, indemnities of all kinds, recognition of unspent provisions and proceeds of all kinds relating to the Property;
and on the other hand:
- The reasonable costs, fees, charges, costs of repairs and all kinds of provisions borne by the Issuer in relation to (i) the Property, (ii) the activity of the Issuer in its capacity as owner or issuer of the Immo Debt Tokens including the operation of the Platform, and/or (ii) activities of the Manager. These costs are calculated at 3% of the gross rental income;
- The reasonable costs, interests and capital repayments of the bank loans or other financings, if any, contracted for the benefit of the Property;
- A deduction, if any, to form a provision for future maintenance and repair costs. The amount is determined by the Issuer and must be approved by the Management Company;
- Reasonable costs relating to the remuneration of the property appraiser, the costs of accounting as well as all possible expert fees;
- An amount that allows for the payment of corporation tax and other possible taxes or levies owed by the Issuer in connection with the Immo Debt Tokens or the Real Estate; and
- Costs related to vacancy and neglect;