MAG, Mantra to tokenise real estate assets valued at $500m

UAE-based real estate developer MAG has signed a strategic partnership with Mantra, an institutional-grade layer 1 blockchain platform, to tokenise $500 million worth of MAG’s real estate portfolio.

This move marks a major advancement in the global tokenised real-world asset sector.

With MAG’s total real estate portfolio valued at over $5bn, the collaboration with Mantra aims to revolutionise real estate investment through blockchain technology. The partnership will start with the Keturah projects — Keturah Reserve in Meydan and Keturah Resort at Dubai Creekside — introducing a real estate financing vault on Mantra’s compliance-ready Layer 1 blockchain.

This initial vault product offers investors an attractive yield backed by the security of blockchain technology.

MAG aims to enhance value and accessibility of real estate offerings

The aggregate transaction value of projects to be tokenised will be $500m, positioning Mantra and MAG as industry leaders in the tokenised real estate market in the Middle East.

Investors in the vault will earn yield in stablecoins and $OM tokens, with an expected return of 8 per cent APY from stablecoins, further augmented by $OM tokens.

The initial vault will also be over-collateralised by a $75m mega mansion at The Ritz-Carlton Residences, Dubai, Creekside development, part of the Keturah Resort. This will be backstopped by MAG’s corporate credit, ensuring robust investor protection while pioneering innovation in real estate investment through tokenisation.

“Working with Mantra allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings,” said Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development. “This strategic collaboration is pivotal and forward-facing as we continue to innovate and lead in luxury real estate development.”

John Patrick Mullin, CEO and founder of Mantra, added, “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 tokenisation, offering global investors access to premium real estate assets in the UAE.”