Frontiers · Commercial Real Estate · Ownership & tokens
The investment instrument defines the investor’s rights.
ILLUSTRATIVE · USD · SQ FT · PRE-TAX
Commercial ownership & token rights
Connect a fractional stake to the underlying instrument, vehicle costs, cash calls and transfer constraints.
Pro-rata investor economics
Your stake and the vehicle’s running cost.
Initial investor equity
$2,430,000
Year 1 investor cash
-$33,263
IRR with administration
-0.1%
IRR without administration
0.5%
Administration is an annual whole-vehicle cost and escalates with operating expenses. Your share applies equally to distributions, operating deficits and refinance top-ups.
Property NAV is not a firm token bid.
A transfer requires an eligible buyer, enforceable rights and settlement. A valuation does not guarantee redemption or a secondary market.
There are no preferred returns, sponsor promotes, waterfalls, token trading fees or investor tax in this model. Add contractual terms before using an offering’s projected returns.
Ownership and instrument review
Establish which claim the token actually represents.
| Instrument | Claim to establish | Key questions |
|---|---|---|
| Direct property ownership | Registered title and income rights | Encumbrances, co-owner decisions, borrowing and disposal authority |
| Property entity shares | Residual equity in the asset-owning company | Voting, dilution, cash calls, manager removal and distributions |
| Beneficial interest | Trust or other legal arrangement | Segregation, trustee duties, enforcement and insolvency treatment |
| Real-estate debt | Interest and principal under a credit agreement | Security, priority, covenants, recourse and default remedies |
| Tokenised representation | The underlying instrument and register | Transfer controls, lost-wallet recovery, record reconciliation and custody |
Commercial-specific disclosure
Disclose lease concentration, expiry dates, capital spending, lender restrictions and the source of funds for re-letting. Explain who can approve tenant incentives, extensions, refinancing and a sale. A small fractional holder still depends on these property-level decisions.
Cash calls need an operational process: notice, funding deadlines, dilution or default consequences and emergency authority. A vote that cannot finish before a loan maturity does not solve the funding gap.
Next: the twelve evidence areas before capital moves.
Due diligence →