Funding a Large-Scale Real Estate Project

How a Major Property Developer Used Tokenisation to Fund a Large-Scale Real Estate Project

Real estate developers are increasingly turning to blockchain-based tokenisation as an innovative financing solution for large-scale projects. Tokenisation allows developers to raise capital efficiently while offering investors new ways to participate in high-value property developments. One of the most notable examples of real estate tokenisation is The Aspen St. Regis Resort Tokenisation—a high-end hospitality and real estate project in the United States. This case study explores how the developer leveraged tokenisation to fund the project, the benefits it provided, and how investors profited from their participation.

The Project: Aspen St. Regis Resort Tokenisation

The Aspen St. Regis Resort is a luxury hotel located in Aspen, Colorado, and was among the first major real estate projects to undergo tokenisation. The project was launched by Elevated Returns, a real estate investment firm that sought to innovate property financing using blockchain technology. The tokenisation effort included:

• A luxury hotel property with high demand for fractional ownership.
• Investment opportunities via digital security tokens issued on the Tezos blockchain.
• A total capital raise of $18 million through the sale of Aspen Coins, representing fractional ownership in the resort.

How Tokenisation Was Used to Fund the Development

Elevated Returns created Aspen Coins, a security token backed by equity in the St. Regis Aspen Resort. Investors who purchased Aspen Coins received fractional ownership in the property, similar to holding shares in a company.

Token Structure & Investor Benefits

1. Fractional Ownership – Investors could participate with as little as $10,000, making luxury real estate accessible to a broader investor base.
2. Revenue Share – Aspen Coin holders were entitled to a portion of the resort's profits, benefiting from revenue generated by hotel operations.
3. Capital Appreciation – As the value of the property increased, Aspen Coins gained value, providing potential upside for investors.
4. Liquidity – The tokens were tradeable on digital security exchanges, offering investors flexibility to sell their shares before a traditional property sale.

Benefits for the Developer (Elevated Returns)

• Faster Fundraising: The tokenisation of St. Regis Aspen enabled Elevated Returns to raise $18 million efficiently.
• Cost Savings: Avoiding traditional bank financing reduced intermediary costs and streamlined the capital-raising process.
• Global Investor Access: Tokenisation attracted international investors from multiple jurisdictions.
• Regulatory Compliance: The STO (security token offering) was structured to comply with U.S. securities regulations.

Investor Outcomes & Financial Performance

Investors who participated in the Aspen Coin offering experienced:

• Regular Passive Income: Profits from hotel operations provided steady financial returns.
• Potential Value Appreciation: As Aspen's luxury real estate market strengthened, the tokens increased in value.
• Easy Exit Options: The ability to trade Aspen Coins on secondary markets provided a clear liquidity path.

Conclusion: A Blueprint for Future Developments

The successful tokenisation of the St. Regis Aspen Resort illustrates the power of blockchain in real estate financing. By leveraging tokenisation, Elevated Returns unlocked liquidity, expanded investor access, and streamlined capital raising. For large-scale developers seeking efficient funding solutions, tokenisation provides an innovative, cost-effective alternative to traditional financing. At Tokenetic, we specialise in end-to-end tokenisation strategies, helping developers unlock liquidity and enhance investment accessibility.