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„REDINFING REAL ESTATE: �EXPLORING Real World Asset“�TOKENIZATION

21. February 2024

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Who we are?

BRICKMARK Group is a leading Swiss FinTech company and a global pioneer and recognized leader in the tokenization of real world and real estate assets providing the infrastructure to build, issue and manage digital real estate assets and digital securities:

“Providing universal access to worlds prime real estate in a digital, secure and efficient way”

The BRICKMARK Difference

Real estate is the world’s largest asset class, with an estimated value of more than $300 trillion

– over three times the value of the global stock market ($72 trillion).

But almost 93% of the world’s real estate assets ($272 trillion) is currently illiquid.

We help to unlock these values and provide access and liquidity to investors worldwide.

€ 166 m

Value of Transactions Completed

€ 1,24 b

Projects in Preparation

25k+

Registered Investors

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  • According to the latest Citibank, McKinsey and BCG research tokenization of real-world assets and securities is getting mainstream and could reach $10 – 16 trillion market cap by 2030

  • Unlocking value and providing Access and Liquidity in the world largest asset class asset real estate

  • BrickMark developed a digital infrastructure platform BRICKGATE

  • Our target markets are estimated to reach $2 – 2.5 trillion in size by 2030

Tokenization – a multi $trillion ”killer use-case”

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“The next generation for markets, the next generation for securities, will be tokenization of securities and real-world assets”.

Larry Fink, CEO of BlackRock (March 2023)

 

Big Players enter the game…

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New Opportunities in Financing

Benefits of Tokenization for Property Owners, Investors and Service Providers (McKinsey 07/23)

IMPROVED CAPITAL EFFICIENCY

LOWER COST OF CAPITAL AND FREE UP CAPITAL IN TRANSIT, REAL-TIME SETTLEMENT

DEMOCRATIZATION OF ACCESS AND WEATLTH

ACCESS TO NEW SECONDARY MARKETS; GREATER LIQUIDITY

ACCESS TO NEW POOLS OF CAPITAL WITH LOWER MINIMUM INVESTMENT REQUIRED

OPERATIONAL COST SAVINGS

OPPORTUNITIES TO EMBED MANUAL AND ERROR-PRONE PRODUCT-STRUCTURING AND

ASSET-SERVICING TASKS INTO THE TOKEN SMART CONTRACT

ENHANCED COMPLIANCE, AUDITABILITY AND TRANSPARENCY (ESG enhancement)

EMBEDDING OF RULES AND CREDENTIALS INTO THE TOKEN SMART CONTRACT

(EG, INVESTOR QUALIFICATION, CARBON CREDIT VERIFICATION)

CHEAPER AND MORE NIMBLE INFRASTRUCTURE

OPEN-SOURCE TECHNOLOGY DRIVEN BY THOUSANDS OF WEB3 DEVELOPERS AND

BILLIONS OF INVESTMENTS DOLLARS

ASSET OWNERS

SERVICE PROVIDERS

INVESTORS

REVENUE OPPORTUNITY

COST EFFICIENCY

REVENUE OPPORTUNITY

COST EFFICIENCY

REVENUE OPPORTUNITY

COST EFFICIENCY

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Our proprietory platform BRICKGATE has become the 1st vertical tokenization hub for

real estate, infrastructure and sustainable assets in Europe since its launch in June 2023

Insurance /

Pensions

Private Property

Owners

Funds

Developers

Institutions

Exchanges

Retail

Investors

KYC / AML

Banking Services

Custody

Tokenization Process

Distribution

Real Estate

Asset

(Debt, Equity or right of Property SPV)

Token/NFT

Qualified

Investors

Brokers /

Dealers

buy + sell

buy + sell

Direct Placement

$

BRICKGATE: Tokenization-as-a-Service

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Industry leading best practice: Regulatory framing and agile managed implementation of on-the-fly digital asset tokenization (FINMA, FMA, BaFIN compliant)

Support of regulatory conformity

Agile managed implementation and governance

Origination /

Digital assets regime

Distribution /

Investment community

Product /

Token

Phase I: 30- 90 DAYS

Phase II: 3 – 6 MONTHS

Phase III: Operational

Structuring /

Due Diligence

  • Business case Validation
  • Token characteristics
  • Initiation legal framing

Configuration

  • Origination (legal setup)
  • Onboarding (AML, KYC)
  • Banking services (FIAT, Accounts)

Tokenization

  • Issuer- / Investor Setup
  • Token configuration

Integration / Connectivity

  • Custody Configuration
  • integration
  • Launch

Digital Asset Servicing / Lifecycle Mgmt

  • Corporate actions
  • Custody
  • Transactions

Burning / Redemption

  • Decompose
  • Terminate security and eliminate token

Validation and Prodution

Termination

Tokenization

Initiation

BRICKGATE platform service

Regulatory Compliant

Regulatory Monitoring

mostly established by Brickmark group

high issuer contribution obligation

value driven by BrickGate TaaS platform

value driven by business case

Regulatory dimension to be clarified by issuer

After go-live regulatory implementation requires continuous monitoring

Tokenization Practice ©

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Tokenization of CHF 130m prime property in Zurich

Dr. Alexander Koblischek

Managing Director of RFR Management

"We gladly accepted the Brickmark token as part

of the purchase price. We assume that digital financial instruments will also significantly gain in importance

in the real estate sector in the future."

Proof-of-Concept: In January 2020 BrickMark completed the largest ever real estate tokenization on the blockchain.

The transaction was also highlighted as a milestone in the sector in research studies of University of Oxford and the MIT.

Successful Use Cases

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Originally Designer by Horace Field in 1904, Mansion House is the epitome of British elegance and design right next to Westminster Abbey.

  • The Mansion has 7 bedrooms, 10 bathrooms, Roof terrace, an Indoor Pool & Spa, an 8 person lift, a Grand entrance hall and a Bar and Cinema room
  • Token Investors will receive bonus points for staking their MH token which can be converted in renting time / event booking.
  • Issuer will offer a subordinated note with a 7% coupon with a projected 11% IRR over 5 years.

MANSION HOUSE, LONDON (U.K.)

Selected Tokenization Projects

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Source: SDX

Issuer

SIX Group AG

UBS AG, London Beanch

City of Lugano

Status

Senior, unsecured

Senior, unsecured

Senior, unsecured

ISIN

CH1142754337 (D) / CH1142754345 (T)

CH1228837865

CH1232107172

Issuance Date

29 November 2021

3 November 2022

1 February 2023

Size

CHF 150m

CHF 375m

CHF 100m

Coupon

0.125% p.a., fixed

2.330% p.a., fixed

1.625% p.a., fixed

Form

Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of

Obligations

Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of

Obligations

Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of

Obligations

Intermediated securities

Intermediated securities by entry into the main register of SDX (Dig.) and main register of SIS (Trad.)

Intermediated securities by entry into

the main register of SDX

Intermediated securities by entry into

the main register of SDX

Conversion option

Yes, exchange into other ISIN

Not Applicable

Not Applicable

Listing

SDX Trading (Digital) / SSX (Traditional)

SDX Trading and SIX Swiss Exchange

SDX Trading and SIX Swiss Exchange

Settlement and clearing

SDX CSD (Digital) / SIX SIS (Traditional)

SDX CSD and SIX SIS (via operational link)

SDX CSD and SIX SIS (via operational link)

Documentation

Standalone Prospectus

Standalone prospectus, closely aligned to UBS AG EMTN

Standalone Prospectus

Swiss Bond Index Eligibility

Yes

Yes

Yes

SNB Repo Basket Eligibility

No

No

Yes

SIX Group Inaugural dual part Bond

(Digital & Traditional part)

UBS Inaugural Digital Bond

City of Lugano

Inaugural Ditigal Bond

Examples of Digital Bonds on SDX

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Benefits from Tokenization for improved ESG-Standards

  • Efficient Resource Allocation: Tokenization can enable more efficient allocation of resources in real estate projects. With fractional ownership and the ability to trade tokens in secondary markets, capital can flow more easily to projects that prioritize ESG considerations (i.e. Green Bond Framework). Developers be incentivized to adopt sustainable practices and incorporate social initiatives to attract investors and maintain liquidity in the secondary market > Environmental & Social Impact

  • Accessibility: Tokenization allows for fractional ownership, meaning that smaller investors can participate in real estate projects that were previously inaccessible to them > Social Impact

  • Transparency and Improved Accountability: Smart contracts and Blockchain technology, which are used in tokenization, provide a transparent, public and immutable record of transactions and activities. This can enhance accountability in real estate projects and ensure that ESG commitments are upheld. Investors can track and verify the implementation of sustainable practices, and any discrepancies can be easily identified and addressed > Governance Impact

  • Incentives for ESG-Performance: Tokenization can introduce new mechanisms to incentivize ESG performance in real estate projects. Tokens could be designed with built-in governance features that allow token holders to vote on ESG-related decisions or allocate resources to specific sustainability initiatives.

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BETA Version to be launched in Q1 2024

 

Outlook: BRICKGATE goes mobile

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BRICKMARK – The Future of Real Estate Investing

Thank you!

Please contact us for further questions:

Stephan Rind

Founder & CEO 

s.rind@brickmark.net

“The token market will be larger than the securities market, because in some way it will absorb the securities market. All the securities can be tokenised today. The beauty of the token is that you can represent anything, and not only securities, and that is what will drive at first the growth of the token.”

Etienne Deniau, Head of Business Strategy, Société Générale Securities Services

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Disclaimer

This presentation is strictly confidential to the recipient and has been prepared by BrickMark Group AG (the “Company”; together with its affiliates, the “Group”) solely for information purposes. By attending or receiving such presentation, you agree to be bound by the following terms.

This presentation may not be reproduced, retransmitted or further distributed to the media or any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities and/or tokens of the Company or the Group in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation does not constitute a prospectus or a similar communication within the meaning of former articles 752, 652a and/or 1156 of the Swiss Code of Obligations, articles 35 et seq., 69 or 90 of the Swiss Financial Services Act or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or any other trading venue. The information contained in this presentation has not been independently verified. Neither the Company nor any affiliate of the Company are under any obligation to update or keep current the information contained herein. Accordingly, no representation or warranty or undertaking, express or implied, is given by or on behalf of the Company, its affiliates or any of their respective members, directors, officers, agents or employees or any other person as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained herein. None of the Company, its affiliates or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

Neither the presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. The presentation is not an offer of securities or tokens for sale in the United States. Neither the Company nor any of its affiliates have registered and do not intend to register any portion of the token sale in the United States or to conduct a public offering of any securities in the United States. The Securities may not be offered or sold in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act.

Additional restrictions may apply according to applicable securities laws of other jurisdictions, including, without limitation, the European Union, Italy and the United Kingdom.

This presentation includes forward-looking statements, beliefs or opinions, including statements with respect to plans, objectives, goals, strategies, estimated market sizes and opportunities as well as strength of competitors which are based on current beliefs, expectations and projections about future events. The words "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "may," "should" and similar expressions identify forward-looking statements. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, management's examination of data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. Neither the Company nor any of its affiliates, nor any of its members, directors, officers, agents, employees or advisers intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this Presentation.

The information and opinions contained herein are provided as at the date of the Presentation and are subject to change without notice.

ALL RIGHTS RESERVED. © BRICKMARK GROUP AG, ZUG, SWITZERLAND