A European CIO, in a recent report done by PricewaterhouseCoopers LLP (US firm) titled Emerging Trends in Real Estate 2021, has said that “the shape of things to come depends on harnessing the virus spread and the effectiveness of the policy response. Whilst we hope that we are through the worst, we’re not out of the woods yet.”
It’s more than a year after the outbreak of COVID-19 and real estate industry is still facing many challenges especially with the long-term consequences from the disruption to the way people live and work, says the report. But the industry leaders who have spoken in the report are hopeful of consumer-spending-led economic recovery feeding and an uptrend in real estate business in the second half of 2021. This clearly shows that LandOrc is going in the right direction. But these depend on the rollout of the vaccine and an easing of lockdown restrictions, globally.
The general view is that Asia Pacific is leading the recovery, partly because the region’s major economies went into the pandemic in better shape, compared to most Western economies. Global investors are increasing their allocations of capital to the region mainly because they managed the crisis well. LandOrc has already set foot in India and they are in discussions with many other Asian countries for their unique lending platform. Most industry leaders interviewed for the report also believe the inherent attraction of real estate income is even stronger this year than in pre-COVID times.
It further reports that lenders are expected to adopt far more cautious approach to real estate this year and next compared with equity investors. They expect a tougher lending criterion by banks since they believe government support packages might end that will increase debt. In contrast, LandOrc is aware of these situations and the reason why they request for collateral from developers before lending them, supported by local SPVs (Special Purpose Vehicles).
LorcFinancing under LandOrc offers to real estate developers and / or land owners who want to raise fund for their projects, an opportunity to raise liquidity through the crypto ecosystem at a relatively lower rate by collateralizing their real estate assets and/or projects. This is subject to clearance from voting process via Land Governance Tokens (LGOV).
Once clearance is obtained for LorcFinancing and its corresponding LandNFT being issued, the participating real estate developer will have to provide a land collateral at an overcollateralization ratio of two-times (2x) over the aggregate financing amount. The asset collateral will be pledged to the local SPV that is affiliated with LandOrc. The overcollateralization ratio of 2x is to ensure sufficient liquidity cover in the event of a force-sale situation. Funds will only be released after completion of all these processes.
LandOrc would enable real estate developers to gain access to a global capital marketplace as well as borderless crypto ecosystem, allowing them to secure financing at a comparatively lower interest than their domestic markets and without costly fees, slow processes and restrictive conditions that is typical of mainstream financing options like banking loan. This is, indeed, an emerging trend in Real Estate.
At the time of writing LandOrc’s private sale is going on and. You can go through the following link to purchase your limited LORC tokens that is selling fast: https://landorc.io/private-sale.html
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