With this NFT, you could own part of a glamping resort near Bali
New use cases for nonfungible tokens are continually emerging. Now, one project is combining NFTs with real estate — delivering fractional property ownership.
LABS Group says it is establishing the world’s first community-owned resort, allowing people to purchase a stake in the Kunang Kunang glamping resort. Surrounded by green forests, the property offers 15 private pods and a grand suite. The Indonesian island of Bali is a 30-minute flight away — and local attractions include waterfalls and a breathtaking volcano.
According to those behind this project, traditional timeshares can be full of pain points. Owners of timeshares only have the right to use a property for a fixed number of days per year — and appointments can be exceedingly difficult to make in peak times. The value of these investments can also decrease over time. Now, a new type of NFT has been created to resolve these pain points.
LABS Group is taking a different approach by creating 365 RTS-NFTs, with each token representing 1/365 of the profits generated by the glamping resort.
Although this number may seem rather specific, it’s worth noting that it reflects a specific day in the calendar where the token’s owner will be able to stay at Kunang Kunang, receiving the best room that’s available. And whereas other timeshares can be difficult to sell on, these NFTs can easily be traded on marketplaces based on both Binance Smart Chain and Ethereum.
How it works
The auction for these RTS-NFTs is being held on Refinable’s NFT marketplace — starting on July 15 and lasting for 13 days. Top bidders will be given the rights to name the rooms at the resort. One RTS-NFT will also give the owner the right to name the resort itself, and they’ll also be able to stay at the destination for 10 days per year.
Final touches are now being given to the resort itself, paving the way for a soft opening in December 2021. At present, the grand opening is set to take place in February 2022.
The project is a collaboration between LABS Group and Gravity Resorts, which owns and manages seven properties across Asia. This resort can be found in Banyuwangi, which came second in a list of “10 New Balis.” According to executives, this area has been earmarked for investment by the Indonesian government as it seeks to cultivate the thriving tourism sector.
Yuen Wong, the CEO of LABS, told Cointelegraph: “LABS is a digitised real estate investment ecosystem powered by blockchain. With that, we make real estate investment possible for everyday investors.”
Tokenizing real estate
LABS Group has entered into a number of partnerships, with GCA conducting due diligence, value advisory, property consultancy and feasibility studies.
Overall, it’s hoped that this will make real estate investment more accessible to the masses, rather than just a small pool of established institutions and wealthy investors. Crucially, it’s also hoped that this will inject liquidity into the global real estate market, which data suggests is now worth $228 trillion.
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