The Frank Salt Real Estate Group and Angel Labs are collaborating on a new blockchain-focused real estate tech fund. Grahame Salt and Tugce Ergul tell the Times of Malta how this fund will make a difference in Europe.

Blockchain has pushed the fast-forward button on the world of commerce, finance and technology so hard, that even well-informed observers are struggling to keep up. Those less informed are further back in the race, possibly still trying to understand the distinction between, say, blockchain and Bitcoin, or how the former affects all economic sectors, including real estate.

“A major change in any market can be seen as either an opportunity or a disruption,” says Grahame Salt, a director of Frank Salt Real Estate.

“Blockchain is still relatively in its infancy but already one can see the opportunities that will come with it. It will allow us to do what we already can do but more efficiently, while potentially helping us develop applications that wouldn’t be feasible today.

“I think the real estate sector should embrace the new technology and the opportunities offered and developed and use them to improve and disrupt the traditional ways we do things.”

Blockchain will also potentially affect all elements of the real estate sector, from sales and rentals to commercial and residential.

“Ultimately, all elements are linked and the same applications would apply to most sectors of the market. Software developers will be working together with potential end users to come up with applications that will benefit the industry. 

“In the real estate sector, blockchain developments can be beneficial to both agents and customers. If blockchain allows us to operate in ways we previously couldn’t, end users would ultimately benefit. Examples that come to mind are better collection and analysis of historical transaction information, sharing of information between strategic partners, faster and better user interfaces, better security of information and so on.”

Frank Salt Real Estate has partnered up with investor accelerator Angel Labs, founded by Tugce Ergul, to develop a new blockchain-focused real estate tech fund.

“It is exciting to think of what can be achieved,” Mr Salt says.

“Our aim as agents is to always enhance and improve client experience by making a real estate transaction as easy and straightforward as possible, from the early stages of search to actual contract stages.”

For Ms Ergul, blockchain will revolutionise all businesses, including real estate.

“There is a lot being written about blockchain, bitcoin and related technologies, and for many real estate professionals, this is part of a brave, new, confusing world of technology.

Players who acknowledge this change and are willing to understand this new technology will be leading the future of the blockchain world

“For real estate, blockchain has the potential to change the way we do business. We are developing smart contracts which will enable real estate contracts, escrows and property records such as deeds to be completed and monies distributed without title companies or attorneys. These contracts are often compared to a vending machine concept: you deposit your money, and the machine delivers a product with no human intervention.

“Frank Salt Real Estate is making an extremely smart move to jump on the bandwagon to become one of the thought leaders in the real estate world, focusing on how blockchain will disrupt the industry’s future.”

The Angel Labs co-founder thinks that real estate professionals like Frank Salt Real Estate will thrive in the blockchain era.

“The advice, knowledge and hand-holding of real estate professionals will always be an important part of the buying and selling process. However, the handling of money and transactions will inevitably change, and that change is already under way. Brokerages will need to adapt their business models to understand and enable smart transactions but otherwise will continue to thrive in the era of blockchain. That’s why players who acknowledge this change and are willing to understand this new technology will be leading the future of the blockchain world.”

For Ms Ergul, blockchain puts real estate on a new footing.

“If blockchain has the potential to increase liquidity and reduce costs, then significant barriers for investors are removed. And if unitisation of direct property holdings can be achieved or if income streams derived from direct property holding can be split, it can also decreases the ‘lumpiness’ of real-estate investment; the barriers between real-world holdings and synthetic derivatives start to break down, making investment liquid, transparent and instantly tradeable.

“The technology has significant potential to drive transparency, efficiency, and cost savings for real estate owners by removing many of the existing inefficiencies in key processes.”

Of course, preparation is key.

“It is still relatively early days, but we are studying developments closely and making sure our team are well educated, through the right programmes,” Mr Salt says. “We have over the last 50 years kept at the forefront of technology and are already in discussions with blockchain software developers to see how their technology and applications could be used within our field.

“We are very excited to have teamed up exclusively with Angel Labs to help us develop Malta’s and indeed Europe’s first blockchain real estate tech fund. We shall be inviting developers to present their ideas. Angel Labs will then assist us in deciding which of these have the most potential for further development and investment. This is very exciting for Malta also as we can attract more smart, energetic and talented entrepreneurs to come and operate out of Malta.”

Grahame Salt is an executive director of the Frank Salt Real Estate Group and manages Berkeley Investments, which is the group’s real estate investment company. He is actively involved in the development of residential and commercial sites as well as other longer-term real estate investments. With over 22 years of solid experience in the real estate business in Malta, he is viewed as a leader in the local real estate industry and a specialist in the sale and leasing of large developments, luxury real estate and commercial buildings.

Tugce Ergul is a co-founder at Angel Labs, the world’s first investor accelerator with a strong focus on diversity and inclusion. Before founding Angel Labs, she worked as a managing director at Startup Labs. Angel Labs operates in 45 countries to supercharge investor communities and empower high-net-worth individuals, family offices and executives worldwide. She is an active member of the European VC network and speaks on entrepreneurship, economic development and technology at events around the world.

They will be speaking at the Delta Summit being held today, tomorrow and on Friday.

www.delta-summit.com