Project B11G

A European Real Estate Project.
Powered by Blockchain.
The B11G Facility for Industrial Start-ups.

Betooni11g, Tallinn, Estonia

First fundraising round is over and we have successfully raised capital to proceed with the project.
If you are interested in investing into B11G or have any other questions, please contact info@b11g.eu

About B11G

The B11G Industrial Complex,
powered by blockchain

We’re building a state-of-the-art industrial complex for small and medium-sized companies and we want to share the experience with you. We’re raising 1.1m EUR, offering lenders an interest rate of 14% per year, with a maturity date of 24 months after issuance. The name B11G is shorthand for Betooni 11G, the address of the 4,000+ m2 facility we are developing in the heart of Estonia, one of the Eurozone’s fastest growing economies.

With this project, we are materializing the incredible potential of borderless financing made possible by blockchain. While this will be our first blockchain-powered project, this will mark our 11th such project, our time-tested, prudent and proven business model provides other like-minded blockchain enthusiasts with an excellent investment opportunity through real estate. Together with our partners, which specialize in all areas of blockchain, our expertise in the real estate market brings forward a project of true innovation and value. We couldn’t be more excited to share this experience with the world through the power of blockchain.

Project Overview

Located in one of the fastest growing industrial zones in Northern Europe, the facility will be built in an industrial park, minutes away from the centre of Tallinn, the capital of Estonia. The B11G facility provides a very unique proposition, offering a space for offices, production, warehousing, as well as showrooms, all in the same location. It will be tailored to meet the needs of companies in the industrial sector, enabling innovation in the industrial process of converting raw materials to finished goods and products.

What are we offering the client?

Short Contracts

Short Contracts

Short contracts to meet market demands.

Short Contracts

Lower Rent

Rent costs 20% lower than market prices.

Short Contracts

Technology

State-of-the-art construction technology

Short Contracts

Solar Panels

Environmentally friendly energy supply with built-in solar panel solution

Project B11G will allow people all over the world to share in the profits of an industrial real estate development project. The B11G industrial lot will serve a much needed market, providing multifunctional spaces for small and medium-sized businesses.

Address Betooni 11G, Tallinn, Harju County, Estonia
Land Plot Cadastral ID 78401:101:1213
Total Plot Size 10,092 m2
Total Building Size 4,126 m2
Number of Leasable Units 38
Rent Price €7 /m2
Development Budget 3,600,000 EUR
ILP Fundraiser Target 1,100,000 EUR
ILP Interest Rate Offered 14% per year
ILP Maturity 24 months

Checkout the project’s pre-order status.

B11G schedule

2019 Apr.

ILP fundraising

2019 May -
2020 Mar.

Construction works

2019 Oct.

Interest payment

2020 Apr. -
2020 Dec.

Business development

2020 Jan. -
2021 Mar.

Sale of the property
to strategic investor

2021 Apr.

Repayment of ILP loan

Market

Why Estonia?

Over the past years, Estonia has become a hotspot for technological innovation, including a very active start-up culture. With a vibrant tech sector and a growing interest in the country’s e-Residency program, investors and entrepreneurs are flocking to this European country to pursue business activities and expansion. By encouraging innovation, a country with a population of just 1.3 million has seen uber success, coming in the form of unicorn startups such as Skype, which was sold for $ 8.5B to Microsoft and TransferWise, Taxify (Bolt), and PlayTech, all of which recently achieved $1B+ valuations, among others.

The same growth can also be seen in both the real estate market and blockchain industry. According to ICOBench, Estonia holds a top 5 position for number of blockchain startups launched in a given country, with 268 launches. At #5, Estonia heads the list alongside top economic powers, including the USA, UK, Singapore & Russia. The real-estate market has also shown growth, with flexible rules for lease agreements as well as very low costs for property tax (as low as 0.1% of market value). A recent trend shows the popularity of the industrial property market is growing, particularly with the ongoing development of several industrial parks similar to Betooni Industrial Park.

The Stock Office Market

The e-commerce market has changed the way we do business. Since the late 90s, companies like Amazon have been looking for more affordable rent, away from brick and mortar sales offices located in residential areas. Instead, businesses opt-in for effective and flexible office solutions which they can combine with a strong e-commerce sales strategy.

The stock office market in Estonia has shown incredible growth over the past years. In a recent interview, 1Partner Commercial Real Estate Manager Kirill Vigul indicates that the rental prices of these versatile workspaces have doubled over the past 3 years due to high demand. According to Ober Haus Real Estate, the largest real estate broker in Estonia, the vacancy rate of similar stock offices was approximately only 5% by the end of 2017, despite rising prices. Rent for these spaces in the same time period varied between €5.5 and €11.0 / m2. During this time, we have seen a move away from traditional remote industrial lots to conveniently-located industrial parks, made up of groups of startups, small and medium-sized businesses.

Betooni Industrial Park -
Betooni Tööstuspark

The boom of interest in multifunctional buildings began in 2015. Business professionals and entrepreneurs have become aware of the benefits of multifunctional spaces. Betooni Industrial Park is collection of such facilities, which offer a combination of warehousing, office space, a showroom and production space, all in a convenient location. The Park has been energized by a community of businesses and workers from the nearby residential area and is just a 10-minute drive from the airport and the Tallinn city center. It is located in the central part of Lasnamäe district, with great access to public transport and the Muuga sea port, one of the largest ports in Estonia.

Risk Analysis

As we analyzed the market, we also took potential risks into consideration, ensuring that we pay close attention to and optimize our risk management strategy. While some risks are out of our control, we have taken these into account and formulated strategies for appropriate mitigation. Here is a summary for your reference.

Property market risk - The ability to offer small-sized multi-functional premises mitigates the risk of an inactive property market. Currently, there is limited supply in this segment. In our calculations, we have used a very conservative rental rate per m2; 20% lower than the market rates.

Economic risk - The economic forecast by Bank of Estonia reported a 3.9% annual GDP growth in 2018. The growth is expected to decelerate to 3.5% in 2019, but the general outlook remains healthy. Slower growth might result in pressure on rental rates in the form of increased vacancies, but the effect is likely to be limited. The budget foresees adequate buffers and the project can sustain up to 30% decrease in net operating income.

Tenant risk - All lease agreements are on triple net basis (where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance) and secured with a 3-6 month bank guarantee or cash deposit, depending on the duration of the agreement. Immediate action will be taken in case of 30 days delay and rental agreements will be terminated if necessary. In such a case, the deposit will cover the overdue rental payments as well as vacancy loss.

Development risk - The land plot is approved by the Estonian land authority as production land and we will use up to 80% of the allowed construction limit, thus we do not expect any delays or issues with receiving a construction permit. In addition to that, all utilities (water, sewage, etc) exist near the border of the land plot, which also allows for quick and smooth launch of the development. No geological or environmental restrictions apply to the plot. All estimates regarding the development cost are based on actual valid offers. Respective agreements have been drafted and are due to be signed as soon as financing has been secured.

Real Estate market risk - If the world economy should turn to a decline, institutional real estate buyers may be discouraged and the developer cannot immediately exit the project. With Project B11G, we have taken this into account and we are ready to maintain and operate the project for up to 2 years in order to achieve the minimum required 8% capitalization rates on exit.

Cryptocurrency Market Risk - A diversified portfolio includes different asset classes and an investment in real estate provides an opportunity to mitigate the risk of a volatile cryptocurrency market. To protect the investor, the value of the underlying loan agreements is established in EUR. 100% of the investments received in ETH will be immediately exchanged to EUR to protect the project against fluctuations in the market. Lastly, we will utilize the EURS stable coin to pay back the principal and interest to our creditors. EURS is coin which has been specifically designed as a counter-measure to cryptocurrency fluctuations.

We develop:
Real Estate

The most valuable asset
in real estate is a happy tenant!

Throughout our decades of experience, we have achieved quite a lot and developed many profitable projects. Our experience working with the industrial sector particularly has given us invaluable insights as to what works and what doesn’t for a wide-range of processes within the supply chain. Despite our success, we always strive to improve our understanding of the clients’ needs. So we listened and we noticed that our clients have great ideas when it comes to building plans, section sizes, contract length, and lease prices.

Therefore, we decided to take their feedback and launch an industrial start-up project where we can fulfill all their desires; versatility, top-notch design, excellent location, flexible contracts and affordable rent. We look forward to building long-lasting relationships with happy customers. Our client-focused approach has already proven to be successful, with over 30% of the B11G premises already reserved by tenants.

We have:
Real Experience

What have we been up to lately?

With over 25 years and 20,000 m2 of real-estate development experience, this will be the 11th project carried out by the professionals at Future Invest OÜ and its partners. All of our projects have resulted in satisfied customers and have achieved a minimum of 30% ROI at exit. Check out some of our past projects and what we’re planning on doing in the future below.

2007

Rave Furniture

Rave has been producing furniture since 1992. In 2007, our collaboration resulted in a 1,962 m2 production facility, where sofas, beds and armchairs are manufactured, before being sold all throughout Finland, Norway, Sweden and Estonia.

2007

Toyota Material Handling

The Japanese car manufacturing giant came to us for help with a space for their material handling division. We built a facility for their supply of smart industrial trucks, forklifts and warehouse equipment.

2008

Amber Beverage

Established in 1900, Amber Beverage trusted us with its reputation and we delivered. Working with a 4,500 m2 plot of land, we built them a distribution center, which serve 180 brands of beverages to over 1,500 outlets throughout Estonia, including a 24-hour delivery policy.

2011

Robert Bosch

Founded in 1886, the multinational engineering and electronics company came to Estonia with a goal to support its line of thermotechnology, power tools, security systems and automotive aftermarket products. The 2,200 m2 facility we built them does just that.

2011

SRC Group

SRC started out as a small ship-repair company in 2001. Their growth brought them to us as they expanded into ship-building, machine building and steele construction manufacturing. In 2018, they returned for a 2nd project.

2014

AIM Productions

We built two facilities for AIM, totalling over 6,000 m2 of industrial manufacturing greatness. In 2015, AIM came back to continue its growth with us in the aluminium and stainless steel industry, producing for the energy, transport and food industries, among others.

2015

Teknos

The finnish family-owned business is an expert on technically advanced paint and coating solutions, which employs 1,600 people globally. The 1,925 m2 facility we built with them netted us a 34% ROI and another happy customer.

2015

AIM Productions

We were happy to work on the second project with AIM Productions and at the exit stage. The facility we constructed for them was a huge success and had a market value of over 3.2m EUR, generating great profits for our investors.

2018

SRC Group

SRC Group was our next returning customer, returning for an additional project after 7 years. This project gave us further confidence in our winning formula.

2018

Ladu 32

Ladu 32 was our first experience dealing with multifunctional industrial units geared towards multiple clients, as opposed to a custom-built solution for a single client. Composed of many smaller-sized units to be used by small and medium-sized businesses, the 3,335 m2 facility gave birth to our new business model for industrial warehousing and production facilities.

2019

Betooni 11G (B11G)

This is the industrial stock office project on which we are currently working. We are confident that we will raise enough money to execute this project, establishing a 4,126 m2 facility, with a projected market value of approximately 4.1m EUR.

2020

Upcoming Hostel Project

In 2020, we are planning to build a 2,800 m2 hostel in the centre of Tallinn. Estonian tourism is at an all-time high and the growth of e-Residency has marked Estonia as a digital hotspot and top destination for economic tourism, especially for startups and entrepreneurs.

2021

Upcoming Logistics Truck Parking Project

With a land plot of 21,523 m2, this will be physically one of the biggest projects on which we have worked. With the growth of ecommerce and the ever-increasing globalization of the world’s economy, the demand for logistics infrastructure is only increasing, and we look forward to contribute to and capitalize on this phenomenon.

We offer:
Real Returns

A 14% annual interest rate,
with a loan period of 24 months

By issuing the B11G token, we will carry out the first European real estate project financed with digitized loan contracts, made internationally accessible through blockchain. Through our previously established relationships with real estate funds, we have understood that the finished product, an industrial facility with active tenants, will be sought out by buyers, netting us and our creditors a great return. Thanks to the reputation we’ve earned through hard work and hard-hats, 10 of the available 38 leasable units have already been reserved by tenants (as of 25.03.2019). The B11G token and its underlying smart contract also allows our creditors to transfer a loan contracts by trading them, should the opportunity, desire or need arise. Altogether, this means that with the B11G token, you turn smart contracts into smart money!
Calculate your return on investment below:

If you lend
EUR,
You will get back0EUR.*

* This calculation is for reference and should not be considered as investment advice or solicitation to lend funds to B11G OÜ. The calculation is showing an estimated return principal amount of the loan and interests earned on this amount, assuming 24 month loan period and 14% annual interest rate, before any applicable taxes subject to each investor local tax rules.

Financial Overview

As a creditor, you will receive your first interest payment 6 months after receipt of the loan (October 2019). The 2nd interest payment will be made at the end of the 24-month term, along with the repayment of the principal (April 2021). To protect you against the fluctuations of the crypto market, you will be paid out in EURS stable coin.

The loan will be repaid from proceeds of sale of the property to an institutional real estate investor. Our experience and established network leaves us confident in the eventual sale of the property to one of our professional real estate fund partners. Over the past decade, we have achieved this in an average period of 16 months, in some cases 3 months after the construction has been finished and cash flows from rents secured. In case we are to achieve this earlier, we look forward to repaying the principal and interest payments early.

Project B11G uses ILP Technology

A new loan agreement structure

Designed by our partners at blockhive & secured by our partners at Agrello, the Initial Loan Procurement (ILP) model is a revolutionary blockchain-based fundraising mechanism. It allows us to raise funds via debt financing, with blockchain technology acting as immutable proof of all loan transactions. In other words, thanks to tokenization, we are able to procure a loan from a global market of investors. To learn more about ILP, visit tokenote.io

LEND
REPAYMENT

Loan Agreement

As a creditor, you will utilize the ILP platform to create a digital ID to electronically sign a human-readable contract, which outlines the details of our loan agreement. While smart contracts are involved, the human-readable loan agreement provides our creditors with legally-binding, clear, comprehensive and presentable terms, which can be understood by any lawyer. To preview the loan contract written up by our lawyers for the B11G ILP, click here.

B11G Token (FLAT)

The B11G token provides authenticated holders with access to a loan contract and its associated benefits. It can be utilized to facilitate the trade of a loan, where 1 B11G token provides access to 1 EUR worth of loan value. By issuing this token, we give you the power to trade a portion or the entirety of your loan agreement on the secondary market, through either private trades or on decentralized exchanges. The ERC-20 standard token is the most common token in the industry, which makes it easy to trade. It has also been designed to be listed on any decentralized cryptocurrency exchange with relative ease.

Token Name B11G
Token Value 1 B11G = €1
Token Utility Use B11G to enter into & transfer loan agreements
Token Protocol ERC20 (Ethereum)
Total # of tokens issuable 1,500,000 B11G*
Total # of tokens issued 1,100,000 B11G
Fundraiser Format Initial Loan Procurement (ILP)
Fundraiser Starts April 1, 2019, 10:00:00 (GMT + 3)
Fundraiser Ends April 30, 2019, 23:59:59 (GMT + 3)
Minimum Investment Amount 2 ETH

*While we are aiming to raise 1.1M EUR, our smart contract allows us to accommodate additional investment should there be a high demand. We can issue up to 1.5M tokens at a nominal value of €1 each.

How to participate

Let’s start to join B11G

Your participation in Project B11G is made possible by the capabilities of our project partners. Our self-confidence in our real estate expertise is matched by the expertise of our blockchain partners, and we are happy to provide a safe and smooth creditor participation model in the form of the ILP (Initial Loan Procurement). In order to ensure privacy and security, we have reached agreements with our blockchain partners blockhive for creditor onboarding, Agrello ID for digital ID verification and CoinMetro for AML/ KYC processing. Below, please find the step-by-step instructions for investing in the B11G ILP:

1

Create
Digital ID

2

Register
ETH Address

3

Submit
KYC/AML Info

4

Await
Approval

5

Sign
loan contract

6

Lend
ETH

Agrello ID tokenote B11G ILP CoinMetro
Create your digital ID

Create your digital ID

We use Agrello ID to manage your account. Agrello is a smart agreements software company, which utilizes blockchain to provide secure solutions for identifying yourself and signing documents. If you already have an Agrello ID, please skip this step. If not, please download the Agrello ID app ( Android | iOS ) and follow the instructions to create your ID.

The account setup process should take no longer than 5 minutes and your ID can be verified as quickly as 15 minutes after registration. Please note that during high volume periods of requests, Agrello ID can also take up to 24 hours to be verified. If you have any concerns regarding this matter, please feel free to reach out to our customer support agents, available on this website 24/7.

Once your account is created, please proceed to the B11G ILP registration page.

Register your ETH address and estimate loan amount

Register your ETH address and estimate loan amount

Once you've created your account and logged in to the B11G ILP Platform, register your Ethereum address. Please note that we will only send B11G tokens and EURS interest payments to this address. Kindly also be advised that once you have passed AML/KYC, you will not be able to change this address.

Once you have registered your Ethereum address, enter the amount you plan to lend. Kindly note that the AML/KYC process for investments greater than 15,000 EUR requires a submission of documents detailing your source of funds.

Submit your KYC/AML Information with CoinMetro

Submit your KYC/AML Information with CoinMetro

After you complete step 2, you will be prompted with a message asking you to submit your AML/KYC information. Once you click on the message, you will be taken to the CoinMetro website. In case you would like to complete this step at a later time, you can also click the CoinMetro button on the B11G ILP dashboard. To ensure a speedy process, make sure to click “Use Agrello ID Data” on CoinMetro’s website.

Await approval from CoinMetro

Await approval from CoinMetro

Approval can take between 15 min- 24 hours, depending on the investment amount and documents submitted. You can change the amount you wish to invest at anytime in the “Account Settings” section. Once you have been approved, your B11G ILP profile will show a green checkmark beside the KYC/AML section.

Sign your loan contract

Sign your loan contract

On the B11G ILP page, click “Sign Loan Contract”, for which you will need to have your Agrello ID handy. Please read through the contract to ensure that you understand the terms to which you are agreeing before signing.

Residents of the countries and territories that are under appropriate international measures are not eligible to invest in this project. Such countries are Algeria, Bolivia, Burma/Myanmar, Democratic Republic of the Congo, Crimean Peninsula, Cuba, Ecuador, Eritrea, Iran, Iraq, Libya, Morocco, Namibia, North Korea, Pakistan, Somalia, South Sudan, Sudan, Syria, United States, Venezuela & Yemen.

In addition, residents of countries where B11G Project or ILP are prohibited or restricted with license requirements or similar pre-conditions that the B11G Project does not fulfill (i.e. Unites States of America) should refrain from participating in the B11G Project through this website or by acquiring B11G tokens from the secondary market.

Lend ETH

Lend ETH

Almost done! You are now ready to participate. On the B11G ILP platform's "Sign loan contract" screen, you will be prompted to "Enter Investment Amount". Please enter the ETH amount you wish to lend.

After entering the amount you wish to lend, please choose the way you would like to send your ETH to the B11G ETH account (we recommend using Metamask). Please double-check to make sure you are using the ETH address you registered with in Step 2 to send your ETH. Your B11G tokens will be automatically issued to this address. Congratulations!

About Us

Company

We are Future Invest OÜ, an Estonian investment holding company, which has been involved in the real estate and wood processing business for over 10 years.

Together with our partner Ehitusagentuur OÜ, a leading Estonian real estate engineering and technical supervision company, we have established New Page OÜ, which will become our new flagship investment holding for real estate development projects with stable cash flows generated through the rent of premises. We have compiled a designated team under New Page OÜ, which will work on the projects such as B11G. Our team has decades of experience dealing with various aspects of real estate and we’ve contributed to property developments totalling 19,500 m2+, delivering positive returns in each project.

B11G OÜ is a fully-owned subsidiary of New Page OÜ and has been created in 2018 as the SPV for development of this project.

Members

Janar Asor

Partner, CEO

Janar Asor is a seasoned entrepreneur, developing housing and commercial real estate in Estonia since 2010. Aside from his work in Estonia, Janar brings international business experience, conducting projects throughout Finland and Russia. In recent years, Janar has become a big supporter of blockchain and cryptocurrency, with a focus on use-cases relevant to the real estate industry.

Jüri Kulli

Partner, CTO

Jüri graduated from Tallinn Technical University in 1997, joined Ober Haus Real Estate in 1998 and has been engaged in the management and supervision of construction projects since then. Between 2006-2010, he led the development of the Jüri Industrial Park, where he developed more than 20,000 m2 of warehouse and production facilities. Since then, he has been a partner and consultant with many projects, serving clients in Estonia and Malta.

Helen Roospõld

CFO

Helen graduated from the Academy of Law, University of Tallinn in 2004. Since then, she has acquired a wealth of knowledge of banking law as lawyer for Swedish bank SEB. Over the last decade, Helen has also become an expert in real estate law, working for one of the leading notary offices in Estonia.

Margus Haud

Marketing & Sales

Margus started his real estate career in 1993, at the Bank of Tallinn and continued at Ober Haus Real Estate until 2001. Since then, Margus has worked with logistics and production real estate developments, specializing in technology parks. He supervised the Jüri Industrial park, planning, building and designing 37 separate construction plots, operating in a 52 ha zone. Margus also has expertise in the rent, sales, and cash flow management of real estate properties.

Jaanus Mesak

General Contractor

Jaanus Mesak is the managing director of Messiehitus, a construction works contractor, established in 1996. He and a team of 40 experienced construction workers will serve as the general contractor to build Project B11G.

Advisors

Hikaru Kusaka

Since 2013, Hikaru has provided strategic advice to both the public and private sector as an expert on blockchain technologies. He founded Estonia-based blockhive and is the chief strategist behind Tokenote, the ILP platform used for our fundraiser for Project B11G. Hikaru is also an advisor of the Review Committee of the Estonian government.

Paul Oberschneider

Paul is the Founder and CEO of Hilltop Credit Partners and property entrepreneur. He is an investment professional with a 30-year track record in property development, asset management and financial structuring, transacting over £1 billion in the UK and Continental European real estate markets.

Risto Vahimets

Risto is a lawyer and M&A Partner at ELLEXRaidla. His deals range a variety of sectors, including energy, logistics, electronics, agriculture, real estate, and more. Risto served as the lead Estonian counsel for one of the largest deals in Baltic history; 2.6 bn EUR Hansabank/Swedbank takeover.

Partners

blockhive

blockhive

Blockchain development partner

Agrello

Agrello

Digital ID service provider

CoinMetro

CoinMetro

KYC/AML partner

Oblicity

Oblicity

Legal Partner

Ehitus Agentuur

Future Invest

Managing Partner

Ehitus Agentuur

Ehitusagentuur

Managing Partner

Ehitus Agentuur

Messiehitus

General Contractor

LAAM

LAAM

Sales Agent

Downloads

Please check out our detailed project information, policies including our road map, terms and conditions and market analysis.

Contact us

We would love to hear from you. Please join us on Telegram. Otherwise, use the form below to submit your query. Thank you!

Coming Soon

Our fundraiser will begin on April 2nd. To participate, please check back in then! Until then, please join the discussion in our Telegram group: t.me/projectb11g.