Silver Portal Capital to Launch Blockchain-Enabled Trading Platform for Illiquid Real Estate Securities

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Silver Portal Capital will deploy the Fundamental Interactions technology platform to pioneer new primary and secondary trading markets in illiquid real estate securities, leveraging the blockchain and utilizing the FINRA-regulated DBOT ATS (Delaware Board of Trade) for order matching and regulatory trade reporting.

Silver Portal Markets brings new viability to previously constrained aftermarkets by creating additional liquidity and ease of access for best-in-class real estate sponsors and issuers

San Diego-based real estate investment and merchant bank, Silver Portal Capital LLC, has partnered with New York electronic trading and technology provider, Fundamental Interactions Inc., to launch Silver Portal Markets (http://www.silverportalmarkets.com): a web accessible marketplace that will provide both real-time secondary trading and direct issuance funding for select real estate securities. The market will support public and private real estate securities, including: Non-Traded REITs, Delaware Statutory Trusts and Limited Partnership interests in strategic Joint Ventures. “Silver Portal Markets brings new viability to previously constrained aftermarkets by creating additional liquidity and ease of access for best-in-class real estate sponsors and issuers,” concludes Jon K. Haahr, Founder, and Jean-Louis Guinchard, Senior Managing Principal, of Silver Portal Capital. “We’re very excited to bring this new opportunity to the market.”

The secondary market will reshape the historically dislocated network of real estate sponsors, inter-dealer brokers, and registered investment advisers into a dynamic and competitive trading marketplace. A simple web interface provides access to a sophisticated multi-dealer electronic trading infrastructure where customer orders are matched on a central limit order book operated by the DBOT ATS, a subsidiary of the Delaware Board of Trade.

The automated primary issuance platform within Silver Portal Markets will allow select real estate sponsors and investment banks to directly syndicate equity out to investors, principally through 506(b) and 506(c) offerings. This will enable sponsors to raise capital more efficiently and cost effectively, and ultimately create liquidity for new issuers on the platform.

The marketplace utilizes Ethereum smart contracts to provide real-time reconciliation and settlement of trades among inter-dealer counter parties, providing analysis of moment-to-moment net settlement exposures on a peer-to-peer basis. In the case of the primary market, new equity issues are written into smart contracts on a distributed ledger as a basis for shareholder services and tracking beneficial ownership. “We are pleased to support the addition of these new products to the market center, especially here in Delaware, which has already legally embraced the blockchain for equities issuance and settlement,” says Jose A. Guadalupe, DBOT Board Member and representative of S.S. Lootah Group. James Slazas, Director of ConsenSys Capital, also adds, “ConsenSys is excited to support the innovative marketplace in its use of smart contracts for trusted settlement and greater transparency.”

About Silver Portal Capital: Silver Portal Capital, a registered broker-dealer, is one of the nation’s premier real estate investment/merchant banking and advisory boutiques, providing a full complement of strategic/financial advice and capital raising services for high-quality private platform operators as well as public and non-traded REITs. Silver Portal also sponsors targeted real estate discretionary funds in demographically-driven property types, and provides tax-advantaged, 1031 Exchange investment opportunities in beneficial interests of Delaware Statutory Trusts (DSTs) or whole ownership. The principals of Silver Portal have advised on and raised more than $20 billion of capital in over 150 transactions, exclusively in the real estate sector.

About Fundamental Interactions: Rising to challenges and opportunities posed by regulation, technology, and market structure shifts – Fundamental Interactions develops leading enterprise market center technology platforms. The system is widely deployed by securities exchanges, ATS systems, and inter-dealer brokers across a variety of asset classes and geographic regions.

About Delaware Board of Trade Holdings: Delaware Board of Trade Holdings Inc. operates three companies: (i) DBOT ATS LLC, their SEC recognized Alternative Trading System; (ii) DBOT Issuer Services LLC, focused on setting and maintaining issuer standards, as well as the provision of issuer services to DBOT designated issuers; and (iii) DBOT Technology Services LLC, focused on the provision of market data and marketplace connectivity.

About DBOT ATS: DBOT is a FINRA Member Firm, and a member of the Securities Investor Protection Corporation (“SIPC”), that operates a fully automated, auto-execution Alternative Trading System (“ATS”).

About S.S. Lootah Group: Established in Dubai in 1956, S.S. Lootah Group is a family-owned diversified business house with ventures across key industries from Construction, Real Estate, Energy, Food and Hospitality to Financial Services, Applied Research, ICT, Education and Healthcare among others along with a remarkable portfolio of not-for-profit educational institutions. From the first contracting company and first medical College in the United Arab Emirates to the first Islamic bank in the world, the entrepreneurial spirit of S.S. Lootah Group has been the catalyst that has brought home-grown business and community ventures to the global stage. This extraordinary portfolio carries the hallmark of the visionary Haj Saeed Bin Ahmed Al Lootah, the founder and Chairman of S.S. Lootah Group.

About ConsenSys: ConsenSys is a venture production studio building decentralized applications and various developer and end-user tools for blockchain ecosystems, primarily focused on Ethereum.

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