MAG Partners with MANTRA to Tokenize $500 Million in Assets, Setting a UAE Milestone in Real Estate

Real Estate

MAG Partners with MANTRA to Tokenize $500 Million in Assets, Setting a UAE Milestone in Real Estate

In a groundbreaking development for the global tokenized real-world asset (RWA) sector, MAG, a premier real estate developer in the UAE, has announced a strategic partnership with MANTRA, the institutional-grade Layer 1 blockchain platform. This collaboration will see the tokenization of $500 million worth of MAG’s real estate portfolio, marking a significant milestone in the UAE's real estate market.

MAG, with a total real estate portfolio valued at over $5 billion, is set to revolutionize real estate investment through blockchain technology. The initial focus will be on the Keturah projects—Keturah Reserve in Meydan, Dubai, and Keturah Resort at Dubai Creekside. The partnership will introduce a real estate financing vault on MANTRA’s compliance-ready Layer 1 blockchain, offering investors a unique opportunity to earn attractive yields from an alternate asset class, secured by blockchain technology.

Structured in multiple tranches, the aggregate transaction value of the tokenized projects will amount to $500 million. This strategic move positions MANTRA and MAG as pioneers in the tokenized real estate market in the Middle East.

Investors in the vault will receive yields in stablecoins and $OM tokens, with an expected return of approximately 8% APY from stablecoins. This yield will be further enhanced with $OM tokens. The initial vault will be over-collateralized by a $75 million mega mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development, part of the Keturah Resort, and will be backed by MAG’s corporate credit, ensuring robust investor protection while driving innovation in real estate investment through tokenization.

Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, commented, “Working with MANTRA allows us to leverage cutting-edge blockchain technology to enhance the value and accessibility of our real estate offerings. This strategic collaboration is pivotal and forward-facing as we continue to innovate and lead in luxury real estate development.”

John Patrick Mullin, CEO and Founder of MANTRA, stated, “Partnering with MAG represents a major milestone in our mission to bridge blockchain with tangible assets, with a special focus on the Middle East. This venture will set new standards in real estate tokenization, offering global investors access to premium real estate assets in the UAE.”