Announced on May 12, the PREH Multifamily Fund focuses on vintage Class A multifamily properties in the top 20 fastest-growing markets across the United States. The fund is entirely digital-native, with compliant onboarding, reporting, capital calls, and potential secondary market transfers all managed via blockchain.

Part of a $750M Institutional Vehicle

The tokenized fund is part of a broader $750 million investment vehicle jointly developed by PREH and major institutional partners including Carlyle, DRA Advisors, Walton Street Capital, RPM, and KKR. Initially, $25 million of the fund will be tokenized on Chintai.

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PREH believes the tokenized structure addresses long-standing challenges in the private real estate market, such as low transparency and limited liquidity.

“Blockchain Offers Top-Tier Compliance and Efficiency”

PREH President Tejas Patel explained the choice of Chintai:

“We chose Chintai for their fully regulated, institutional-grade platform specifically designed for real-world asset tokenization. It enables us to uphold investor protection and compliance while gaining efficiency and access through blockchain.”

Founded in 2010, PREH has executed over $500 million in real estate transactions and manages a national portfolio of high-end multifamily properties.

Chintai, a tokenization-centric layer-1 blockchain, also powers ESG-focused initiatives like the R3 Sustainability Fund. Its native token, CHEX, trades at $0.24 with a market cap of $244 million, per CoinMarketCap.

Tokenization Gains Global Momentum

Real estate tokenization is accelerating globally, with adoption growing in North America, the UAE, and parts of Europe, where new regulatory frameworks are being developed.

One of the main drivers is its ability to eliminate the illiquidity discount that plagues traditional property investments.

Consulting firm Deloitte projects that $4 trillion in global real estate assets will be tokenized between 2030 and 2035, highlighting the scale of the shift underway.

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In the tokenization process, real-world assets (RWA) are divided into digital representatives on the blockchain. These small shares allow investors to own properties without encountering high entry barriers. This mechanism provides an important solution to the low liquidity of real estate in the classical model.

Working from Home, Digitalization and Tokenization

Remote working models that have become permanent after the COVID-19 pandemic, climate change risks and technological advances have redefined the way real estate assets are used. Now office buildings are turning into artificial intelligence data centers, logistics hubs or energy efficient living spaces.

This change is increasing investors’ desire to invest not only in traditional property types but also in transformed, modern-purpose assets. This is where tokenization comes into play, offering investors flexible, customizable and programmable investment strategies.

For example, by tokenizing a real estate asset, investors can only invest in the energy-efficient part of a logistics center. Thus, the blockchain-based “fractional investment” model opens the way for micro-level strategic investments.

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Regulatory Approaches to Tokenization

The future of tokenization is not only dependent on technological developments; the maturation of the regulatory framework is also critical. Plume Network founder Chris Yin states that increasing RWA (real-world asset) adoption could encourage global regulators to produce more inclusive and innovation-friendly policies.
Yin likens the tokenization process to the aggressive growth process Uber experienced before it was regulated: “As demand increases, regulatory clarity will inevitably come.”

On the other hand, some industry leaders are cautious about whether tokenization will directly create efficiency in the real estate field. According to Securitize COO Michael Sonnenshein, the role of intermediaries and escrow services in the real estate sector could be reduced thanks to blockchain technology. But today, what the market demands are more liquid, digital assets that can be exchanged quickly.

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