BlocHome Case Study
BlocHome: Clapton Residence, Luxembourg
How A Luxembourg operator raised €1.7M from 250 investors for a fully occupied residential building using €50/month subscription plans and a regulator-accepted secondary market.
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Deal Snapshot
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The Problem
1
Capital thresholds lock out qualified buyers
In Luxembourg, a typical down payment exceeds €100,000, forcing professionals with stable incomes to remain renters while missing out on the appreciation of the properties they inhabit.
2
The acquisition process is slow and opaque
Traditional property purchases take months from loan application to notarization, with fragmented information about maintenance, tenants, and management decisions along the way.
3
Real estate is a liquidity trap
Owners who need capital face months-long sales processes, significant discounts, and transaction fees (notaries, agents, taxes) that erode returns for anyone holding less than five years.
4
Passive exposure options lack direct equity connection
Traditional REITs and funds offer market exposure but not the granular, asset-level equity link and flexibility that allows an investor to see exactly which building their capital supports.
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The Thesis
The operators behind BlocHome observed that young professionals in Luxembourg, even those with stable incomes, were priced out of property ownership entirely. Their thesis: if you convert a fully occupied residential building into fractionalized digital shares through a compliant securitization vehicle, you can offer direct property equity starting at €50/month while automating the administrative burden that makes small-ticket real estate investment uneconomical.
"Tokenization is not a gadget; you need to have a business plan that uses the full capacity of tokenization to democratize access, to achieve low-cost, high-security, and peer-to-peer transactions. We want to ultimately redefine housing as a service."—Jean-Paul Scheuren, Co-Founder of BlocHome and President of the Real Estate Board of Luxembourg
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The Structure
Legal Wrapper
A Luxembourg Securitization Vehicle (SV) holds the property. Investors own Class B digital shares in the SV, not the physical asset directly. This converts real estate into a financial security governed by Luxembourg's Securitization Law under CSSF oversight.
Token Mechanics
ERC-3643 permissioned tokens on Polygon. Only KYC/AML-verified investors can hold tokens. The platform issues tokens for 90% of the property's appraised value, creating an inherent equity buffer from issuance.
Compliance Automation
ONCHAINID (decentralized identity framework) enforces eligibility at the smart contract level. Secondary transfers are automatically checked against compliance rules before settlement. Token recovery is possible through the identity-linked architecture if a wallet is lost.
Secondary Market
The "Billboard" is a P2P matching engine accepted by the CSSF. Sellers list tokens to other whitelisted community members. Settlement is instant on-chain once both parties pass automated compliance checks.
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The Numbers
€8M
Building Valuation
Total building valuation (Clapton Residence)
€1.7M
Capital Raised
Raised from initial investor cohort
250→350+
Investor Growth
Investor growth from first building to second acquisition
€50/mo
Minimum Subscription
Start BlocPlan tier
90%
Cost Reduction
Reported reduction in compliance and administrative costs vs. traditional management
100%
Occupancy
Occupancy at time of community acquisition (income-producing from day one)
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TRB Insight
Most people see this as fractional real estate investing. It is actually a repositioning of housing as a service.
BlocHome decouples where you live from where you build equity. An investor accumulates ownership in a portfolio of occupied buildings regardless of their own residence. If they eventually choose to live in a BlocHome property, their rent is offset by their ownership stake: the more tokens held, the lower the net rent paid to the community. This reframes the traditional binary of "renting vs. owning" into a flexible model where equity accumulation and housing decisions operate independently.
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The Flywheel
Community Capital Pools → New Building Acquisitions
Monthly subscriptions from 350+ investors create recurring capital that funds acquisitions of income-producing properties (Clapton → Flora). Each new building is acquired only when community capital reaches the threshold, and the community votes on the purchase.
Portfolio Growth → Per-Unit Cost Reduction
Managing more buildings through a single digital platform reduces per-unit administrative and compliance costs further. The 90% issuance policy means each new acquisition adds unrealized equity to the aggregate token value, projected at 4-5% annual appreciation from the issuance mechanism alone.
Liquidity Depth → Lower Perceived Risk
A larger community creates a more active Billboard secondary market. As more verified buyers and sellers participate, exit flexibility improves, which in turn lowers the perceived risk for new investors and accelerates further community growth.
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Takeaway
This model fits if:
- You operate in a jurisdiction with securitization law that permits digital share issuance (Luxembourg is the tested pathway; similar frameworks exist in parts of the EU under MiCA evolution).
- You are acquiring stabilized, income-producing residential assets where the "J-curve" risk of development is eliminated and investors see immediate rental yield.
- Your target investor base is retail or mass-affluent professionals who are currently priced out of direct property ownership but have stable monthly income to commit.
- You want to build a recurring capital pool through subscription-based investment rather than raising a single fund with a fixed close.
This probably does not fit if:
- You are financing development-phase or value-add projects where construction risk and timeline uncertainty make the subscription model impractical.
- Your investor base requires deep, exchange-traded liquidity rather than a community-based P2P matching market.
- Your target jurisdiction lacks a clear legal framework for securitization vehicles holding tokenized real estate.
Limitation to note: The Billboard secondary market depends on community size and activity. This is not exchange-traded liquidity. Exit timing and pricing depend on the number of active, whitelisted participants on the platform at any given time.
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