A research submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Construction, Engineering and Infrastructure Management, School of Engineering and Technology

Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 2022

The commercial real estate owner required high capital to develop the project for growth of the company. The tokenizing of commercial real estate has provided the opportunity to acquiring fund by offering the investment of ownership to the investors through token. This research mainly aims to explore and develop the model and provide strategy for owner to apply to tokenize asset for funding. To be able to complete the objective, the qualitative research was conducted with inductive approach to explore and develop the model from semi-structured interviews with 4 different functions of experts from CEO from owner company, administrative officer from regulator, Vice president from consultant and investor. The model of tokenizing commercial real estate was developed with the main idea of the process by securitized of commercial real estate to token to represent the ownership of the project and sell to interested investors through primary market. The function of tokenizing asset for funding allows the owner to get easier access of funding with lower cost and lower time to issue the project comparing to the traditional. However, there are higher risks from the market and technical factors. The study found that the preparation of owner to provide project structure, stakeholders to be ready to apply tokenization as a funding tool as well as engaging to increase the value of project with the application of tokenization are the main keys to develop the success fund raising with tokenization. One conclusion from this study is the tokenization of commercial real estate is capable to be a financing tool by using the token as a medium to connect the issuer and investor by carrying the function of smart contract which resulted to lower the constraint to get funding in both time and cost to set up and increase the access to get funding and it may offer the different structure, function, value, and opportunities to commercial real estate project. The study needs to be explored deeper into the standardize the finance and regulation aspect of tokenization along with the possible implementation of tokenizing the asset as a funding tool to various business fields.