Michelle Mone and Douglas Barrowman are selling luxury apartments in Dubai for bitcoin. The Knox Group is the first major developer to accept bitcoin as payment for property. Mone, best known for bui
Michelle Mone and Douglas Barrowman are selling luxury apartments in Dubai for bitcoin.
The Knox Group is the first major developer to accept bitcoin as payment for property. Mone, best known for building Ultimo into a lingerie brand before selling her stake in 2015, and Barrowman, an investor who worked for private equity firm 3i in the late 1980s, are partnering for the first time on this £250 million venture.
Barrowman has tracked cryptocurrency markets for two years. "I've been interested and invested in the sector for 2 years and I've also followed the blockchain story for a number of years, so have been a believer for a long time now so this isn't something that I've just come across in the last couple of months," he told MiningPool. "For me this was a logical extension of technology that I think will become mainstream in the next 3-5 years."
The apartments appeal to people who've accumulated bitcoin and want exposure to conventional property. "We are enabling people who've made very good gains on bitcoin and other cryptocurrencies the opportunity to diversify back into mainstream investments such as bricks and mortar, rather than backing the next ICO or keeping it all in cryptocurrency," Barrowman said. Investors who lease the units can expect 8% rental yields.
Studio apartments start at $133,000 (29.9 bitcoin at press time), with two-bedroom units at $379,000 (85.2 bitcoin at press time). The company is offering a 15-20% discount from market rates. "We understand that the community likes to be rewarded for early adoption so we are giving investors the opportunity to buy an apartment with bitcoin for 15-20% below the current asking price," Mone said.
John R Harris & Partners designed the towers, with Michelle Mone's design firm handling interiors. The development features floor-to-ceiling windows, three retail floors for restaurants and shops, an outdoor cinema, pool complex, and wellness center. The project opens in 2019.
Mone described what sets the apartments apart. "Traditionally with developments in Dubai, you don't get a kitchen or a bathroom. Ours include a beautiful kitchen and a beautiful bathroom. And if you want it completely interior designed, Michelle Mone interiors will also accept bitcoin."
Barrowman separated bitcoin payment processing from traditional legal safeguards. "Bitpay will provide the processing of Bitcoin to Fiat currency which we need to pay suppliers, but the backend legal conveyancing will still be standard and transparent, so the community knows that the backend is a streamlined, legal process with everything registered properly," he explained.
He ruled out holding bitcoin reserves. Price volatility posed too much risk. "We are not currency speculators, we are here to build the towers, ensuring every penny is converted to fiat currency. Come November, with Segwit 2X the price may drop before it rebuilds again, so it would be risky for us to speculate when we are in the business of property development."
Stephen Pair, CEO of payment processor BitPay, endorsed the arrangement. "These property purchases can now happen in minutes from anywhere in the world with the speed of sending an email. We are pleased to partner with Lady Michelle Mone OBE, Doug Barrowman, and the Knox Group of companies on this exciting opportunity for Bitcoin and for property payments."
Buyers can view and purchase units at astonplazacrypto.com. Once 50 units sell for bitcoin, the developers will raffle off one one-bedroom apartment to purchasers.
