3. INDUSTRIAL REAL ESTATE FOR LAYER 1

Uncovering the Layer 1 Opportunity

Bricklayer’s founding team will propose the genesis real estate acquisitions (Layer 1) to secure base-layer solidity for the sustained longevity of the Treasury.

Layer 1 involves acquiring a collection of industrial warehouses in Dubai, United Arab Emirates (UAE), tenanted by high credit-worthy tenants (US Fortune 50, e.g. Amazon.com, Tesla, etc.) on institutional 10–20 year lease terms.

The industrial real estate sector has seen significant growth and development over the past few years. Dubai is strategically located between Europe and Asia, making it a key hub for trade and commerce. The government has been proactive in developing infrastructure and creating business-friendly policies, which has attracted numerous industrial companies to set up their operations in the city.

Dubai's industrial real estate market is primarily focused on logistics and warehousing facilities, with a particular emphasis on serving the region's e-commerce and retail sectors. The city's strategic location, coupled with its state-of-the-art infrastructure, including airports, seaports, and highways, has made it a preferred destination for logistics and distribution centers.

The industrial real estate market in Dubai is primarily concentrated in areas such as Dubai South, Dubai Industrial City, and Jebel Ali Free Zone. These areas offer a range of industrial spaces, including warehouses, factories, and production facilities.

Additionally, the government of Dubai has implemented several initiatives to support the growth of the industrial real estate sector. These initiatives include offering tax incentives, providing subsidized land and utilities, and developing specialized industrial zones to cater to specific industries.

Effecting this strategy underpins the Treasury’s Net Asset Value (NAV) and produces consistent dividends from tangible, Class A real estate assets, ensuring the most risk adverse inception of the Treasury.

The founder’s employment tenure at the world’s largest e-retailer’s real estate team coupled with their vast experience in the industrial warehouse sector allows Bricklayer to leverage direct occupier relationships and valuable market intelligence to ensure Layer 1 investment confidence.

Exploring the Expanding Dependency on e-Commerce

Since dependency on e-commerce was exacerbated by the recent pandemic, industrial real estate is now considered the most resilient sector for investment. Last-mile logistics and warehousing is recognized, more than ever, as the essential component of a Metro Service Area’s (MSA) infrastructure network. E-commerce has seen a year-over-year growth rate that skyrocketed to 44.5 % in 2021 (Jdsupra, 2022).

Existing supply chain difficulties have been a compounding factor to the rise in demand, as occupants are compelled to carry additional inventory, absorb potential network failures, maintain service performance, and meet rising consumer demands.

Overall, the industrial real estate sector in Dubai is expected to continue growing in the coming years, mainly driven by tourism and an increasing UAE population, supported by the government's efforts to create a favorable business environment.

Expert knowledge of the market drivers within this most resilient of asset classes, combined with the sector’s most in-demand credit tenants, will provide the most stable, income-producing platform to support the consistent expansion of the Treasury.

Occupier diversification post Layer 1

As the portfolio and our Bricklayer community expands, the DAO may vote to source additional occupier relationships and diversify into international territories and alternative real estate asset classes including residential (Layer 2).

Our tokenization facility allows members to tokenize assets introduced to Treasury and our community can democratically vote to purchase between 1% and 100% ownership of a diverse selection of real estate opportunities introduced to the DAO.