Legally defining, Piece is a subordinated bearer bond relating to a certain property owned by the issuer. It is structured as an electronic security and further classified as crypto securities under the German Electronic Securities Act (eWpG), ensuring immutable record-keeping on the blockchain.
This financial structure is designed to provide investors with qualified subordinated claims against the Issuer, which are detailed as follows:
1. Debt Instrument (Bond Status) The Product enables the bondholders to acquire qualified subordinated claims against the Issuer for the repayment of principal on the Maturity Date.
2. Returns (Variable Interest & Bonus) The investment provides two streams of potential returns:
Variable Interest: The amount of the variable interest payments is based on the current net rental income generated by the Property and is calculated quarterly based on standard calendar periods (e.g., periods ending 31 March, 30 June, 30 September, and 31 December).
Bonus Interest: A final bonus interest is payable at the Maturity Date. This value is determined by a share of the net proceeds from the sale of the Property, typically set at 80% of the net sale proceeds, relative to the bondholder's relevant share of the issuance.