DL Holdings updates on Carmel Reserve investment, tokenization plans

DL Holdings Group Limited announced a supplemental update concerning its connected transaction for a further subscription of a 15.10% Class B membership interest in Carmel Reserve LLC. The adjusted net asset value of Carmel Reserve LLC as at March 31, 2025, is $71,585 thousand. This figure was derived from a net asset value of approximately $67.11m, adjusted by the fair value of investment properties totaling approximately $111.30m as at the same date.

The company plans to tokenize approximately $40m worth of its Class B membership interest in ONE Carmel, viewing it as a quality real estate real-world asset (RWA). This initiative aims to facilitate future special dividend distributions to shareholders via distribution in specie and enable investment by potential on-chain investors. The tokenization process will involve establishing a compliant digital asset issuance structure, such as a special purpose vehicle, to digitize the economic rights associated with the Class B membership interest into security tokens.

Regulatory compliance is a key focus, with the tokenization to adhere to applicable Hong Kong Securities and Futures Commission (SFC) requirements, including AML and KYC vetting. Tokens are expected to be issued via a licensed virtual asset platform, with provisions for secondary trading on licensed exchanges and redemption mechanisms, subject to regulatory approvals.