In New York City, real estate is an incredibly valuable thing. Typically, ownership of buildings in busy midtown Manhattan is reserved for development groups, businesses and the occasional high net worth individual. Now, a group of foreign real estate investors is hoping to buy up one of the most iconic buildings in the Big Apple, the Plaza Hotel, and they are considering the use of an initial coin offering (ICO) to make the investment possible.

Chimera Considers Plaza Token Sale

The group of investors is operating under the name Chimera, according to a report by CNBC, and they are weighing the option of using a "Plaza Token" to help fund the purchase. These tokens would be asset-backed securitized tokens, according to a draft version of the project's whitepaper. However, there is no definite plan in place at this point, as the deal has not yet been secured and finalized.

Though the deal is not officially confirmed as of yet, it appears that Chimera is serious about the token sale as a possibility. The ICO platform Securitize is reportedly advising the real estate investment group on the offering. The sale of such a token would offer cryptocurrency holders the opportunity to invest in luxury real estate in one of the most prestigious parts of the country. Token holders could also receive various concessions inside the Plaza Hotel itself.

ICO Could Aim for $375 Million

According to CNBC, the Chimera ICO could aim for more than $375 million in crowdsourced funds during the token offering, offering each investor a miniscule portion of equity in the group. As of this writing, however, no funds have been confirmed raised.

At this stage, talks have taken place between Shahal Khan, the principal investor for Chimera, and India's Sahara Group, the majority owner of the hotel. Khan's background is in precious metals and mining, as the founder of Colt Resources Middle East, which mines for copper, lithium and gold. Khan is also chair of Trinity White City Ventures, based in Dubai. Sahara Group has reportedly been seeking to sell its investment in the hotel for some time, as its chair has been involved in an ongoing scandal in India. (For more, see also: Why Chimera Is a Different Kind of REIT.)

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.