Lakeba’s proptech business, Bricklet, has forged an innovative strategic partnership with DigitalX Limited (“DigitalX”, ASX:DCC), combining their respective technologies to empower individuals in realising their homeownership aspirations.
Bricklet is lowering the barriers to homeownership. Its ‘Homeowner’ equity share program is enabling buyers who don’t have a 20 percent deposit, but have an appropriate income to service their loan, to purchase residential property as an owner-occupier. Home buyers pay a small deposit, with DigitalX seeking to provide the equity funding to fill the ‘deposit gap’ required to purchase the property.
DigitalX considers that residential property provides a good case for the introduction of
fractionalised ownership and real-world asset tokenisation and is in the process of establishing a dedicated investment vehicle, the DigitalX Real World Asset Tokenisation Fund (“RWAT Fund”), to enable the funding of tokenisation of real world assets. As part of the seed capital for this innovative new fund, DigitalX will contribute up to $500k of balance sheet funds into Bricklet’s property deals until the RWAT Fund is launched.
Bricklet will co-fund transactions alongside DigitalX’s balance sheet investments, with future equity funding to be sourced, on a best endeavours basis, by investors investing via the RWAT Fund or via introduction to Bricklet.
Darren Younger, Bricklet CEO said:
‘It is exciting to have DigitalX join us on the Bricklet journey. This is an excellent example of two innovators in different industries joining forces to achieve an important outcome for everyday people.
Bricklet’s blue sky thinking about how to make it possible for mums and dads to get on the property ladder has now been brought together with DigitalX’s funding structures. Together we have used cutting-edge technology to solve the real-world problem, and make good returns for investors.“
The Bricklet and DigitalX partnership means buyers get all the benefits of living in the home, and the financial gains from price growth on their share of the house. DigitalX receives an income stream of ‘rent’ on its investment in each property. The home loan is provided by AMP Bank.
DigitalX’s CEO, Lisa Wade said:
‘DigitalX is excited to work with Bricklet to further the cause of housing affordability for all Australians. We believe our Real World Asset Tokenisation Fund can solve real-world problems, whilst at the same time achieve quality and sustainable investor returns. We see partnering with digital asset firms such as Bricklet as the perfect way to bring our real-world asset token fund to life’.
Giuseppe Porcelli, CEO and Founder of Lakeba Group says:
‘We are very excited about this milestone. It showcases that Lakeba Group is a pioneering technology company at the forefront of PropAI and DoxAI (Bricklet is a proptech business of Lakeba).’
Please read the full ASX release here: https://lnkd.in/gEC5ETbD
How Bricklet works
Bricklet provides the platform that enables property funds such as DigitalX to finance the deposit on a home purchase and receive an equity stake aligned to their contribution. The buyer makes mortgage repayments, in addition to paying an occupancy fee to the investor as part owner of the property. At any time, the homeowner can buy out the investor portion of the equity, or the homeowner can choose to sell the property.
Bricklet’s equity share program is a co-ownership solution that allows people to purchase their own home, with a deposit of as little as $20,000. Bricklet breaks property into smaller pieces to enable everyone to buy into Australia’s housing market.
Bricklet and its sister company Eziprop, have also launched the Australian Property Co-Ownership Register (APCOR). The APCOR uses blockchain technology to speed up and reduce the cost of registering a change in property co-ownership. It provides a direct link between the land title and the co-owners, with the first transactions appearing on New South Wales Land Registry in 2022. In real-time, it registers a secure, immutable record of ownership of the buyer’s share in the property. In addition to the security that this technology brings, the speed and cost of registering the land title change is reduced to almost zero, significantly increasing liquidity in the property market.
About DigitalX (ASX: DCC)
DigitalX is an ASX listed technology and investment company focused on growing the blockchain economy through its digital asset funds management business, digital fintech and regtech products, and blockchain ventures.
Through its asset management division, DigitalX provides low-cost traditional asset management products for qualified investors looking to gain exposure to the growing alternative asset class of digital assets.
Real World Asset Tokenisation Fund (“RWAT Fund”)
DigitalX’s intention is to tokenize its investments in select Bricklet properties. The RWAT Fund is innovative in the world of programmable assets. It offers multiple pools of real world asset tokens. Each token is a digital representation of the investment characteristics of a real world asset. The RWAT Fund uses asset tokenisation to make its investment process more transparent, efficient, and cost-effective.
The RWAT Fund is DigitalX’s solution to real world problems by allowing for instant settlements and fractional ownership of assets. Tokens in the Bricklet pool are backed by shared ownership in a particular property. The equity share in each property is recorded in the Australian Property Co-Ownership Register, a blockchain database managed by Bricklet and connected to State Land Registry. The RWAT Fund will only be available to wholesale investors.