A technology firm has announced its plans to “revolutionise the property investment sector” through utilising technology to divide land titles into small, affordable pieces.
Lakeba Group will use blockchain technology to fragment property titles into what it has dubbed ‘bricklets.’
CEO of Lakeba, Giuseppe Porcelli explained, “Bricklet will fragment property deeds into individual units and make them available for purchase through an online market.
“As a purchase is made, the fragment of that property deed will be transferred from vendor to owner, who will be listed directly on the property deed.”
The more reasonably priced bricklets can be purchased by individuals who are unable to afford entire properties, with the bricklets able to be traded in the same way whole property titles are bought and sold, only incurring pro rata costs.
According to Darren Younger, head of commercialisation at Bricklet, investors can now buy into real estate “very quickly and easily.” Further, bricklets will make diversifying one’s property portfolio a much more attainable goal.
Two apartments in Adelaide’s recently completed residential property, Kodo on Angas Street, will be the world’s first properties to be fragmented in this way.
According to the company, “The test will confirm that Bricklets create greater liquidity in the property sector, with demand for the first 40 bricklets already oversubscribed.”
David Ridgway, Minister for Trade, Tourism and Investment in South Australia, said that Lakeba’s choice to launch in Adelaide is a “great win” for the state.
“It’s exciting to see a company like Lakeba Group utilise blockchain to set up what could possibly be a globally significant service from right here in Adelaide,” Ridgway said.
"Australians will potentially be able to become investors in property for as little as $25,000 – directly holding the fragment of the property deed rather than investing in a trust, financial product, or other intermediary platform.”
Lakeba expects to formally launch Bricklet to market in the coming weeks.
“The plan is to launch into the other states very quickly. We should be in at least four more states within the end of this year, with a national rollout by June or July of next year,” said Younger.
Lakeba and IBM, its technology partner, will then work together to scale the blockchain platform globally.
Lakeba Group was recently named as one of Australia’s most innovative companies by the Australian Financial Review, reaching the top ten for technology firms.
