NATIONAL real estate and advisory firm LAWD has brokered an exclusive deal to deliver Bricklet fractionalisation to the rural market.
This is particularly suited to the farming sector, as it allows farm titles to be split and sold in parcels.
For buyers, this means a lower cost entry to the agri-market, while sellers can free-up equity in their farms for diversification projects or personal spending.
LAWD chief executive officer Enda Foley said the platform would be a powerful new mechanism for agricultural landowners to draw capital from assets or plan for inter-generational transfer of ownership in their succession planning.
"We are pleased to bring to market a product that both democratises ownership of Australian farmland and delivers a new pathway for farm owners to plan for succession or draw capital from their agricultural assets," Mr Foley said.
Through LAWD Bricklet, a 'head title' of a property is split into a co-ownership register.
This creates a legally valid portion of a larger piece of land which may be traded on the LAWD Bricklet Marketplace.
On Marketplace, buyers can invest in the Australian ag industry without the capital needed to purchase an entire property.
"Marketplace gives investors the ability to buy or sell Bricklets," Mr Foley said.
"This is providing liquidity and a pathway to accumulate a diversified land property portfolio.
"We know a challenge of the farm sector has been landholders owning properties of very high value with limited ability to access the capital held within these assets.
"Through LAWD Bricklet, they now have the option to sell some - or all - of the property and receive capital through the sale of fractionated bricklets."
Mr Foley said land owners had the choice of whether to stay and operate the farm in accordance with a management agreement.
Just like having shares in a company, buyers of LAWD Bricklets do not own an identifiable piece of the property.
Rather, they become a co-owner who holds a fraction of the asset.
"There is also the option for vendors to simply fractionate the land, then apportion LAWD Bricklets for succession planning purposes, which may be helpful in addressing the challenges often posed by intergenerational transfer of ownership," Mr Foley said
LAWD expects keen interest in its LAWD Bricklet Marketplace in coming months.
, with future supply to likely include a diversity of properties given the broad range of benefits the platform will bring to users - from those who may want to feel part of the farm community and own just a small piece of land, to other - more significant - investors.
"We see the appeal of LAWD Bricklet being broad, in that it has the capability to provide affordable, simple entry for those who have a personal interest in food production or rural lifestyle, at the same time as holding potential for corporates, high-net-worth parties and self-managed funds to benefit from the simple process the platform provides to receive income distributions from Bricklets that offer yield.
"Or the system may appeal to those interested in carbon or biodiversity credits that may be earned by the land that is held under fractionation."
Mr Foley said the system had gone live in advance of that predicted, more range of supply coming on board, to give potential buyers and sellers the opportunity to understand how the platform works.
He said initial interest had surprisingly come from communities seeking to own land in a type of cooperative structure as a means of food security and physical access to the farming lifestyle.
Mr Foley said the next cabs off the rank were likely to be wineries, where there were many interests wanting to own a piece of a winery.
"Then, when understanding and confidence has broadened, we believe there will be a more widespread level of appeal to self-managed superannuation funds, the retail market and mum and dad investors wanting some exposure to agricultural interests and/or yield, as well as the potential access to carbon or biodiversity offsets that attach to the land.
Giuseppe Porcelli, Chairman of Bricklet and its parent company Lakeba, said it was exciting to be working in partnership with LAWD to take Bricklet into a whole new area of the property market.
"LAWD Bricklet gives everyone an opportunity to buy into Australia's property market, wherever they want, or to broaden and enhance their investment strategy," Mr Porcelli said.
"The platform is lowering the barriers to rural property ownership.
"Buyers can purchase and enjoy a portion of property, without the significant deposit that would usually be required.
"Investors in LAWD Bricklets can have exposure to this sector and reap the rewards of diversification of their portfolio.
"They can also enjoy the knowledge that they are participating in supporting Australia's rural communities, including properties that are offsetting carbon emissions."
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