NATIONAL real estate and advisory firm LAWD has partnered with the Bricklet fractionalisation platform to bring to market a product which 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.
Through LAWD Bricklet, a ‘head title’ is split into a co-ownership register, creating a legally valid portion of a larger piece of land which may be traded on the LAWD Bricklet Marketplace, where buyers can invest in the Australian agriculture industry without the capital needed to purchase an entire property. The Marketplace also gives investors the ability to buy or sell Bricklets, providing liquidity and a pathway to accumulate a diversified land property portfolio.
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 intergenerational transfer of ownership.
“We know an historical 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,” Mr Foley said.
“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, with the choice to stay and operate in accordance with a management agreement.
“Just like shares in a company, buyers of LAWD Bricklets do not own an identifiable piece of the property, but rather become one of a number of co-owners who hold 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 he expected keen interest in the LAWD Bricklet Marketplace over 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 carbon or biodiversity credits that may be earned by the land under fractionation.
“We’ve gone live now, in advance of that predicted supply coming on board, to give potential buyers and sellers the opportunity to understand how the platform works.”
Giuseppe Porcelli, chairman of Bricklet says:
"It is exciting to be working in partnership with LAWD to take Bricklet into a whole new area of the property market. Bricklet gives everyone an opportunity to buy into Australia’s property market, wherever they want, or to broaden and enhance their investment strategy. Bricklet is lowering the barriers to rural property ownership.
Buyers can purchase and enjoy a property without the significant deposit that would usually be required. Investors in the 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."