Brickx, the fractional property ownership platform, has received investment from Reinventure Group, Westpac Banking Corp’s venture capital fund. The exact amount of the investment has not been disclosed. This marks Reinventure’s 17th investment, and the group has received $100 million of funding from Westpac. Reinventure has also invested in other property-related startups, such as openagent.com.au and Nabo.
Reinventure was attracted to Brickx due to its holistic approach to property financing, buying, and living. Around half of Brickx’s 7,600 investors are under the age of 35, and 75% of them have never had exposure to residential property. The platform allows investors to purchase “bricks,” or part-ownership rights, that provide access to capital gains on the property and rental income. Bricks can be sold on the platform, and each of the current 14 properties is split into 10,000 bricks.
According to Brickx CEO Anthony Millet, many investors have been buying “bricks” as an alternative to bank deposits. Banks are also interested in Brickx because it can provide self-managed superannuation funds with property exposure without the need to buy an entire property and manage it. The platform may potentially be used to create an alternative to a reverse mortgage, freeing up home equity for retirees able to bring their existing property onto the platform.
