Investors looking to avoid large upfront payments typically associated with property investments can now purchase portions of a property, called “bricks,” for under $100 through BRICKX, Australia’s first residential property investment “stock exchange.”
BRICKX, launched by Markus Kahlbetzer’s alternative investment firm BridgeLane, allows investors to set up an account online and buy or sell bricks without attending auctions.
It took Kahlbetzer and his CEO, Anthony Millet, two years and a $3.5 million investment to develop Australia’s first fractional property investment model.
Each property is divided into 10,000 bricks, and no single investor can own more than 5% of the bricks, ensuring a minimum of 20 investors. BRICKX currently offers five initial properties for investment in Sydney and Melbourne.
BridgeLane underwrites each property but does not own them. Instead, the properties are placed in trusts managed by Theta Asset Management, which also serves as the property’s responsible entity.
BRICKX charges a 1.75% commission for each brick transaction. Investors can choose to continue or discontinue their investments after five years. Additionally, 50% of a property’s investors can opt to wind up the investment at any time. Investors can also sell their bricks to other investors using the trading platform.
BRICKX has already attracted nearly 200 pre-launch investors who have invested $400,000 in bricks.
