In another boost to the bourgeoning fintech ecosystem in South Australia, international technology firm, Lakeba Group is gearing up to revolutionise the property investment sector by introducing blockchain technology to fragment land titles into 'bricklets'.
Lakeba Group's technology will make it more affordable for people to invest in property by enabling small parcels of a property title, known as 'bricklets', to be purchased by individuals. Bricklets can then be traded in the same way entire property titles are bought and sold, only incurring pro rata costs.
The technology will make property investment more affordable with people able to purchase individual bricklets, rather than buying entire properties.
Two apartments in Adelaide's tallest residential property, Kodo on Angas Street, recently completed by developer Flagship Group, will be the world's first properties to be fragmented this way.
Minister for Trade, Tourism and Investment David Ridgway said this will be a world-first innovation, so to have Lakeba Group choose South Australia to establish the technology in is a great win for the state.
"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, Mr Ridgway said.
"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.
"It's further proof that Adelaide is fast becoming a global destination for disruptive and innovative companies to establish their operations and launch their products to market.
"Bricklet is another great opportunity to come out of the Global Blockchain Summit which was held in Adelaide in March this year and has worked closely with the Department of Trade, Tourism and Investment to bring this exciting service to South Australia."
Lakeba Group expects to formally launch Bricklet to market in the coming weeks and will establish a presence at Lot 14
Chief Executive of Lakeba Group, Giuseppe Porcelli, said South Australia has been at the forefront of property innovation, ever since 1858, when Torrens Title was first introduced.
"Today this has matured into the fusion of property legislation and technology, showing the world how to fragment this very pervasive investment class," Mr Porcelli said.
"Bricklet will fragment property deeds into individual units and make them available for purchase through an on-line 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 - affording all the benefits of the Torrens Title property system, a 161-year-old South Australian innovation."
Mr Porcelli explained that Bricklet utilises the blockchain to provide security, transparency and independent assurance of the transactions.
Lakeba Group has teamed with technology partner IBM to scale the blockchain platform globally.
The Australian Financial Review recently voted Lakeba Group as one of Australia's most innovative companies - reaching the top ten for technology firms.
