May 25, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Leading Australian real estate and advisory firm LAWD has partnered with fractionalization platform Bricklet to launch LAWD Bricklet, a venture designed to democratize ownership of farmland and provide a new way for farmers to plan for succession or draw capital from their agricultural assets. 

To accomplish this, LAWD Bricklet splits a “head title” into a co-ownership register, creating a legally valid portion of a larger piece of land. This portion can then be traded on the LAWD Bricklet Marketplace, where buyers can invest in Australian agriculture without the capital requirements associated with acquiring a property in its entirety. 

This Marketplace will also give investors the ability to buy or sell “bricklets”, providing liquidity and the means to curate a diversified land portfolio.

Enda Foley, CEO, LAWD, noted that this platform is potentially a powerful new tool for agricultural landowners, enabling them to draw capital from assets or to plan for ownership transfer to the next generation of farmers. 

“We know a 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,” said Foley. 

“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.”

Foley continued, “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.”

“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.”

Bricklet originally worked within Australia’s homeowners market as a co-ownership, equity-share platform helping people toward home ownership. But this new partnership with LAWD opens an entirely new opportunity for the company in the agricultural asset 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,” said Giuseppe Porcelli, chairman, Bricklet and its parent company Lakeba.

“Investors in LAWD Bricklets can have exposure to this sector and reap the rewards of diversification of their portfolio,” Porcelli continued. “They can also enjoy the knowledge that they are participating in supporting Australia’s rural communities, including properties that are offsetting carbon emissions.”

Foley expressed his expectations for marked interest in the LAWD Bricklet Marketplace over the coming months, including a future supply of broadly diverse properties given the range of benefits the platform provides. 

Users ranging from those interested in gaining a minor role in the farming community through ownership of a small parcel, to more significant investors, have the opportunity now for early engagement.

“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,” said Foley. “At the same time, [the Marketplace] holds 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,” noted Foely, “to give potential buyers and sellers the opportunity to understand how the platform works.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.