Digibrixx Democratizes Real Estate via Tokenization

Luxembourg, December 2020 – With Digibrixx, blockchain technology makes its entry into the property investment market in Luxembourg. Developed by Property Token, the Digibrixx brand is a solution enabling anyone wishing to invest in property in Luxembourg to purchase digital bricks backed up by real, solid bricks and mortar. The project has been made compliant thanks to the T-REX protocol and the solutions provided by Tokeny Solutions.

The benefits of digitalisation

Digibrixx breaks a property down into small digital bricks (or tokens). An investor can then buy one or more of those bricks for a few thousand euros. In other words, Digibrixx democratises property investment, making it accessible to everyone.

Digibrixx brings simplicity, ease and flexibility. The investor has no need to involve their bank, get tied up in red tape with the authorities or have to keep monitoring their property. It is managed by a professional throughout the whole process. The administrative costs borne by the investor are therefore also reduced.

For all investors

Given how flexible and accessible Digibrixx is in financial terms, this investment is aimed at all people who want to invest in bricks and mortar.

It could be an attractive option for someone near the border who wants to invest in Luxembourg and take advantage of its dynamic property market, while at the same time ensuring they do not need to dip into their borrowing facilities to finance the purchase of a home of their own.
Digibrixx is also aimed at anyone seeking to diversify their assets, but keep a large degree of agility and freedom for manoeuvre.

Digibrixx also offers a suitable investment solution for self workers who want to invest in property but sometimes face obstacles because of the employed banks’ requirements when it comes to borrowing, given their employment status.

How does Digibrixx work?

When they visit the Digibrixx site, investors can learn about the different investment projects in which they have an opportunity to invest.

Those projects are owned by developers who offer serious guarantees and who have chosen to sell one or another of their property projects via the Digibrixx brand. Assets are automatically audited and selected by Digibrixx experts, who have a background in immovable property.

Transparency is essential. Each project is covered by a detailed presentation. The percentage of funding already raised is automatically stated and an estimate of the annual performance is given.

Investments are therefore appropriate, secure and transparent.

What project, and what will the returns be like?

The money gathered by the developer is used to create leverage and finance the property operation. The investor therefore sees an immediate growth in their return. The process also provides an additional security guarantee for the investor: the developer, too, invests in the project, as does the bank which grants a loan.

During the investment period the building is constructed and put up for rent. At the end of that period, which is specified straight away, the subscriber recovers their initial investment, the capital gain on the sale of the property, and their share of the rental income, minus the charges and fees relating to the Digibrixx programme.

Risk is weighted because Digibrixx is based on an existing property asset, and the Luxembourg market cannot collapse overnight. Over the past decade it has actually proved its resilience through a steady continuously upward trend. But, as with any investment, there is an element of risk.

Toward a digital exchange platform

Digibrixx has already launched its first property investment project. The entry price was voluntarily set at 10,000 euros to attract qualified investors.

The ambition is quickly to roll out offers aimed at the “general public”, allowing property investments in the Grand Duchy amounting to a few thousand euros, or just a few hundred.

Digibrixx is also considering the rollout of an online trading platform which will allow investors to sell, buy or even exchange their tokens with total freedom and ease. That innovation will be launched once the legal and regulatory frameworks governing digital assets in Luxembourg and Europe (security
tokens) allow.

But, right now, Digibrixx falls within a well-defined legal framework based on a securitisation vehicle governed by a Luxembourg law dated 22 March 2004.

About Digibrixx

The Digibrixx brand is developed by Property Token, which has a wealth of complementary talents in the fields of property, finance and blockchain technology. Its partners are all recognised experts in their fields: BIL, Crea Haus SA, Espace Invest, Real2digital Sàrl, INNO.

About Tokeny Solutions

Tokeny Solutions allows financial actors operating in private markets to compliantly issue, transfer and manage securities using distributed ledger technology, enabling them to improve asset liquidity.

Due to disconnected and siloed services that are currently used to enforce trust, private markets experience poor asset transferability with little to no liquidity. By applying trust, compliance and control on a hyper-efficient infrastructure, Tokeny Solutions enables market participants to unlock significant advancements in the transferability and liquidity of financial instruments.

Tokeny Solutions is the leader in its field and in 2019 they were included in KPMG’s top 100 FinTechs globally, awarded Luxembourg’s FinTech of the year and raised €5mn in funding from the leading pan-european exchange, Euronext.