A digital and innovative property investment
December 16, 2020
Property Token : « Digibrixx addresses all investors wanting to take advantage of the dynamism of Luxembourg real estate"
With its Digibrixx brand, Property Token is revolutionizing real estate investment in Luxembourg, making it accessible to all investors, large and small. To do this, the company relies on the power of blockchain technology and the creation of digital bricks backed by solid real estate. Details about the Property Token team.
Is Property Token a Luxembourg company?
Property Token is indeed a Luxembourg company. It is a creative initiative set up by several real estate, finance and blockchain technology professionals working in the Grand-Ducal market. Its partners are all recognized experts in their fields: BIL, Crea Haus SA, Espace Invest, Real2digital Sàrl, Tokeny, and INNO.
With your Digibrixx brand, you proclaim, "democratize real estate investment". What do you mean by that?
We take advantage of blockchain, which allows a financial asset to be split into an infinite number of shares. With Digibrixx, we divide actual real estate into small digital bricks. The greater the number of bricks, the more accessible they become in terms of cost. This thereby allows individuals to invest in large-scale real estate projects, without having to invest large resources. Investment will be more or less significant of course depending on the project, but we are talking about investments of just a few thousand euros. This is how Digibrixx democratizes real estate investment.
Does this digitization have other advantages, beyond purely financial aspects?
There are many advantages. During the investment process, the investor does not necessarily need to initiate procedures and negotiate with their bank in order to obtain a loan. One can thereby save time and money, especially when costs are reduced. Once the investment is made, one no longer has anything to worry about. The management of the property in which they invest is systematically entrusted to a real estate professional. It can be even more reassuring that the promoter of the "digitized" property is investing in the operation as well. It is therefore in their best interest to do everything possible to make the transaction profitable.
Is Digibrixx only for small investors?
Not only. With its special features, Digibrixx addresses everyone wishing to benefit from the dynamism of Luxembourg real estate. Our solution may be of interest to a cross-border individual who wants to grow a small capital, such as an SME manager wishing to build a supplementary pension. A holder of significant wealth however, may also choose Digibrixx to diversify and secure their assets, for example.
Explain to us the investment procedure that starts on the internet.
On the Digibrixx website, the user has access to a number of real estate investment projects in which one can invest. Each project is presented in detail. The percentage of funds raised is displayed, as well as the duration of the investment, and an estimate of the annual performance. When one of the projects looks interesting, one only needs to click on the available subscription form. They then communicate with the promoter, who is their direct representative, and then they are put in touch with our financial partner, BIL. BIL issues the digital securities, or tokens. The entire procedure is very simple and transparent.
How are investment projects selected?
Projects are submitted to us by promoters wanting to market one of their real estate products through our brand. Properties are systematically audited and selected by Digibrixx real estate experts. Only the most relevant and the most promising in terms of profitability are put online. Our priority is to ensure that investors make good transactions. These projects, which may be commercial spaces, offices or even residences, are always located within Luxembourg.
You say that a performance estimate is always made. Give us an example.
For our first project, which involves the Brahms building, the announced performance is 4.25% per year for an investment of 10,000 euros over 12 years. This is an estimate, not a commitment. Actual performance therefore might be better or worse. There is never such a thing as zero risk, even though the Luxembourg real estate market has shown strength and dynamism. We are very transparent on this point because we are well aware that we are not necessarily addressing informed investors. In terms of performance, it is also important to know that the money invested is used by the promoter to create a leverage effect to finance the real estate transaction, an approach that from the start, contributes to consolidating performance.
What happens after the investment period ends?
As soon as the investment project has started under good conditions, the investor recovers their initial investment, the capital gain realized on the sale of the property, as well as the share of the rents received, minus charges and fees related to the Digibrixx program. It's that simple.
Are all operations done online over the internet?
For the time being, Luxembourg and European legal and regulatory frameworks relating to digital assets (security tokens) do not yet allow this. When the legislation evolves and permits this, we will launch a digital platform allowing investors to sell, buy and trade their tokens securely over the internet. That said, Digibrixx is, of course, part of a well-defined legal framework, which is based on a securitization vehicle governed by the Luxembourg Law of March 22, 2004.
>>> For more information, please visit: www.digibrix.lu
With its Digibrixx brand, Property Token is revolutionizing real estate investment in Luxembourg, making it accessible to all investors, large and small. To do this, the company relies on the power of blockchain technology and the creation of digital bricks backed by solid real estate. Details about the Property Token team.
Is Property Token a Luxembourg company?
Property Token is indeed a Luxembourg company. It is a creative initiative set up by several real estate, finance and blockchain technology professionals working in the Grand-Ducal market. Its partners are all recognized experts in their fields: BIL, Crea Haus SA, Espace Invest, Real2digital Sàrl, Tokeny, and INNO.
With your Digibrixx brand, you proclaim, "democratize real estate investment". What do you mean by that?
We take advantage of blockchain, which allows a financial asset to be split into an infinite number of shares. With Digibrixx, we divide actual real estate into small digital bricks. The greater the number of bricks, the more accessible they become in terms of cost. This thereby allows individuals to invest in large-scale real estate projects, without having to invest large resources. Investment will be more or less significant of course depending on the project, but we are talking about investments of just a few thousand euros. This is how Digibrixx democratizes real estate investment.
Does this digitization have other advantages, beyond purely financial aspects?
There are many advantages. During the investment process, the investor does not necessarily need to initiate procedures and negotiate with their bank in order to obtain a loan. One can thereby save time and money, especially when costs are reduced. Once the investment is made, one no longer has anything to worry about. The management of the property in which they invest is systematically entrusted to a real estate professional. It can be even more reassuring that the promoter of the "digitized" property is investing in the operation as well. It is therefore in their best interest to do everything possible to make the transaction profitable.
Is Digibrixx only for small investors?
Not only. With its special features, Digibrixx addresses everyone wishing to benefit from the dynamism of Luxembourg real estate. Our solution may be of interest to a cross-border individual who wants to grow a small capital, such as an SME manager wishing to build a supplementary pension. A holder of significant wealth however, may also choose Digibrixx to diversify and secure their assets, for example.
Explain to us the investment procedure that starts on the internet.
On the Digibrixx website, the user has access to a number of real estate investment projects in which one can invest. Each project is presented in detail. The percentage of funds raised is displayed, as well as the duration of the investment, and an estimate of the annual performance. When one of the projects looks interesting, one only needs to click on the available subscription form. They then communicate with the promoter, who is their direct representative, and then they are put in touch with our financial partner, BIL. BIL issues the digital securities, or tokens. The entire procedure is very simple and transparent.
How are investment projects selected?
Projects are submitted to us by promoters wanting to market one of their real estate products through our brand. Properties are systematically audited and selected by Digibrixx real estate experts. Only the most relevant and the most promising in terms of profitability are put online. Our priority is to ensure that investors make good transactions. These projects, which may be commercial spaces, offices or even residences, are always located within Luxembourg.
You say that a performance estimate is always made. Give us an example.
For our first project, which involves the Brahms building, the announced performance is 4.25% per year for an investment of 10,000 euros over 12 years. This is an estimate, not a commitment. Actual performance therefore might be better or worse. There is never such a thing as zero risk, even though the Luxembourg real estate market has shown strength and dynamism. We are very transparent on this point because we are well aware that we are not necessarily addressing informed investors. In terms of performance, it is also important to know that the money invested is used by the promoter to create a leverage effect to finance the real estate transaction, an approach that from the start, contributes to consolidating performance.
What happens after the investment period ends?
As soon as the investment project has started under good conditions, the investor recovers their initial investment, the capital gain realized on the sale of the property, as well as the share of the rents received, minus charges and fees related to the Digibrixx program. It's that simple.
Are all operations done online over the internet?
For the time being, Luxembourg and European legal and regulatory frameworks relating to digital assets (security tokens) do not yet allow this. When the legislation evolves and permits this, we will launch a digital platform allowing investors to sell, buy and trade their tokens securely over the internet. That said, Digibrixx is, of course, part of a well-defined legal framework, which is based on a securitization vehicle governed by the Luxembourg Law of March 22, 2004.
>>> For more information, please visit: www.digibrix.lu