DigitalX Limited announced it has entered into a binding strategic partnership agreement (Agreement) with Bricklet Limited (Bricklet) through which the parties will combine their respective technology, expertise and resources to lower barriers to home ownership for everyday Australians. Under the Agreement, DigitalX will help to accelerate commercialisation of the Bricklet program by seeking to provide equity funding directly, indirectly (via introductions) or through dedicated investment vehicles to support property purchases made by Bricklet customers. Eligible buyers will pay a small deposit to set up the transaction, with equity funding sourced by DigitalX filling the `deposit gap' required to purchase the property. The first ranking mortgage home loan will be provided by another Bricklet partner, AMP Bank, who will conduct the serviceability checks prior to finance approval. The partnership means buyers get all the benefits of living in their own home, and the financial gains from price growth on their share of the house. Equity funders that provide the deposit gap will be entitled to receive a monthly income stream of `rent' on its investment in each property, as well as the
proportional capital return upon the sale of the property by the homeowner. Under the Agreement, DigitalX's initial commitment is to secure, on a best endeavours basis, funding of up to $5.0m for proposed property investments which DigitalX chooses to participate in. As part of the seed capital to launch its new fund, DigitalX will contribute up to $500k of balance sheet funds into Bricklet's property deals until its newly formed investment fund, named the DigitalX Real World Asset Tokenisation Fund ("RWAT Fund") is established specifically for this purpose. Once the RWAT Fund is established, balance sheet investments will be transferred to the new fund. Bricklet will co-fund transactions alongside DigitalX's balance sheet investments, with future equity funding to be sourced by investors investing via the RWAT Fund or via introduction to Bricklet. DigitalX will generate revenue through management fees based on the assets under management as well as commission and settlement fee. The RWAT Fund will invest in a diversified range of digital assets across the traditional asset classes. All digital assets will be validated and assessed by DigitalX using proprietary smart contracts and investment criteria. The RWAT Fund will only be available to wholesale investors. Bricklet provides the platform that enables property funds such as DigitalX to finance the deposit on a home purchase and receive an equity stake aligned to their contribution. The buyer makes mortgage repayments, in addition to paying an occupancy fee to the investor as part owner of the property. At any time, the homeowner can buy out the investor portion of the equity, or the homeowner can choose to sell the property. Bricklet's equity share program is a co-ownership solution that allows people to purchase their own home, with a deposit of as little as $20,000. Bricklet breaks property into smaller pieces to enable everyone to buy into Australia's housing market.