What is the minimum amount to start investing in a Digibrixx programme?
Each Digibrixx programme is accessible from a one-square-meter investment. The value of a square meter is defined by the total acquisition value divided by the total surface before bank co-financing.
What is the value of one Digibrixx?
The nominal value of a Digibrixx token is of 500 EUR at the issuance. Each programme is a specific token issuance with a recurring nominal value.
What are the differences with a “traditional” real estate investment?
The duties of the investor are limited to its subscription to a Digibrixx programme. The investor contributes to the financing of the programme, has access the financial performance of the asset and its capital gain but is not the effective owner.
Beforehand, Digibrixx selects a programme for its financial performance, takes care of the notarial, legal, and other administrative duties. Digibrixx also selects a local bank for the co-financing.
Once the building construction is completed, Digibrixx supervises all the aspects related to the management of the real estate asset till its sale.
In due course, Digibrixx informs the investors on the progression of the programme.
The investors’ risks are limited to the invested amount and no additional financing will be necessary for the building management.
Who is the owner of the real estate asset?
Each real estate asset is owned by a legal entity which is jointly financed by the investors and the appointed bank. The investor is not the real estate owner nor the company shareholder. The investor’s financial counterparts are the capitalized interests on the loan and the capital gain at the sale of the property.
Am I allowed to participate in the asset or the legal entity governance?
Digibrixx ensures the proper governance of the legal entity owning the building, thus the investor will not attend the general meetings of the building. Key information will be periodically shared with the investors.
What are the advantages to invest in Digibrixx tokens?
Digibrixx tokens are a direct access to participate into Luxembourg real estate development programmes from a few thousand euros. Until now, this specific market was limited by high investment barriers for any future owner or investor. Digibrixx have significantly lowered these barriers.
The investor does not have to take out a mortgage which would impact the personal debt-to-income ratio.
The investor is free from any real estate management duties.
Digibrixx tokens are meant to be tradable in the (near) future, thus turning real estate investments into fully liquid assets.
What is my expected return? Is it guaranteed?
The expected return varies for each curated programme. The performance of your investment is not guaranteed but it remains paired with an existing asset. You also benefit from the increase of the value of the property.
What are the potential risks for this non-guaranteed investment?
The financial risk for the investor is limited to the invested amount.
In other words, it is less risky than personally buying a new real estate asset as each programme is meant to include more than one unit and the investor bears no liability.
If the performance was to be lower than expected, the yearly income of the programme will be first allocated to the loan repayment, the property management, and then the other administrative fees.
When do I get the return on my investment?
The return of the investment will be cashed at the end of the programme or when an investor sells Digibrixx tokens to another investor.
What is the tax treatment of my return?
As specified in subscription contracts, the return on investment can be distinguished between interests and capital gains. The applicable tax treatment e.g. withholding taxes, will vary depending on the investor specifics, e.g. physical person or legal entity, tax residency. Before holding Digibrixx tokens, you should assess your personal situation and specifics.
Who are the professionals collaborating involved in Digibrixx programmes?
Digibrixx is a curated ecosystem with an in-house team, founders with complementary expertise on real estate, finance, compliance and blockchain. The skillset is completed with external legal advisors, financial service providers and a dedicated Decentralised Finance platform made in Luxembourg.
How are the programmes selected?
Digibrixx programmes are selected based on their locations, on the destination of the building, in line with our focus on sustainable development goals, in collaboration with the realtor ensuring its construction and expected financial performances.
Where should I transfer the money to?
The mission of Digibrixx is to inform the Luxembourg audience about existing investment programmes. When it comes to becoming a Digibrixx token holder, the candidate will be redirected to the issuing entity, Real2Digital SàRL.
Can I choose the building I would invest in or is it a mixed portfolio of various real estate items?
By opposition to a classical real estate fund, Digibrixx creates a tangible link between the investor and real estate programme.
You can choose from existing programmes available on Digibrixx website. Each issuance is related to an identified building and its dedicated real estate development programme.
Will I benefit from the rents during the investment period?
No, the rental fees are meant to remain at the legal entity level.
These fees generated by the management of your selected project will cover the repayment of the bank co-financing and the administrative fees of the asset. Over the years, your stake over your square metre will increase along the bank mortgage reimbursement.
If the rental incomes are higher than the property management costs, it will be used to accelerate the bank co-financing repayment and ultimately, it will be transferred to the investors.
How long is the investment period?
The maximum period of investment till the contract maturity is of 12,5 years.
Can I sell my Digibrixx during the investment period?
Digibrixx tokens can be sold during the investment period to other parties. In the (near) future, Digibrixx tokens are meant to be tradable, thus turning real estate investments into fully liquid assets.
Which is the Blockchain technology used for Digibrixx tokens?
All Digibrixx tokens’ transactions are recorded on the Ethereum blockchain. To increase transactions and cost efficiency, the platform processing is digitised with Polygon technology beforehand.
Is the Digibrixx token classified as a crypto asset or a security token?
The Digibrixx token is classified as a security token because it represents a financial product issued by a compliant securitisation vehicle in respect to the existing Luxembourg legal framework.
By design, this compliance brings more legal transparency for the investor, e.g. investor and funds due diligences.