When properties have a significant future upside, an “opportunity-cost conundrum” is created for investors or developers whether to sell properties before the surge in value arrives. Property Fractionalisation can offer a solution.

One such conundrum I see is caused by the Olympics coming to Brisbane in 2032. Still some time away, but Brisbane is already seeing the beginnings of massive upgrade in infrastructure and population surge in preparation for the event itself.

Such massive expenditure from both the state and federal governments, together with the investment contribution provided by the International Olympic Committee, will push Brisbane property values, as more people will create more customers needing more space ultimately paying more rent. Particularly for in-city properties where land is scarce. And more rent of course, means the property value increases.

The Northshore, Brisbane precinct is one of the epicenters of this Olympics induced make-over. Not only is it, an inner city location, and land is limited, the precinct is set to accommodate Olympic 2031 Athletes Village, it also has a substantial residential community and arts precinct to boot. It’s located on the Brisbane River as well, making it aesthetically pleasing. The government is also encouraging industry to the precinct with new biomedical, vaccine plant “VAXXAS” .

It must be quite a conundrum for investors and developers who own properties in this particular area where they know its only a matter of time until opportunity comes knocking on their door, this versus extracting equity from their property, and going on to develop to expand in other ways

Fractionalising the asset could be the answer where they could potentially have the right to buy back the property or perhaps join with other investors in having an equity stake in the investment, both alternatives providing the owners with the ability to extract equity in the property.

One of our clients has recently secured an 7000sqm approx. office development from a developer who continues is intending to initiate more office developments in the area. Our clients who will offering the investors are stake in the investment via a fractionalised ownership structure.

If you would like to know more about fractionalising your property or investing into a fractionised investment property please contact Robert Stanley-Turner for details at rob@boxcom.com.au

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