BMVProp plans fractionalised asset offerings in Malaysia

PETALING JAYA: Australia-based BMVProp is planning to offer fractionalised assets with a collective value of RM600 million in Malaysia to address the current property overhang issue.

The fractionalised assets will be offered to the public via its platfrom based on their valuation.

Owners of the property are entitled to the rental proceeds as well as to sell the assets to others with an annual valuation as a reference price for the fractionalised asset.

Initially, BMVProp will distribute rental returns to investors on a quarterly basis denominated in Australian dollar with a possibility of offering returns on a monthly basis in the future with multiple currency options.

According to the platform director Alex Knight (pix), BMVProp is currently undergoing due diligence process for properties with a total value of RM600 million and that the platform is expected to be launched by the end of this year.

“We genuinely believe that this is a solution that could help people sell more properties and invest in properties as well.”

For its foray into the Malaysian property market, BMVProp has set its sights on assets in Kuala Lumpur, Johor Baru, Penang and Langkawi.

Knight said the main considerations to acquire a particular property is long-term rental potential, rental yield as well as capital growth potential.

He explained that with the lower threshold of investment via fractionalised assets, BMVProp is able to expand its reach to more customers and investors, hence translating into a larger market size and better sales.

According to Knight, the platform will be looking at numerous pension funds in Australia, also known as superannuation funds.

“We are increasingly looking internationally to find opportunities that we believe can generate returns for investors.”

Out of the country’s super-annuation funds, he said an estimated US$167 billion (RM699 billion) will be heading overseas into international investments.

“So we’re not going to be just defined to Australia, we’ll have properties all over Asia Pacific in our portfolio, but one particular interest of ours is properties in Malaysia given the current issues of overhang.”