Propopoly has secured its first Auckland development site for an AUD $8.9 million townhouse project, to be delivered through a fractional equity structure for retail investors.
The Onehunga site is planned as an eight-unit townhouse development aimed at owner-occupiers and entry-level buyers. Investors will take stakes across the full development cycle through shares in a special purpose vehicle set up for the project.
The deal is the first live project for the New Zealand property investment platform, which uses tokenisation to let retail investors buy into residential developments often limited to wealthier backers. The offer is being issued through Victor Lima 6, with a capital raise targeting up to NZD $1.64 million and a minimum of NZD $1.27 million required to proceed.
Individual investment is capped at NZD $65,800. More than 150 retail investors have already taken part in the raise or started an application, according to Propopoly.
How it works
Under the structure, investors hold shares in a vehicle established solely to acquire and develop the Onehunga site. Their returns are tied to the performance of the completed development once the homes are built and sold.
The model follows guidance issued by the Financial Markets Authority, which Propopoly says allows everyday investors to access development projects without large deposits, personal guarantees, or the level of capital usually required of developers. It also creates a route for smaller investors into a part of the property market that has become harder to access.
Securing the site moves the platform from fundraising into execution, with the land and project delivery now defined. Construction is expected to begin after the raise is completed, with delivery estimated at nine to 12 months.
Founder Dehardt van der Merwe said the acquisition was a key step as the platform tests the model in a live setting.
"This moves the model into a live project environment, where land, consenting and delivery are all clearly defined," van der Merwe said.
Digital assets
Propopoly has also widened the raise by allowing investors to participate using digital assets such as Bitcoin alongside conventional payment methods. The move creates another entry point for digital asset holders seeking exposure to a residential development project.
The change reflects what the business describes as growing overlap between crypto investors and people seeking returns linked to tangible assets. It also highlights a broader push by property and financial technology firms to connect digital asset ownership with regulated investment structures tied to physical projects.
"We are seeing increasing overlap between digital asset holders and investors looking for real-world exposure. Enabling that participation broadens the pool without changing the underlying asset," van der Merwe said.
Wider context
Tokenisation is the process of converting ownership interests in physical assets into digital tokens that can represent fractional holdings. Supporters say it can lower entry costs and widen participation in markets such as property, where direct ownership and development funding have traditionally required substantial capital.
In this case, each token is backed by real equity in a ring-fenced project vehicle, according to Propopoly. The platform is available only to New Zealand residents.
The Onehunga project targets the medium-density housing market at a time when developers and policymakers are looking for ways to add supply in urban areas while appealing to first-home and lower-budget buyers. Smaller townhouse schemes have become a common response to affordability pressures and planning settings that favour denser housing in established suburbs.
Propopoly is considering additional sites as it builds a pipeline beyond its first project. For now, the focus is on completing the current raise and moving the Onehunga development into construction, with investor returns still dependent on project execution and market conditions.