DomaCom completes first transaction on HUB24

From

Arthur Naoumidis

Expanding our reach further into platforms, DomaCom has announced the first fractional property acquisition on investment and superannuation platform, HUB24.

“Increasing our footprint on platforms is validation that our fractional property fund is gaining wider acceptance and a place in portfolio construction that can fit into any structure”, said CEO, Arthur Naoumidis. It also demonstrates the flexibility of the model that platform and non-platform investors can invest in the same asset”.

“We’re very pleased to add HUB24 to the list of platforms coming on board with DomaCom and in this case it is GPS Wealth adviser clients who have completed a crowdfunding campaign to acquire two properties in Victoria and Queensland”.

In a similar way to managed accounts and portfolio models DomaCom’s innovative fractional property investment model is finding a home on platforms to meet the demand for greater access to property investment, making it easy for advisers to include this asset class in their service delivery.

The Fund enables advisers to allocate a precise amount and in doing so approach property as a portfolio strategy investing across multiple properties, property types and geographic locations, eliminating the single asset risk exposure that most property investors take.
The Fund allows investors to access property across residential, commercial and rural sectors.

From a liquidity perspective DomaCom property sub-funds have a 5 year term to expiry that triggers an exit if required or can be extended on a vote of unit holders. DomaCom also operate an online liquidity facility that enables investors to place their units for sale at any time which is a considerable advantage over the redemption process of unlisted property trusts.

In responding to the question of how advisers can “offer” real property, GPS Director, Rob McGregor, said, “We engaged professional property advisers to locate two residential properties in different states to give our clients some diversification. Soon to settle these two properties, valued at around $1m, will provide some diversification for the 9 investors who have come together in the Fund”.

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