Arthur Naoumidis
The fractional investment platform provider, DomaCom, has enjoyed a growth spurt since 1 April 2020 with Funds under Management (FUM) rising 10.4% to $70.9 million.
Investments in the DFS Pooled Mortgage Sub-Fund, the Badgery’s Creek land bank project and its first Rent-to-Own property syndication have underpinned the growth.
DomaCom CEO Arthur Naoumidis said: “It is pleasing to see such significant FUM growth during this challenging time of significant market dislocation.
Our FUM growth demonstrates the robustness of DomaCom’s business model and proves that even during the COVID19 pandemic, there are still segments of the market that attract investor attention.
At the same time, we continue to develop new products to help drive future FUM growth.”
Managed by DFS Portfolio Solutions, the Pooled Mortgage Sub-Fund allows direct mortgage investments to be included in the models that DFS delivers to financial advisers across multiple platforms.
The Badgery’s Creek land bank project is DomaCom’s fourth land bank project in this area and includes both equity and debt syndications. The property to be bought is farmland that will be rented out with the long-term objective being capital appreciation due to the impact of Sydney’s second airport at Badgery’s Creek.
DomaCom’s first Rent-to-own (RTO) property syndication – a $447.000 apartment in the inner-city Melbourne suburb of Moonee Ponds – is well underway with property due diligence in progress.
The developer’s distribution margin will be split between investors and tenant. The key element of the RTO initiative is that the tenant will acquire ownership interest in the sub-fund that owns the apartment by simply paying rent and maintaining the property.