Platform provider DomaCom has launched its much-anticipated fractional property investment product, giving financial advisers and clients access to more than 18,000 properties.
The fund received a product authority from ASIC before Christmas, which included the necessary ASIC reliefs to facilitate the unique MIS sub-fund structure of the DomaCom Fund. DomaCom has also received an AFSL from ASIC, with permission to create a market enabling DomaCom’s online liquidity facility where investors can sell their individual property units. Perpetual is acting as the responsible entity and custodian of the DomaCom Fund. According to DomaCom, the fund will give investors the flexibility to invest in their choice of property at the amount they wish to invest. This is achieved by using a book build process that is applied across multiple properties. DomaCom said this offers investors diversification across different property types and geographic locations. Liquidity is provided via DomaCom’s online facility, which matches buyers and sellers. DomaCom said the unique structure of the fund eliminates the common redemption process that can result in funds being frozen due to a lack of cash in the fund. The fractional model also has significant potential for SMSFs, since SMSF account balances are often low in comparison to high property prices. The DomaCom cash pool is held in an ANZ bank account that offers a high margin over the daily cash rate with daily liquidity, said DomaCom. DomaCom chief executive Arthur Naoumidis said investors will have the option of investing in residential, commercial and industrial properties.
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