Crowdfunder DomaCom has announced a deal it made with an SMA model manager, which is looking to offer direct property investments.
In a statement yesterday, DomaCom said it has signed a “heads of agreement” with DFS Portfolio Solutions.
DFS will use the DomaCom fund to deliver direct property investments and as an additional diversifying asset class across its model portfolios. It expects to initially allocate $25 million to the DomaCom fund with more to follow, the statement said.
DomaCom chief executive Arthur Naoumidis said, “This is a first for our group and demonstrates that direct property can be included in an investment portfolio as part of an overall asset allocation strategy by investment model managers.
“Including property within an asset allocation model is a core element of the DomaCom business model that we see as being a major driver of the growth in the funds under management (FUM) of the DomaCom fund.”
DFS principal and head of research Stephen Romic said DFS Portfolio Solutions would “initially seek commercial, industrial and retail property to deliver a higher yielding asset class, and is working to identify suitable property advisers to source appropriate real assets for the offering”.
Mr Romic also said that the DomaCom platform will allow DFS Portfolio Solutions to efficiently allocate to and manage property and other direct assets on behalf of its clients.
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