DomaCom has announced it signed off on its first agriculture crowdfunding deal, giving 90 retail investors a stake in a property in Victoria’s Western District.
The company announced this week that it has finalised a contract to purchase the 150-hectare property known as Doyles, which sits outside of Casterton near the South Australian border.
Prior to the purchase, DomaCom secured a tenant who will use the property to run beef cattle. Investors will receive an estimated combined income and capital return of 10 per cent per annum, the statement said.
“The identification of good operators to work with in the leasing of the property was key to the transaction,” said DomaCom head of property Jason Bennett.
“We are striving to deliver a packaged opportunity to investors to enable them to invest into the rural sector through our platform.”
DomaCom chief executive Arthur Naoumidis said the group is “enormously proud” to sign off on its first agriculture project, which took two months to finalise.
“It’s our understanding that this is the first crowdfunding project for agriculture assets anywhere in the world. We knew from the Kidman bid that there was a thirst by ‘mum-and-dad’ investors to acquire agriculture assets, and we have been looking at other properties for quite some time," Mr Naoumidis said.
“People are motivated by a desire to keep prime rural land in Australian hands, as well as the opportunity for steady yield and capital gain. We have already more investors on our books looking to invest in this asset class, so we are confident that the Doyles deal is just the first of many.”
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