Darren: a Few years ago, DomaCom launched its fractional property investment model which was unique to the industry, the models now been developed a little bit further and with me today to discuss is DomaCom Chief Executive Arthur Naoumidis, welcome Arthur!
Arthur: Hey Darren, Good to be here
Darren: So you’ve developed some multi-property portfolios now can you tell me how does that work?
Arthur: Yeah after feedback from advisors what they really wanted was something they’re getting equities all the time which is an immediate diversification, a group of assets all in one go. So basically we’ve created the concept of a multi-portfolio bookbuild, so invested makes one bid say 100,000 and they get shares of five properties when we conclude it, so immediately they get to own a bit of five specific properties.
Darren: Now those properties I’m assuming are sourced right around the country?
Arthur: Yeah well as our sort of slogan says “Any Property Anywhere” so the properties are actually all across the East Coast, West Coast and going from ready to eventually. We’ll have ready commercial and eventually to include them you know other specialist assets.
Darren: Now obviously there’s a good diversification factor in there and that helps manage risk doesn’t it?
Arthur: Yeah as we all know the single biggest risk mitigation technique is spread out and don’t put all your eggs in one basket. In other words, diversify. So what this does is in one swoop, in one transaction investors get a spread of assets so the chance of anyone all properties being untenanted at once is practically zero, and so this is what protects investors returns and gives them the comfort that you know, their assets are you know diversified
Darren: As far as access to these portfolios you’re talking to some platform providers right now?
Arthur: Yes, as you know these things take time but we’ve got our first platform called ‘Managed Accounts’, it has put us on we’ve got the first two dealer groups looking to users. I’m also pleased to say I’ve got two other platforms very close and hopefully soon the whole market will use us.
Darren: So they’re ready to go now?
Arthur: Yes, ready to go, we’ve got about five different portfolios across Melbourne, Sydney and Brisbane, so you’re ready to go.
Darren: Okay fantastic Thanks for your time.
Arthur: Thank you Darren.