June 2016

Kidman Station update

DomaCom’s crowdfunding campaign to acquire the Kidman Station is all systems go.

If we are successful with our bid to secure this iconic property, it will not only be the largest crowdfunding exercise in the world but will stand as a milestone to what we should and can do to retain ownership of our significant agricultural heritage in Australian hands and create significant other crowdfunded investments.

We lodged an indicative non-binding bid on Thursday, May 26 to signal our serious intention to acquire this blue ribbon Australian pastoral land representing a slice of Australian outback history.

Initial investigations indicate a 3.9% gross yield (3.02% net) on the land is achievable, in addition to any future capital gain which investors will also share in, in proportion to their investment. A recent analysis (May 2016) of Australian Farmland Values indicated that the national median farmland price increased by 5.3% in 2015 and over a 20-year period by 5.8% p.a, indicating the total return to investors could average 9.7% gross*.

Lloyds Business Brokers is our confirmed ‘sponsor’ for seeking investors to acquire the operating business in a separate transaction to the land holding. It is anticipated that the operating business will be acquired concurrently with the land.

Investment TargetFollowing our due diligence, the land component, which is being crowdfunded via the DomaCom Fund, is $210 Million and the operational business is valued at approximately $160 Million.

A national radio and television advertising campaign has commenced, and we seek your support to help spread the word to your clients, your friends and family.  This presents an opportunity to invest in 100,000km2 of Australian rural landholdings

For more information on our Kidman Station crowdfunding campaign, visit www.buykidman.com.au. You’ll be able to access our brochure, Product Disclosure Statement (PDS) and Frequently Asked Questions.

*Source: Rural Bank’s Ag Answers Report – Australian Farmland Values 2015. Rural Bank is a subsidiary of Bendigo and Adelaide Bank.

 

Equity Release Update

DomaCom is pleased to advise that it is working on coordinating some consumer testing as required by ASIC to progress the equity release product. This product will help advisers engage new segments of the market.  It may suit property owners seeking to extract equity to help fund retirement and maintaining their lifestyle.  As advised earlier, the product is still in the process of being reviewed by ASIC and is not likely to be available until 4th Quarter of 2016, subject to ASIC review.

 

New version of DomaCom platform for advisers

We have been busy with a number of enhancements to the DomaCom platform.  In our new V3 environment, advisers will see the following improvements:

  • Ability for your investor clients to complete application forms online and sign electronically – they will then receive an email containing a PIN number to progress their application to a completed stage;
  • Ability for you, as the adviser, to complete application forms online for your clients and simply ask them to sign electronically – again, similar to the above process;
  • Ability to raise funds in a bookbuild and identify the property later – this is to ensure that you’ve raised sufficient funds to cover the purchase price and expenses;
  • Addition of multi property bookbuilds functionality – this has been developed to cater for our multi-property model portfolios; and
  • Ability to allocate money across multiple bookbuilds using our ‘book of books’ feature.

All these new features are available immediately.  If you have any questions on these enhancements, please email clientservices@domacom.com.au

Empower Wealth’s residential portfolio models

We often hear the perils of putting all your funds into one basket.  In the case of property, we believe you can remove the concentration risk that a single property investment presents by securing an asset allocation strategy across a diversified portfolio of residential properties that suits your client’s circumstances and risk profile.

Empower Wealth selects properties for a range of income and growth residential portfolio models. Empower Wealth’s founder and CEO, Ben Kingsley, will build investment portfolios based on strategies for income and growth, and select investment grade properties to suit.

With as little as $2,500, you can direct your client’s funds into an interest bearing Cash account that, after a 14-day cooling off period, can be applied to the purchase of one or more residential properties as and when they are identified by our professional property advisers.

Our education videos on Empower Wealth’s portfolio models will be available from the website soon under https://domacom.com.au/public-crowdfunding-campaigns/model-portfolios/empower-wealth-residential-portfolio-models/.  Stay tuned.

 

Spring Financial Group’s residential portfolio models

In addition to Empower Wealth’s residential portfolio models, Spring Financial Group is another provider that offers multi-property residential portfolios through the DomaCom Fund.

The portfolios offer a direct property solution with immediate diversification across multiple properties, developers and locations.

The models available are:

Growth Cities Portfolio

  • Market/s: Melbourne and Brisbane
  • Number of properties: Total of 10, consisting of 5 x 1-bed and 5 x 2-bed apartments
  • Portfolio Value: $5,002,500 (excluding stamp duty)
  • Suggested investment size: $25,000 to $500,000

Spring FG’s Growth Cities Portfolio consists of ten (10) luxurious apartments across nine landmark projects by the leading Melbourne and Brisbane developers Devine Limited, BPM Group, Metro Property Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $25,000 and up to $500,000 to invest in mind.

Melbourne City Portfolio

  • Market/s: Melbourne
  • Number of properties: Total 5, consisting of 3 x 1-bed and 2 x 2-bed apartments
  • Portfolio Value: $2,549,500 (excluding stamp duty)
  • Suggested investment size: $10,000 to $100,000

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

Brisbane City Portfolio

  • Market/s: Brisbane
  • Number of properties: Total 5, consisting of 4 x 1-bed and 1 x 2-bed apartments
  • Portfolio Value: $2,296,500 (excluding stamp duty)
  • Suggested investment size: $10,000 to $100,000

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

Contact your local Business Development manager for more information on Spring FG’s residential portfolio models.

 

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.