DomaCom recently completed its first fractional property acquisition transaction for Sydney-based advisory group Benwest Investment Services through managedaccounts.com.au, one of Australia’s leading managed account providers.
“We are very pleased to have proven how the fractional property model can work in a managed account structure. managedaccounts.com.au is a mainstream provider and the first to offer real property within a managed account structure within Australia”, said DomaCom CEO, Arthur Naoumidis.
“Ostensibly we will be able to introduce managedaccounts.com.au to the 41 AFSLs who have put the DomaCom Fund on their APL and to a similar number who have DomaCom on their radar to use. Nowhere else can financial advisers access bits of residential, rural or commercial property of their choice either in a managed account or on a traditional platform”, he said.
DomaCom says that its unique fund is the only way to satisfy the property asset allocation conundrum, which poses different issues for everyone.
For managedaccounts.com.au CEO, David Heather, the completion of this first transaction again highlights the flexibility of the business model now used by to deliver $2bn in managed accounts to a number of leading advisory firms across the country.
“Enabling Domacom’s capability within our offer has satisfied increased demand for the inclusion of direct property exposure from a number of our advisory firm clients, particularly those working with SMSFs. Until the DomaCom model, direct property was something that had to be implemented external to the managed account solution and as a whole asset purchase which invariably involved debt. The combination of Domacom and managedaccounts.com.au enables the paperless acquisition of direct property, no different to any other asset in a managed account”, he said.
Managing Director of Benwest Tony Bennett commented that “With the A-REIT sector trading at stretched valuations, it makes eminent sense to have a spread of non-listed residential real estate in our portfolios to provide our clients with exposure to property without the risk of the A-REIT sector”.
SOURCE: Domacom
