Fractional property investment platform DomaCom has successfully completed its first property acquisition for an advisory group through managed account provider, managedaccounts.com.au, demonstrating an access advantage for advisory groups.
The transaction was completed for Sydney-based Benwest Investment Services.
“We are very pleased to have proven how the fractional property model can work in a managed account structure,” DomaCom chief executive Arthur Naoumidis said today.
“Managedaccounts.com.au is a mainstream provider and the first to offer real property within a managed account structure in Australia.
“Ostensibly, we will be able to introduce managedaccounts.com.au to the 41 Australian financial services licensees who have put the DomaCom Fund on their approved product list 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 traditional platform.”
Managedaccounts.com.au chief executive David Heather said the completion of this first transaction highlighted the flexibility of the business model now used to deliver $2 billion 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,” Heather noted.
“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 the two businesses] enables the paperless acquisition of direct property, no different to any other asset in a managed account.”
Benwest managing director Tony Bennett said that with the Australian real estate investment trust (AREIT) sector trading at stretched valuations, it made eminent sense to have a spread of non-listed residential real estate in the advisory’s portfolios to provide its clients with exposure to property without the risk of AREITs.