Australia’s first retail land banking managed fund aimed at SMSF investors completes Rossmore acquisition

The Sydney investment management firm KSI Investments has successfully raised $6.4 million from investors using the DomaCom crowdfunding platform.

They have transacted on the first of two side by side parcels of land in the South-West Sydney suburb of Rossmore which is 5km from the new Badgery’s Creek airport for Sydney and 5km from the planned strategic regional centre at Leppington.

Robin Luo, CEO of KSI Investments says it was a significant milestone "not just for KSI Investments, but for all Australian property investors."

"We have successfully gathered together a group of likeminded investors interested in buying land and helped them transact on a prime piece of land in Sydney’s South-West growth corridor”. 

KSI Investments believe their key to success has been transparency.  

Endre Kollo, Investment Director of KSI Investments says unlike failed land banking schemes of the past, "we are a totally different proposition."

" We do not have complex structures involving many different companies and trusts, we do not borrow any money and we do not hide behind the veil of a wholesale fund status”.  

DomaCom CEO Arthur Naoumidis said DomaCom was delighted to be involved.

"We manage an ASIC registered retail managed investment fund under an Australian Financial Services Licence.

"This transaction strongly demonstrates the vision behind the DomaCom platform, as we’re helping investors pool money together to purchase quality land assets that would normally be the domain of institutional investors.” 

The 64 Devonshire Road property at Rossmore is the first in a series of planned acquisitions by KSI Investments.

Although the first land fund is now closed, the adjoining block of land is now open for investment through the second fund. 

The fund is able to accept investment from SMSF investors as well as private investors, companies and trusts with a minimum investment of $2,000 for 60 Devonshire Road, Rossmore (6.32 acres).

The site is expected to accommodate between 110 to 140 houses if rezoned residential which is anticipated to occur over the next 5 to 7 years.

DomaCom offers investors a liquidity facility that enables investors to trade units in the fund freely at any time, provided there is a matching buyer and seller before the eventual land sale.

The fund will incur a 2 per cent annual management fee and 20 per cent performance fee at the time of the sale of the land. 

The expected timeframe of investment is 5-7 years with maximum term of 10 years.