DomaCom hire AFL legend Kevin Sheedy as ambassador for farm project

DomaCom hire AFL legend Kevin Sheedy as ambassador for farm project
DomaCom hire AFL legend Kevin Sheedy as ambassador for farm project

The DomaCom fractional property investing platform has moved to expand into the rural property sector.

DomaCom's initial investment under its partnership with Cultivate Farms is Springview Eco Farm at Big Creek near Wagga Wagga.

It is a 65 hectare pig farm.
 
The ASX-listed company recently secured a partnership with rural start-up, Cultivate Farms.

Under the arrangement, Cultivate Farms will source appropriate properties from farmers looking to retire and match these to aspiring or next generation farmers.

DomaCom will provide the investment capital through its crowdfunding platform.

The AFL great and farming sector advocate Kevin Sheedy has come on board as ambassador.

“We need to encourage the next generation to stay on the land and build a future for our country," Kevin Sheedy said.

"Through crowdfunding all Australians can now invest into farming families and regional Australia’s future.

Some of the footy’s greatest players grew up kicking a Sherrin on the dairy farms, market gardens and sheep farms out the back of nowhere.

"I struggle to see where the next generation of farmers, and therefore, AFL players will come from if it is financially impossible to own a farm.”

"The idea behind this project is to enable young farming families to get their foot on a property they can farm commercially, while at the same time enabling a retiring farmer to sell down or sell out in order to retire," said Warren Gibson, sales and marketing manager at DomaCom.

"We are 50 per cent to closing our first property and through our partner, Sam Marwood of Cultivate Farms, have another 19 in the pipeline," he told The Australian Financial Review.

Each farm will be held in a separate DomaCom sub-fund with investors receiving a share of the rent.

They can also benefit from any capital growth through the trading of units in the fund or when the property is eventually sold and the fund wound up.

Funds typically have a five-year term and a targeted gross return of 5 per cent. The minimum investment is $2500.

Springview Eco-Farm, located in the Eastern Riverina area of southern NSW, a 2.5 hour drive from Canberra, is run by vendor, Pennie Scott, who will retain some equity via the DomaCom property sub-fund units.

The farm has an indicative value of $800,000 with a target amount of $400,000 being raised.
Its indicative capital growth is tipped as 6%* p.a. with a targeted rental return of 5%* p.a.

As DomaCom will be the landlord for Springview EcoFarm, a property manager will be appointed to manage the property including collecting the rent and future tenancy if or when required. 

The gross rent is targeted to be around 5% which should result in an approximate income return of 4% to investors after the 0.88% management fee, plus capital growth.

DomaCom is Australia's leading property crowdfunder. It allows anyone to invest a little or a lot in to property investment. 

They recently crowndfunded the first mortgage backed loan for a residential property in Melbourne.

 

Tags: 
Crowdfunding Domacom

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