DomaCom investors sign off on first global agriculture crowdfunding deal in Victoria's Western Districts

Crowd-funder DomaCom has 90 retail investors now holding a stake in a property in Victoria’s prime Western Districts pastoral land.

The 150-hectare property, Doyles is just outside Casterton near the South Australian border.

It is heartland prime beef cattle region with 11 paddocks of rolling high country fronting Lower Coleraine Road.

Prior to the contract to purchase the property the fund secured a local operator to be the tenant.

DomaCom’s head of property Jason Bennett said the purchased delivered a packaged opportunity to investors to enable them to invest into the rural sector.

"It is expected that investors will receive an estimated combined income and capital return of 10% per annum on their investment, based on historic returns, which is a significant improvement on bank interest," he said.

"More importantly they will have the ability to participate in the strong capital growth currently being experienced in the rural sector."

DomaCom CEO Arthur Naoumidis says the group is “enormously proud” to sign off on its first agriculture crowdfunding project, which has taken about two months to bed down.

“It’s our understanding that this is the first crowdfunding project for agriculture assets anywhere in the world.

"We knew from the Kidman bid that there was a thirst by ‘mum-and-dad’ investors to acquire agriculture assets, and we have been looking at other properties for quite some time.

"We have already more investors on our books looking to invest in this asset class, so we are confident that the Doyles deal is just the first of many.”

Elders’ Hamilton-based David Peardon, who handled the sale, said the first successful crowdfunding exercise to allow retail investors to collectively acquire an agriculture asset was an “exciting development” for the industry.

You can download an eBook from DomaCom on new smart ways to invest in agriculture, here.