Highclere Farm the latest opportunity in Next Generation Farmer Project from DomaCom
DomaCom's Next Generation Farmers Strategy is syndicating the partial acquisition of quality agricultural properties from retiring farmers to enable the next generation to become co-farmers.
The project enables DomaCom investors to have an interest in an agricultural property which will be leased to the retiring and next generation farmer.
The initial investment under its partnership with Cultivate Farms was the Springview Eco Farm at Big Creek near Wagga Wagga, a 65 hectare pig farm.
Each farm is 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 the minimum investment is $2500.
The AFL great and farming sector advocate Kevin Sheedy is the project 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."
He added, "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.
The project has a long term target return of 10% p.a. comprised of approximately 6% of capital growth and up to 4% rental income.
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.
DomaCom is Australia's leading property crowdfunder. It allows anyone to invest a little or a lot in to property investment.