Fractional investing platform DomaCom expands into rural property

ASX-listed DomaCom has taken its fractional property investing platform to the bush after tying up 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 with DomaCom providing the investment capital through its crowdfunding platform.

To help get the project off the ground, AFL great and farming sector advocate Kevin Sheedy has come on board as ambassador.

“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 said.

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 a targeted gross return of 5 per cent. The minimum investment is $2500.

The farm is then rented to a young farming family who may or may not also be investors in the fund.

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Source: Fractional investing platform DomaCom expands into rural property | afr.com