DomaCom Limited (ASX: DCL) is the company which operates the DomaCom investment platform. The platform provides Self-Managed Superannuation Funds (SMSF) market, and other long-term investors with the opportunity to make investments, in a range of asset classes like property-related investments, debt securities etc. Investments in DomaCom platform are facilitated in the DomaCom Fund, which is a licensed managed Investment scheme registered with Australian Securities & Investments Commission (ASIC).
On 1st April 2019, the company announced that it has partnered with La Trobe Financial, to provide a credit facility to the property investors using DomaCom’s fractional property investment fund.
La Trobe Financial is a non-banking financial company (NBFC) which specialises in credit and wealth management, containing A$7 billion of Assets Under Management (AUM). It provides funding and investment solutions to a diverse range of institutional and retail customers. It is 80% owned by Blackstone, which is the world’s largest alternative asset manager with over US$472 billion of AUM worldwide. The company has also done many innovations in the non-bank sector, like creating the first private Reverse Mortgage (Seniors Loan) in 2003, launching the first hybrid wealth management-loan product P2C to assist first home buyers in 2013 etc.
La Trobe Financial has provided an initial amount of A$50 million facility, which will allow investors to acquire approximately A$100 million of leveraged property (residential, commercial and industrial property) through the DomaCom Fund. The leverage will be provided to investors and SMSFs up to 60% at a competitive rate of 5.99% per annum.
By enabling the use of lending when purchasing investment properties, which is an important addition to the DomaCom product offering, the company has been able to strongly position itself to almost triple its Funds Under Management to $150 million.
Mr Arthur Naoumidis, CEO of DomaCom stated that now financial advisers can leverage their clients’ investment properties in a few seconds, which is a major development for the Australian property investment market. Previously, the company had bought over 50 properties, that were without debt. Now, the company has finally introduced the debt through which it is able to offer advisers, ready access to competitive SMSF lending. The availability of $50 million debt facility has cleared the remaining obstacle for DomaCom. After many years, the company is finally well placed with the availability of debt and legal certainty, and it can now take the platform to financial advisers and the SMSF sector.
Mr Chris Andrews, Chief Investment Officer, of La Trobe Financial said that they were pleased to work with DomaCom, which would enable them to assist borrowers, to obtain the needed SMSF finance for property investment purposes.
On 1st February 2019, the company announced that it is going to start 6-month pilot with a Big 4 Bank.
The company’s stock traded flat during the day’s trading session and closed at A$0.125 as noted on 1st April 2019. The stock has delivered a return of 13.64% in the last one month, while the YTD return stands at a massive return of 108.33%.
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