DomaCom completed its first fractional property acquisition transaction via managedaccounts.com.au.
Undertaking the transaction on behalf of Sydney-based advisory group Benwest Investment Services, DomaCom chief executive Arthur Naoumidis said the firm is pleased to have proven how the fractional property model can work in a managed account structure.
"Ostensibly we will be able to introduce managedaccounts.com.au to the 41 AFSLs who have put the DomaCom Fund on their APL and to a similar number who have DomaCom on their radar to use. Nowhere else can financial advisers access bits of residential, rural or commercial property of their choice either in a managed account or on a traditional platform," Naoumidis said.
Chief executive of managedaccounts.com.au, David Heather, said the completion of the first transaction highlights the flexibility of the business model that now delivers $2 billion in managed accounts across Australia.
"Enabling Domacom's capability within our offer has satisfied increased demand for the inclusion of direct property exposure from a number of our advisory firm clients, particularly those working with self-managed super funds," Heather said.
Heather said that, until now, direct property had to be implemented external to a managed account solution and as a whole asset purchase, invariably involving debt.
"The combination of Domacom and managedaccounts.com.au enables the paperless acquisition of direct property, no different to any other asset in a managed account," Heather said.
Also commenting on the transaction, Benwest managing director Tony Bennett said: "With the A-REIT sector trading at stretched valuations, it makes eminent sense to have a spread of non-listed residential real estate in our portfolios to provide our clients with exposure to property without the risk of the A-REIT sector."