BGL joins DomaCom in fight for Kidman
Thursday, 21 January 2016 12:51pm

Fractional property investment fund DomaCom has secured a new partner in its crowd-funding bid to acquire the Kidman Station pastoral holdings.

BGL Corporate Solutions, a cloud-based SMSF administration solution, is backing DomaCom's Kidman Station crowd-funding initiative, informing their clients about the potential acquisition and the opportunity to invest in an iconic Australian pastoral business.

BGL partner, SelfWealth, an online peer-to-peer investment community, is also behind the bid.

SelfWealth allows BGL Corporate Solutions' SMSF clients to compare their fund's performance against the top 200 funds, meaning they can compare their fund against their peers and professional fund managers.

"Coming in to the Kidman bidding six months late means a successful bid is a long shot, but with partners such as BGL and SelfWealth believing in our model and helping to promote it we may actually succeed," DomaCom chief executive Arthur Naoumidis said.

"If we do it will be the world's largest successful crowd-funding campaign, quite fitting for the world's largest cattle property."

BGL Corporate Solutions managing director, Ron Lesh, said: "We support innovation and DomaCom is leading the way in developing a solution that breaks down high-cost assets such as property into small chunks to give investors access to assets they normally could not buy. The potential acquisition of Kidman Station demonstrates the scalability of the DomaCom model."

DomaCom said about 4000 people had expressed interest to invest up to $55 million in the bid to secure the vast pastoral holdings that comprise 17 properties and three supporting properties in breeding, feedlot and cropping. He said there is a clear appetite for rural property and many expressed their support for other agricultural acquisitions if the Kidman bid did not succeed.

The new partnership follows the recent news that Shaw and Partners has partnered DomaCom to help split the Kidman group of properties.

S. Kidman and Company came to market several months ago and was acquired by Chinese interests in October.  But the sale was blocked by the Foreign Investment Review Board (FIRB).

As DomaCom is only interested in the land, an operator is being sought to manage the business, stock, plant and equipment, and Shaw and Partners has agreed to provide advice about how to achieve the best outcome for a new Kidman operating entity. This could involve an IPO, a joint venture with a listed company or a separate transaction.

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