DomaCom signs distribution deal with US crowdfunder
Australian crowdfunder, DomaCom has signed an exclusive distribution deal with a New York-based real estate crowdfunding platform, Prodigy Network.
The deal aimed to expand investment opportunities for Australian investors wanting to invest in US real estate assets.
DomaCom's chief executive, Arthur Naoumidis, described the agreement as "the start of several overseas property crowdfunding opportunities for Australian investors".
"Enormous buying power exists in our large industry and retail superannuation funds and our growing A$600 billion self-managed superannuation fund (SMSF) market. There are vast sums of money sitting there, some of which must be looking for an opportunity to invest in global real estate markets," he said.
"Whilst crowdfunding is still a relatively new phenomenon in Australia it is gaining significant ground overseas.
"There are over 125 such businesses globally with the 2015 transactions estimated to be around US$2.5 billion, up from only US$20 million four years ago."
Prodigy Network, which focuses primarily on investments in collaborative workplaces and extended stay hotel developments in Manhattan, first initiated its track record in January 2016.
The company said it had managed to raise over $410 million of equity from the crowdfunding for their portfolio of assets which translated into US$750 million in property value.
Prodigy Network's vice president of client relations, Leonard Chinchay, said: "We are excited to be working with such senior management who share our common views on democratising real estate".
"We think partnering with DomaCom makes a lot of sense given their strong reputation and scalable distribution network in APAC."
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
