DomaCom in talks with retail super fund
Fractional property investment platform, DomaCom, has announced it is in discussions with a retail superannuation fund, which is likely to add the DomaCom Kidman Station to one of its funds.
DomaCom chief executive, Arthur Naoumidis, also announced the company had increased the minimum raising to $6 million with the corresponding underwriting amount also increasing to $6 million to ensure the minimum was fully underwritten.
Naomidis said adding the property to the fund could successfully raise the capital needed to acquire the land of S. Kidman and Company.
"There can, however, be no guarantee that this project will complete," he said.
DomaCom announced in July it had moved to list on the Australian Securities Exchange (ASX) with the aim of raising $10 million, with a minimum $5 million from investors.
In May, the crowd funder united with Lloyds Business Brokers to launch a $370 million bid for S. Kidman and Co, after Treasurer Scott Morrison rejected a bid by Chinese-based Dakang Australia Holdings, and Shanghai Pengxin Group, citing a national interest clause in the Foreign Investment Act.
DomaCom was also in talks with a national charity that had a multi-billion dollar land bank, including land holding bequeathed to charity. The intention was to use the DomaCom platform to let investors partner with the charity to convert the bequeathed land to affordable housing.
However, the company once again warned that while it was likely the project would complete, there was no guarantee that it would do so.
It also said it had no intentions at this stage to raise further capital in the next two years, stating it had enough capital to execute its objectives.
The closing date of the offer remained at 19 August.
AUTHOR
Malavika Santhebennur
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