DomaCom’s Crowdfunding Platform has been used by Sydney investment management firm, KSI Investments to raise $6.4 million from investors to complete an acquisition of land in the South-West Sydney suburb of Rossmore.
The two side-by-side parcels of land were located five kilometres from the new Badgery’s Creek airport for Sydney and about the same distance from the planned regional centre of Leppington, the firm said.
The Devonshire Road property at Rossmore was the first in a series of planned acquisitions by KSI Investments, with its first retail land banking managed fund aimed at self-managed superannuation fund (SMSF) investors being now closed but with the adjoining block of land still open for investment through the second fund.
The firms said the fund would accept investment from SMSF investors as well as private investors companies and trust with a minimum investment of $2,000.
According to KSI Investments, the acquisition was expected to accommodate between 110 to 140 houses if rezoned residential, which was anticipated to occur over the next five to seven years, however it warned that one of the key risks of this investment was if land was not rezoned and development application rejected.
KSI Investments’ chief executive, Robin Luo, said: “This is a significant milestone not just for KSI Investments, but for all Australian property investors.”
“We have successfully gather together a group of likeminded investors interested in buying land and helped them transact on a prime piece of land in Sydney’s South-West growth corridor.”
Arthur Naoumidis, chief executive of DomaCom which managed an Australian Securities and Investment Commission (SIC) registered retail managed investment fund under an Australian Financial Services Licence, said: “This transaction strongly demonstrates the vision behind the DomaCom platform, as we’re helping investors pool money together to purchase quality land assets that would normally be the domain of institutional investors”
