DomaCom, Spring expand partnership

22-Sep-2015

By Elizabeth Somerville

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DomaCom has expanded its partnership with Spring Financial Group to offer multi-property residential portfolios via DomaCom’s fractional investment platform, something it said it would look to do for other groups as well.

The fractional property investment firm had previously been added to Spring’s approved product list in June, however, this latest step would see Spring offer multi-property book build functionality in an industry first, DomaCom chief executive Arthur Naoumidis told financialobserver.

“Spring highlighted the need for such a service due to the volume of property [interest it received],” Naoumidis said.

“Now they have structured model portfolios around us and we have developed new technology to support Spring’s process.

“We’ve taken the model portfolio concept from the equity world and have [applied] it into the property world.”

Previously, DomaCom had only offered single property book builds, however, the multi-property book builds would provide immediate diversification across multiple properties and locations, he said.

“Having built it, what we’re finding is every dealer group loves the concept of [multi-property] portfolios,” he said.

“Advisers are not used to getting clients to go into [only] one property or one asset.

“This model portfolio is the bit that quite a lot of advisers have been waiting for.”

The multi-property portfolios prepared by Spring were available from as little as $10,000 and could give investors exposure to up to five properties across different geographic locations.

Further, the model portfolios on offer as part of the first tranche comprised almost $25 million in high-quality residential assets located in inner-city Melbourne and Brisbane.

In addition, DomaCom had several other multi-property book builds about to start with other dealer groups who also noted the value instant diversification across multiple properties offered to investors, Naoumidis said.

Commenting on the release of direct property portfolios, Spring chief executive Keith Cullen said the group was excited to offer that opportunity to all investors because for the first time a diversified portfolio of real property was available in much the same way as a model portfolio of equities.

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