Renewable energy in DomaCom’s sights

19-Jul-2017

By Daniel Paperny

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Fractional investment platform DomaCom has set its sights on renewable energy investment by signalling its intention to crowdfund the purchase of a $4.3 million property in northern New South Wales, with investors expected to receive an annual 8 per cent yield from the rental income generated.

Located in the town of Casino, the project would look to raise funds to cover the acquisition of the land and development costs, after which specialist ‘biohub’ developer Utilitas would enter into a 10-year lease to operate the site as a facility for bioenergy, which involves the conversion of agricultural waste into electricity.

DomaCom chief executive Arthur Naoumidis welcomed the acquisition as an opportunity that brought together a socially responsible energy investment in rural Australia with expected healthy returns for investors as a result of the agreement.

“For a minimum investment of $2500, investors can participate in the development of a biohub project that will service the energy needs of the local sewage wastewater treatment plant, industries and communities in and around Casino, one of Australia’s major beef centres,” Naoumidis said.

“Utilitas has a target of 100 biohubs in 100 regional centres by 2025 and we are excited to be part of this energy project of the future.”

Utilitas had assessed more than 200 regional sites to date and developed three biohub projects in regional communities, DomaCom said in a statement.

Utilitas founding shareholder and chief executive Fiona Waterhouse noted the partnership with DomaCom was pivotal in helping fuel the capital raising needed to unlock the development of useful infrastructure across rural Australia.

“At a time of rising energy costs across Australia, Utilitas is offering an environmentally sound service to rural Australia,” Waterhouse said.

“These plans can safely and reliably capture and utilise energy and nutrients from this waste that typically would have to be disposed of at an economic and environmental cost.”

Naoumidis previously told financialobserver ¬that DomaCom was interested in opening up access to property investment solutions that gave Australian investors greater diversification and an increased ability to invest in areas with a social impact.

“As a platform, we want options that will be available to our clients, both investors and advisers, and that will be attractive from a yield perspective, an investment perspective, but also a socially responsible thematic,” he said.

“You’ll see in the next couple of weeks the launch of more thematics such as energy infrastructure and social infrastructure investment opportunities for regional Australia … it’s really an exciting time in terms of the things that crowdfunding can do.”

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