Super fund could join DomaCom Kidman bid

16-Aug-2016

By Sarah Kendell

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Fractional property investing platform DomaCom has announced it is currently in discussions with a retail superannuation fund to join its bid for the S Kidman and Company station, which could provide the scale needed for a successful purchase of the agricultural land.

Announcing the company had increased the minimum amount for its capital raising, which is active until 19 August, to $6 million, DomaCom chief executive Arthur Naoumidis confirmed talks were ongoing between DomaCom and the fund in question around the Kidman transaction.

“The discussions have progressed to the point that the company believes the retail fund is likely to add the DomaCom Kidman Station to one of their funds, with the potential to successfully raise the capital to acquire the land component of S Kidman and Company,” Naoumidis said.

“There can, however, be no guarantee that this project will complete.”

In May, the group announced it had joined forces with Lloyds Business Brokers to launch a $370 million bid for Kidman station, following Treasurer Scott Morrison’s rejection of an offer from Chinese-backed consortium Dakang Australia after the government ruled the station should remain in local hands.

A successful bid would see DomaCom investors owning the underlying agricultural land, valued at $210 million, while the $160 million operating businesses associated with the station would be purchased separately.

In addition to the progression of the Kidman bid, Naoumidis said the group was also in discussions with a national charity to convert a multi-million-dollar bequeathed land holding into affordable housing.

“We feel this initiative may appeal to investors also looking for an ethically and socially responsible investment,” he said.

The company confirmed that with the $6 million minimum raising, it would have sufficient capital to carry out all its current stated objectives and would not need to raise further capital for two years.

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