DomaCom signs distribution deal with US crowdfunder
Australian crowdfunder, DomaCom has signed an exclusive distribution deal with a New York-based real estate crowdfunding platform, Prodigy Network.
The deal aimed to expand investment opportunities for Australian investors wanting to invest in US real estate assets.
DomaCom's chief executive, Arthur Naoumidis, described the agreement as "the start of several overseas property crowdfunding opportunities for Australian investors".
"Enormous buying power exists in our large industry and retail superannuation funds and our growing A$600 billion self-managed superannuation fund (SMSF) market. There are vast sums of money sitting there, some of which must be looking for an opportunity to invest in global real estate markets," he said.
"Whilst crowdfunding is still a relatively new phenomenon in Australia it is gaining significant ground overseas.
"There are over 125 such businesses globally with the 2015 transactions estimated to be around US$2.5 billion, up from only US$20 million four years ago."
Prodigy Network, which focuses primarily on investments in collaborative workplaces and extended stay hotel developments in Manhattan, first initiated its track record in January 2016.
The company said it had managed to raise over $410 million of equity from the crowdfunding for their portfolio of assets which translated into US$750 million in property value.
Prodigy Network's vice president of client relations, Leonard Chinchay, said: "We are excited to be working with such senior management who share our common views on democratising real estate".
"We think partnering with DomaCom makes a lot of sense given their strong reputation and scalable distribution network in APAC."
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