DomaCom obtains $100 million lending facility

DomaCom has announced that its fund has been granted an initial lending line of $100 million which, according to the company, will help it acquire up to $250 million in property.

DomaCom’s chief executive, Arthur Naoumidis, said that this would allow advisers to select the debt level they were seeking for a particular property investment and that the DomaCom platform would manage the loan application process.

He said the loans were non-recourse and would be secured against the properties and taken out by the fund, while investors and advisers would not be required to complete any loan application or provide servicing information.

Related News:

“We have been seeking a default lending solution for our platform for three years as it is clear that advisers are seeking to use debt to deliver long-term tax-effective returns for their clients,” he said.

Naoumidis stressed that the fund had a conservative loan-to-value ratio (LVR) of no more than 60 per cent and the sub-funds holding the property and related loan must be positively geared, which meant the rental income should cover all expenses including fees and loan payments.

“In an environment where obtaining investment loans is becoming more difficult, we believe a leveraged property investment with a relatively low LVR that is positively geared will be attractive to financial advisers,” he added.

The firm also said that it was in discussion with a number of banks about providing additional lending facilities that would provide further choice to financial advisers.




Recommended for you

Author

Comments

Add new comment