Real estate fintech deal turns property into shares
A new fintech partnership will allow investors to ease their way into the market by acquiring a small stake in individual properties.Under the agreement, DomaCom will provide the back-end online book-build process and compliance for properties listed by Estate Baron.
DomaCom is a ‘fractional property investment’ platform that combines online property listing with online trading. Estate Baron is a crowd-investing site created to raise capital for opportunities in real estate.The partnership enables Estate Baron to connect smaller investors with real estate opportunities, according to co-founder Moresh Kokane.
DomaCom provides the expertise to ensure that those investors are properly serviced in a regulated environment, chief executive Arthur Naoumidis said.“Engaging with the new phenomena of property investment, crowdfunding is another first for DomaCom and further demonstrates the flexibility of our platform model,” he said.“Estate Baron are also breaking new ground as the first real estate equity crowdfunding site to provide investment property via a regulated product.”The fractional investment market allows home owners – principally retirees – to sell equity in their home.
DomaCom runs a managed investment fund that allows investors to register an interest in specific properties via a book-build process.
When a book build is complete, DomaCom purchases the property, places it in a sub-fund and issues the investors with units according to their investments.