An opportunity to invest in the affordable housing sector through the DomaCom Fund that is driven strongly by an ageing population who are ‘downsizing and relocating’ for an affordable lifestyle.
Targeting a 15% annualised return on the completed Project, with an estimated ongoing rental income of 8% p.a.*
*Please note that this is an estimate only based on an independent assessment of the value of the land and net rental return assuming full occupancy. This cannot be considered as a guarantee of your investment performance
About Akuna CobramDownload Brochure
Akuna Cobram is developing and managing a portfolio of resort-style residential retirement communities in regional Victoria for the over 55’s, commencing with a ‘greenfield’ site in Cobram.
The proposition is part of a growing trend of affordable housing options targeted at the baby-boomer generation moving into retirement. The market for retirement housing is significant with 6 million Australians over 55 years, most of whom are retired or currently transitioning to retirement. Affordability is critical, as 71% of Australians over the age of 65 have no superannuation**.
The Project will develop all of the infrastructure, houses and community facilities required to operate the lifestyle community. The community will be developed on a Residential Land-Lease Community (RLLC) model, where the resident owns the house and leases the land that it is situated on.
The individual home sites will be offered on a 49-year leasehold to residents, who will then lease the site from Perpetual*** as the responsible entity of the DomaCom Fund, who will offer units in a sub-fund of DomaCom to investors.
This approach makes home ownership more affordable for residents because:
- No stamp duty on home purchase nor annual council rates (as the land component will be leasehold not freehold); and
- One all-encompassing weekly rental payment that will cover all community outgoings apart from residents’ utility bills.
The Project is aiming to raise a total of AU$6 million. There will be no debt raised.
Please note that whilst the total investment required will exceed AU$6 million, the project will be completed in several stages (so the capital received from initial residents will also be used toward the project completion).
**Source: Australian Bureau of Statistics released August 2013 – ABS 6554.0 – Household Wealth and Wealth Distribution Australian Bureau of Statistics released August 2014 – 64610 Residential Property Price Indexes: Eight Capital Cities, June 2014 *** Perpetual is Perpetual Trust Services Limited ABN 48 000 142 049 AFSL No. 236648
The proposed Akuna lifestyle community site is located on the Victorian/NSW border, in the Murray River township of Cobram approximately 250 km or a 3 hour drive north of Melbourne.
Cobram, along with neighbouring Murray River towns, is a highly popular and growing tourism and retirement destination for many Melbournians.
The Akuna site is located within the established residential area of the Cobram township on the west side of Campbell Road, and is only a short drive from Cobram’s main shopping precinct. The entrance to the site is directly opposite the RACV Club Cobram, one of the most popular tourist resorts in the region.
The Akuna site of 8.2 hectares has an approved development plan issued by the Shire of Moira for 148 home sites and community facilities including clubhouse, sports centre, pool and bowling green.
Investment Highlights for a sub-fund in the DomaCom Fund that is intended to acquire the property
Please note that the return figures below are estimated returns only, and cannot be considered as a guarantee of your investment performance.
|The land||The Akuna site comprises of 8.2 hectares, with an approved development plan issued by the Shire of Moira for 148 home sites and community facilities including clubhouse, sports centre, pool and bowling green.
|Target crowdfunding raise||AU$6 million:
|Estimated return on investment||Building Phase: During this time it is expected that investors in the Akuna sub-fund of the DomaCom Fund may not receive any income distributions, and the return will be primarily by way of expected increases in the unit price of the investment holdings. Unit prices will be reviewed regularly through the building phase by periodic re-valuation.
Completion Phase: Upon completion and full occupancy, the investors in the Akuna sub-fund of the DomaCom Fund will receive a monthly net rental return. It is estimated that after all expenses the rental income will equate to approximately 8% p.a. on the completed capital value.
|Investment term||There are no withdrawal rights from a sub-fund until it is terminated, however the DomaCom Fund provides a liquidity solution. This solution has not previously been available to the property sector.
Please refer to the DomaCom Fund Product Disclosure Statement (PDS) for more information.
Investors are encouraged to submit their Application Form as soon as possible by clicking on the Apply Now button below.
Summary of Investment Opportunity
Through the DomaCom Fund, Akuna is offering investors the opportunity to purchase units in a sub-fund that will acquire ownership of the land component for the development of its Cobram community, with the aim to provide investors high yielding returns from both development and ongoing land-rental activities.
Affordable retirement accommodation via Residential Land-Lease Community (RLLC) living separates the ownership of the land from ownership of the house, freeing up capital for the homeowner whilst providing the land owner with secure ongoing rental income from the land.
Lifestyle community living is driven strongly by an ageing population prepared to downsize and relocate to achieve an affordable lifestyle. Akuna will develop and lease the land, construct and sell houses and manage the community.
If you would like to invest in the Akuna Cobram site through the DomaCom Fund, you can join this crowdfunding campaign by completing the application and lodging your investment funds through this General Advice page.
Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS). For a copy of the current PDS, please click here or call your financial adviser.
When you have lodged your bid and the campaign is filled, you will receive a Supplementary Product Disclosure Statement (SPDS) outlining the specific offer to invest in the Akuna sub-fund, which will contain all the information required for you to make a decision. You are not bound to proceed with your bid amount for a campaign in the Akuna sub-fund of the DomaCom Fund until you accept the offer contained in the SPDS (which will include the specific details for the properties).
If you are new to DomaCom, click on the Apply button below to begin your application.
If you are an existing DomaCom Fund investor, you can login to access your account and all the other public crowdfunding campaigns by clicking the Investor Login button below.
General Advice Warning
This information is general advice only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Accordingly, before acting on the information provided you must consider the appropriateness of the information, in the light of your own objectives, financial situation or needs. If you wish to acquire a financial product within the DomaCom Fund offering, you should first obtain a copy of, read and consider, the PDS before making any decision. A copy of that PDS is available at http://www.domacom.com.au/the-domacom-fund/product-disclosure-statement/ or by calling your financial adviser.
This material has been prepared by DomaCom Australia Limited ACN 153 951 770 the holder of an Australian Financial Services Licence No. 444365. The information given is in summary form and DomaCom does not warrant the accuracy, currency or completeness of any information contained in the presentation. Forward looking statements may be contained in this material, including but not limited to statements regarding DomaCom’s belief or expectations in respect of its business, market conditions, results of financial operations and risk strategies. DomaCom has taken due care in preparing this information, however actual results, performance or events to differ materially from those expressed or implied. DomaCom undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation, subject to disclosure requirements applicable to DomaCom. Past performance is not a reliable indication of future performance. Any potential investors or investors are warned not to place reliance on such statements but to proceed to make an investment decision based on their own independent research and independent advice. The material in this document, is general information only and is not intended and should not be considered as constituting advice, a recommendation or an offer or solicitation to investors, or potential investors, in relation to purchasing or acquiring any securities or other financial products and does not take into account your personal investment objectives, financial situation or needs. If you are considering making an investment and before acting upon any information in this newsletter, you should read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au, or by phoning 1300 365 930 and you should consider the suitability of this investment, having regard to your personal investment objectives, financial situation or needs. You should also seek independent financial advice.