Property developer Mirvac Group has struck a deal with equity crowdsourcing platform VentureCrowd which will open two of its Sydney properties up to crowdfunded investment.
Signing a memorandum of understanding, the trial will enable eligible investors to build a portfolio of properties online from $100.
Property crowdfunding models have started to take off in Australia with the recent launch of BrickX and CrowdfundUP — two outfits which are offering real estate investment to the masses.
The model enables wholesale investors to diversify their property portfolio with smaller amounts of capital as they don’t have to purchase entire properties.
VentureCrowd CEO Jeremy Colless said VentureCrowd was expanding the platform from early stage tech startup investment to encapsulate the larger real estate market.
“The VentureCrowd platform has proven to be a compelling alternative capital raising solution for seed and later stage high-growth companies,” he said.
“We expect to see legislative changes in 2015 which will allow crowdfunding investment opportunities to be extended to retail investors, particularly as rising property prices make it more difficult for younger investors to enter the market.”
Mirvac Residential Development CEO John Carfi said he hopes by providing two apartments, one in Bondi and another at the company’s Harold Park development in Glebe, Mirvac will be in a position to “better understand the ins and outs of crowdfunding”.