November 2016 :: Market Updates
Syndication An Alternative To Direct Ownership
Syndication an Alternative to Direct Ownership
COMMERCIAL PROPERTY SYNDICATION AN ALTERNATIVE TO DIRECT PROPERTY OWNERSHIP.
At Rutherfords we strive to offer our clients a comprehensive Property service, as selling agents, property managers and advisors.
In recent years we have observed a growing level of interest amongst our clients for “Participating” in Syndicated commercial property investment. Some of the attractive characteristics of syndicated investment include:
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Quality of Assets – Investors have the opportunity to participate in the ownership of premium “A Grade” property assets that may otherwise be out of the reach of an individual investor. Investment parcels usually range from $200,000 to $1 million.
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High Income yields with monthly income distributions –commonly greater than 8.5% p.a. resulting from the Manager’s expertise in selection and management of the Syndicate’s assets. It is also common for a significant percentage of investors’ income to be “tax advantaged” (see your taxation advisor for an explanation.)
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Security – Investing a smaller amount in one or more Syndicates provides investors with the opportunity for greater diversification in comparison to investment in a single asset. Investment risk is further reduced as a consequence of the Manager’s Thorough Due Diligence process prior to committing to the purchase of each asset.
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Opportunity for Capital Growth – reflecting the Manager’s expertise in selecting and managing the property and the tenants to maximum benefit.
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Liquidity –Syndicates usually have a fixed life of 5 to 7 years, with many Managers offering a secondary market in case of need and guaranteeing liquidity after 5 years.
This bulletin is provided by way of information for interested parties, and should not be read as advice or a recommendation to invest in this class of assets. Investors should always seek independent professional advice.
