Over the last ten years, there’s been a huge increase in the number of commercial property syndicates available to Australian investors. And for good reason: commercial property syndicates enable everyday investors to access the very highest quality investments.
This enables terrific benefits, including:
- Highly competitive returns, with 7%+ net per annum
- Affordable entry, with investing units from $50,000
- Reliable income, with quarterly rental disbursements direct debited to your account
- Low stress investing, with full management of the day-to-day operation of the investment included
- Reliable, fixed terms, usually of around 7 years, and
- Potential capital gain at the end of the investment term.
What is syndicated investing?
Syndicated investing is when a group of investors contribute some of their savings and co-invest with other investors and the manager of the syndicate to acquire and own a property for a period. In the same way that a company has shareholders, syndicates have unit holders, and just like shareholders receive dividends from profits, units holders receive disbursements from rental income.
Of course, this isn’t a new concept. Friends and family have been pooling their resources to buy properties for hundreds of years. The commercialisation of this co-investing process began in order to acquire larger and better property that individuals couldn’t buy outright on their own. In other words, syndication is the commercialisation of the co-investing process.
Syndication as a commercial venture was started in New York in the early 1920s by real estate developer Fred F. French. French built massive residential apartment blocks funded by hundreds of individual investors each contributing a small amount. You can reference him here https://therealdeal.com/2015/10/30/they-built-new-york-fred-f-french/. It’s quite an amazing story.
If you are interested in syndication you can let us know by filling in our “Enquire Here” form below.