One of the questions commonly asked of syndication is how to sell a proportionate share. Most important to note is the fact that each Proportionate Title is fully transferable. The common misconception of the absence of a secondary market is frequently discussed. The secondary market is most effective and active in situations where properties have long lease terms, good tenants, are in a good location and are providing good cash yields. Liquidity in syndicate interests is very much linked to the performance of the underlying asset. Liquidity is not a problem related only to syndicates, rather, it is recognised as one of the fundamental characteristics of all classes of property. Syndication companies frequently sell proportionate shares in a secondary market. Should you wish to sell your proportionate share, a first point of contact is usually the scheme manager. An alternative option is a local real estate agent but of course, you may also sell the proportionate share independently.
A proportionate share is generally valued as per the most recent valuation of the property. In most cases this is undertaken annually. However the concept of willing seller and willing buyer should also be taken in to account. In effect the sale of a proportionate share should be treated as though selling any other type of property.
An investor has the right to sell a proportionate share at any time during the term of the scheme, subject to the requirements of the relevant ownership and management deed or deed of participation relating to the syndicate.
This means all outstanding amounts need to be paid by the subscriber and relevant anti-money laundering verification information needs to be provided for the prospective purchaser of the Proportionate Share.
Recently a new trading platform has been developed for the online exchange of proportionally owned assets - SYNDEX
The video below outlines how SYNDEX works.
For more information on SYNDEX you can contact firstname.lastname@example.org or visit their website: http://www.syndex.exchange/