Property Syndication

Delivering returns to customers from high performing property assets under management

Be among the first to hear about new syndication offerings

Raising Capital Since 2010 NZ Wide
Investor Equity $500 Million
Property Sales $1 Billion
Property Syndication

A property syndicate is a direct property investment where a number of investors pool their capital to purchase real estate, which forms the syndicate or scheme. Syndications offer above-average cash returns with the relative security of proportional ownership and are an effective investment tool in our client’s portfolios.

 

Colliers Syndications team specialises in bringing high-performing property syndication opportunities to the market on behalf of a range of clients. We leverage the knowledge and experience of our people across the New Zealand market, whilst drawing on Colliers national market reach, meaning we're well positioned and connected to tap into proportionate ownership markets nationwide. 

Contact us

Property syndication provides investors the opportunity to access premium, high yielding commercial and industrial property offerings with minimum investments ranging from $10,000 to $50,000. This involves investment in proportionate ownership schemes, allowing experienced property investors to enjoy earnings from high performing property without having to self manage the assets.

Syndication is typically a passive form of ownership most commonly in office, industrial or retail property and comes with a full management package. It enables smaller investors to participate in higher-yielding property that would otherwise only be available to wealthier individuals or institutional investors.

Colliers syndication experts specialise in bringing syndication schemes to the market, linking investors with high-performing schemes and opportunities.

Property syndication

The returns from commercial property tend to be more stable over time versus volatility compared with other asset classes.

Cash returns available from property syndications are generally higher than bank term deposits and are more likely to outperform residential property investments.

Investor’s funds are pooled and they become investment partners in good buildings, with good tenants and long leases. The property is fully managed on behalf of the investors with forecast cash returns distributed monthly into the investor's bank account.

Many investors choose to benefit from diversification through investing in properties in various locations (throughout New Zealand and Australia) and differing property types such as retail, commercial and industrial, along with different tenant profiles.

 
Property syndication advantages

A subscriber 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.

For example, 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.

Our clients operate a secondary market facility to arrange secondary transfers. There is also the ability to purchase secondary units on the Syndex Exchange, a secondary unit trading platform.

 
Property Syndication secondary sales

Property is purchased using investor equity or through a blend of investor funds and borrowings from a bank. The amount borrowed from the bank will be secured by non-recourse first mortgage over the property. The purchase will be carried out by a nominee who will hold the title to the property as a bare trustee on behalf of each investor on a proportionate basis.

Most syndicates have a minimum investment requirement, which generally ranges from $10,000 to $100,000. Once the property has been purchased, a Scheme Manager is appointed and becomes responsible for the day to day management of the asset. The syndication company will take care of the accounting and distribution of income to the investors.

Most Syndications do not have a termination date and will continue until a majority of investors vote in favour of winding them up. Investors can expect to have their money in the scheme for 5 – 10 years, unless they decide to sell their interest through the secondary market.

Potential investors should seek independent, competent advice about this type of investment product if they are not familiar with the various factors that can affect a commercial property's income stream and capital value.

 
The process of property syndication

Offers may only be open to wholesale investors and those qualifying as eligible investors under the FMCA2013.

A wholesale investor is an investing entity who meets one of the requirements below:

  • Investing a minimum of $750,000
  • Has net assets of at least $5m
  • A professional investment business
  • Invested at least $1m in financial products (excluding category 2 e.g. retirement products) in the last two years 

An eligible investor must self-declare their previous investment experience and provide independent verification from their accountant, lawyer or authorised financial advisor. The offeror must then satisfy themselves that this experience qualifies the investor as eligible to invest in this product.

Property syndication wholesale investors
Latest news
18 May 2020
Syndication schemes attract investors throughout the lockdown
New Zealand’s unlisted property fund sector continues to perform well despite the tough economic conditions, as investors seek reliable returns backed by strong tenant covenants.
Read More
12 Mar 2020
Outstanding Hamilton office syndication with Govt tenants
A modern office park with two government anchor tenants, superbly located within Hamilton’s coveted Te Rapa commercial precinct, is on offer through a new proportionate ownership scheme.
Read More
Read more
Latest research
23 Jul 2020
Colliers Essentials | Auckland Industrial Report | First Half 2020
An easing in strong market conditions following COVID-19 impacts could result in a lift in vacancy rates. The increase in vacancy however will be from extremely low levels, measured at just 1.4% as at February 2020. Mitigating factors will be the bolstering of demand through a massive expansion in infrastructure spending and growth within sectors such as transport, warehousing and postal services, which is likely to accelerate given rapid familiarisation with online and ‘click and collect’ services.
Read More
11 Dec 2019
Colliers Essentials | Wellington Industrial Report | Second Half 2019
Sourcing appropriate industrial leasing opportunities is becoming increasingly challenging as Wellington's industrial vacancy rate reached an all-time low of 0.9 per cent in November survey. This represents only 23,000 sqm of available space, down from 39,000 sqm a year ago.
Read More
Read more
Case studies

C:Drive
Syndication of Auckland’s award-winning C:Drive tech hub

Offeror: Oyster

Property: Institutional-grade office investment property on 2.1 hectares of land leased to ASB Bank on a 9 year lease

Address: 33 Corinthian Drive, Albany

Capital Raise: $29,250,000

Minimum investment: $50,000 minimum investment, 585 interests available

Forecast pre-tax cash return: 6.5% per annum

Outcome: Fully subscribed in just over two weeks

Read More
Halls Portfolio
Proportionate ownership scheme of two substantial industrial facilities on long term leases

Offeror: Silverfin

Property: Over 3 hectares of industrial property on long term leases of 12 and 15 years to national tenant Hall’s Transport

Capital Raise: $30,400,000

Minimum investment: $50,000 minimum investment, 334 investment parcels

Forecast pre-tax cash return: 8% per annum

Outcome: Fully subscribed in three weeks

Read More
Managed investment of a property portfolio on long term lease to Inghams Poultry

Offeror: Silverfin

Property: Portfolio of six properties in the Waikato with a combined land area of 186ha

Capital Raise: $46,600,000

Minimum investment: $50,000 minimum investment, 932 investment parcels

Forecast pre-tax cash return: 8.25% per annum

Outcome: Fully subscribed in three weeks

Learn More
How can we help you?

Contact Us

An unexpected error has occurred. Please try again.
Thank you for getting in touch. Your request has been submitted.
One of our experts will contact you shortly.