- In comparison to residential property, syndication income returns are generally at a higher level
- The relative stability of returns from commercial property over time versus volatility in other asset classes (refer to graph below)
- Most property syndicates do not have a termination date and will be wound up by special resolution of investors (requiring a 75% majority vote). Investors can therefore expect to have their money in the scheme for perhaps 5 – 10 years, unless they decide to sell their interest through the secondary market.
Who is a typical syndicate investor?
- Experienced commercial property investor no longer wishing to self manage property assets
- General age bracket is 50 – 80 retirees who wish to receive a regular and reliable income stream through passive investment
- Smaller investors who wish to pool their funds to buy a large commercial property that would otherwise be beyond their means
Total Return (Rolling Annual % pa)
By Asset Class
Source: IPD NZ, Colliers International Research