Commercial property syndicates

[epower]

Anyone invested past or present in property syndicates?

Invested solely in growth index funds currently but want to invest in something I can take a little more interest in.

Seems like everyone has a horror story in the media or my aunties and uncles that’s bought in them in yesteryear but not sure if this relates to the current state of things.

Also considering syndicates in farms or orchards as that’s my career background.

Note I’m not wholesale investor status.

[kiwikeith]

The experts tend to suggest you are better of just buying shares in Listed property companies as you get more diversification (ie they own a number of properties whereas property syndicates tend to own just the one property) and they are far easier to exit from if you need to. Of course those with long memories will remember Robt Jones Holding's and Ollie Newland's Landmark which burnt a lot of investors.

[JBmurc]

Anyone invested past or present in property syndicates?

Invested solely in growth index funds currently but want to invest in something I can take a little more interest in.

Seems like everyone has a horror story in the media or my aunties and uncles that’s bought in them in yesteryear but not sure if this relates to the current state of things.

Also considering syndicates in farms or orchards as that’s my career background.

Note I’m not wholesale investor status.

Personally, I'd be avoiding any of these types of investments till a later date.. interest rates likely to head even higher .. recession could lead into depression ..

[GTM 3442]

Anyone invested past or present in property syndicates?

Invested solely in growth index funds currently but want to invest in something I can take a little more interest in.

Seems like everyone has a horror story in the media or my aunties and uncles that’s bought in them in yesteryear but not sure if this relates to the current state of things.

Also considering syndicates in farms or orchards as that’s my career background.

Note I’m not wholesale investor status.

Generally they are promoted as having "Forecast returns of. . . ". I don't know how well they go at reaching those forecast returns.

I guess you could have a look around Syndex at what's on offer on the second-hand market, and at what premium/discount to issue price.

Personally I'm not interested due to lack of diversification and lack of liquidity.

[winner69]

epower ……this could interest you

https://www.chrislee.co.nz/taking-stock

[troyvdh]

PFI ...going back a bit I recall Gareth Morgan amongest others was a director.
I believe for over 20 years PFI had a return for shareholders...averaging about 10 percent compounding.The top performer.
Major shareholders I believe have remained loyal.
And I believe PFI is the only listed property entity that hasnt changed its name since inception.

[kiwikeith]

PFI ...going back a bit I recall Gareth Morgan amongest others was a director.
I believe for over 20 years PFI had a return for shareholders...averaging about 10 percent compounding.The top performer.
Major shareholders I believe have remained loyal.
And I believe PFI is the only listed property entity that hasnt changed its name since inception.

To be honest most of the property companies returns over the last decade have been solid rather than spectactular. Argosy and Precinct share prices are pretty much where they were a decade ago while Kiwi is down a bit - so the return has essentially been the dividends. Goodman share price has doubled in that period but their dividend is pretty low. Looking back over 10 years I am guessing PFI has been the pick of the bunch.

[Daytr]

Anyone got an idea where average commercial yields are at?
I know there are a lot of variables, location, term, tenant etc. But just a ballpark.
TIA

[Walter]

Anyone got an idea where average commercial yields are at?
I know there are a lot of variables, location, term, tenant etc. But just a ballpark.
TIA
Listed companies seem to be getting yields on around 6% on quality properties. Yields are higher for the lower quality stuff.

[Daytr]

Listed companies seem to be getting yields on around 6% on quality properties. Yields are higher for the lower quality stuff.

Thanks. Pretty much where I thought it would be. Could be a good time to start looking at commercial property ahead of rate cuts.

[winner69]

Another bit on syndication / funds from Chris Lee
https://www.chrislee.co.nz/taking-stock

[Aaron]

Probably behind the paywall

https://www.nzherald.co.nz/business/1b-oyster-group-fund-suspends-investor-withdrawals-selling-properties/6BV3NIJ34ZEXVNGT4JI4C4KF2M/

Oyster fund's business plan obviously did not have a 7.73% interest rate. I wonder what interest rates they were planning on? Or perhaps rents would rise sufficiently fast to justify the purchase price and cover the mortgage.

Makes you wonder about the yields that listed companies are planning on.

Maybe the impending depreciation denial is a factor.

No redemptions happening currently but you can sell on Syndex.

I imagine even with Syndex it might still be quite illiquid.

Can you register with syndex and peruse what is on offer?

I guess there would be all sorts of syndicated farms, orchards, vineyards and commercial property on offer.

If it is illiquid there might be bargains to be had.

Has anyone looked into this?

[kiwikeith]

1b+ Oyster Group fund suspends investor withdrawals, selling properties : r/newzealand (reddit.com) (https://www.reddit.com/r/newzealand/comments/1bi2cq0/1b_oyster_group_fund_suspends_investor/)

[troyvdh]

Oh dear....what a surprise.
Isnt this so predictable ...
Higher rates of return promised ....higher risk.