Working together to optimise returns and capital gains

Private syndicated property investments are flexible, tax efficient mechanisms designed to facilitate the purchase of properties. The objective is to provide you with a good regular return on your money while providing an ongoing capital asset that benefits from the market's usual upward appreciation.

We can help groups of investors – which can include individuals, associated parties, pension schemes or others - combine your resources to buy a property investment through a Special Purpose Vehicle or SPV.

As professional asset managers, we take care of all the administrative tasks of the project as well as its future management, so saving you from the inconvenience of property purchase, finding tenants, adhering to regulations, and various legal pitfalls.

Syndicates are popular because an individual investing in property alone can find too much of their capital tied up in one place, leading to unacceptable levels of risk. Being part of a syndicate allows you and your fellow participants to spread their investments and thus reduce risk.

Another key benefit of a syndicate is that each investor has control of their share of the asset and should they decide to sell some or all of their ownership to another party, it does not impact on the loan or other investors.

Funding is simplified as a single loan, secured as non-recourse debt and can be agreed at the syndicate level rather than against individuals. Not only that but because the syndicate generates a broad base of investor participation, this can also reduce the requirement for debt.

As a syndicate is a tax transparent structure, investors receive gross rental income, net of costs. And because syndicates do not constitute a collective investment scheme they are not subject to Financial Conduct Authority (FCA) regulations.

Syndicates are intended to be mutually beneficial vehicles and we gain by charging the syndicate for its services, either by taking a share of the rental revenue and/or being part of the syndicate.

Before entering into a syndicate, you should be fully aware of the risks, which include:

• Yields and capital growth are not guaranteed
• The value of property can fall as well as rise
• If borrowing applies to the property investment, higher interest rates can reduce returns
• Should the property fall vacant the syndicate, as owner, may be required to pay the business rates
• The general economic profile of a location may change, which can affect income growth
• Property purchases can fall through, so any pre-contract costs would have to be met proportionately by the syndicate's partners.

While property investment is considered a lower risk option than stocks and shares investment, such a single asset holding could take time to convert to available funds. And drawing on your share of the partnership would be entirely dependent upon you finding a purchaser for your share.