Syndicated Property Investments for Pension Schemes

Many of our Small Self-Administered Schemes own commercial properties either let to the Members’ own business at open market rents or to Third Parties. Another way of owning real estate is to participate in syndicated property investments, which are a share of a commercial premises together with other investors including other pension funds, personal trusts and individuals

A specialist company will source an investment property normally in the region of £1m to £4m purchase price and will put the property out to syndicate.  The syndicate is a cash buyer and receives a net yield on a rental income less management costs, charges etc.  The issues such as management of tenants and the building are therefore taken away from syndicate members.

The properties are chosen for Tenant cover, length of lease and yield.  Rarely do such properties cause problems with Tenant occupation, however it is always a risk to consider.  In addition syndicated property investments are for the long-term and can be liquid in depressed markets.

If you are interested in pursuing this type of investment either personally or through a pension fund, please speak to us.

0 comments on “Syndicated Property Investments for Pension Schemes
  • SSAS and Legal Entity IdentifiersWhat are Legal Entity Identifiers and Does Your SSAS Need One? From 3rd January 2018 it will be a requirement for legal entities and structures to obtain a reference called a Legal Entity Identifier (LEI) from the London Stock Exchange in order for the trustees of a SSAS to carry on investing. This» Read More
  • Mr M.P.On retirement, I had a mixture of personal pensions, the remains of a final salary pension scheme and a pension fund pot from a Group Money Purchase Scheme. I was uncertain as to what I needed to do and how to go about doing it, which led me to turn PML for honest advice and guidance. PML sorted out my complex pension arrangements.
  • How we work closely with Financial Advisers (Part 2)A Financial Adviser had a client with insured pension arrangements of various amounts, including an arrangement with guaranteed annuity rates. The client wished to use his pension arrangements to purchase a commercial property that was owned by the sponsoring employer. Not surprisingly the Financial Adviser did not want to lose the» Read More