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.