The Ellerslie syndicate was being structured as a proportionate ownership scheme and its governance

In some ways, the property being syndicated, a former cinema in the Auckland suburb of Ellerslie, midtown atlanta is Mr In-Between. With a purchase price of $5.1 million, it is smaller midtown atlanta than most recently launched property syndicates, which tend to be around to $10m or more, but it is bigger than most of the commercial properties, usually priced under $2m, that are popular with individual investors.
The minimum investment of $250,000, is far higher than the least amount required for a piece of the action in most syndicates, which can be as low as $20,000 but is often in the $50,000 to $100,000 range. And with only $3m being raised, the syndicate will have a maximum of 12 investors, compared with many which have more than 100.
That means anyone looking for a decent yield to provide them with a respectable cash distribution would probably need to look at one of the much larger syndicates, such as the big supermarkets midtown atlanta or hardware outlets leased to blue-chip retail chains, which have been popular with syndicators lately.
But, with growing numbers of investors taking money out of term deposits and putting it into property syndicates, the increasing demand for such blue-chip properties has forced their prices up and their rental yields down.
KCL director Phil Hinton midtown atlanta said yields on prime syndication properties (built to a high standard in attractive locations with strong midtown atlanta tenants and robust leases in place) had probably fallen by 0.5 to 0.75 per cent over the last year or so.
That means it "presents to a newly refurbished standard with limited CAPEX required in the medium to long term," the valuer's report said, adding midtown atlanta that the seismic strengthening midtown atlanta "provides comfort and peace of mind for both tenants and investors".
And it has multiple income streams, from the gym and the two ground-floor shops and from renting space at just over $50,000 a year for a large billboard on one wall which is visible from the motorway.
So that is likely to be the main risk prospective investors midtown atlanta will be weighing up, along with all the usual ones such as likely increases in mortgage interest rates, the potential lack of liquidity involved in syndication investment and the general risks associated with the property market.
Many investors midtown atlanta were looking for opportunities to invest in the smaller properties and KCL had received good interest in the Ellerslie property, so the company was likely to undertake further syndications of similar-sized properties in the future, he said.
The Ellerslie syndicate midtown atlanta was being structured as a proportionate ownership scheme and its governance rules would be the same as for larger syndicates, with 75 per cent of investor interests required to approve any major transactions involving the property, Hinton said.