Property Investors Seeking Yield – No.1 Martin Place, Sydney

by Neil Heriott

An important part of portfolio construction is diversification across investments and investment types. Whilst the sharemarket is an excellent way to diversify in investments, it is also important to have some investments in your portfolio that will not have the same associated volatility. Direct Property or Property Syndicates can achieve this lower volatility, with the advantage of Property Syndication being that you don’t have to purchase the entire property to achieve the same overall effect.

One of the best commercial property syndicates in Sydney has become available again for all types of investors. The property syndicate has re-opened for a short time and is seeking investors for their No. 1 Martin Place building in the heart of the Sydney CBD. This property syndicate is probably the best value we’ve seen for five years or more. The basics on the property are as follows:

• 100% tenanted with 83% of income from long term leases; • Forecast 8% pa distribution, payable quarterly; • 34% pa Net Gearing, making it one of the lowest geared property syndicates available; • New investors are entitled to an 11% discount to Net Tangible Assets (NTA) which is 25% below the building’s peak valuation; • Independent research house Lonsec, has given the property syndicate a rating of ‘Recommended Upper End’; • Very low management fee of 0.39% pa.  • $10,000 min investment.

WHAT YOU MUST DO TODAY:
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