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| help and advice | ||||
What is a Syndicate? A Property Syndicate enables a group of like minded investors to come together and invest in a specific property project. The whole point of a syndicate is that a pool of investors share the risks and rewards of any financial venture. How many Investors make up a Syndicate? Anything from 4 to 20 depending on the size of the project, the minimum investment required and the level of investment per investor How is a Syndicate Structured? Each Syndicate is a stand alone Limited Liability Company or Limited Liability Partnership. Each Investor has ownership (Shares) dependent on the level of investment made (e.g. £50,000 investor twice the number of shares that some one investing £25,000 will have) and will participate in returns accordingly. Can I use my Pension money to Invest in a Syndicate as well as Private Money? Yes this is possible and we have an FSA regulated advisor to assist with advice concerning this and also to migrate pension funds into a property-friendly SIPP structure if required. What is the Minimum Investment for a Syndicate? What are the expected returns from an investment in a Property Syndicate? This will vary from project to project and also on whether the project is a Structured Return Syndicate or a Profit Share Syndicate. What is the difference between a Structured Return Syndicate and a Profit Share Syndicate? Structured Return Syndicate With this type of investment there are three types of return for the investor. Two of these are agreed at the outset of the project and the third will be dependant on the final profit level. Example Return of 8% per annum for the duration of the project and 20% bonus on completion are agreed at the outset. For a £25,000 investment there will be a return of £9,000 for a two year project (You will also have your initial investment returned on completion). Share of the profits – The return is dependant on the final profit of the project and your level of investment. If profit was £1.5 million then profit share could be 15% of all profit above £850,000. For £25,000 investment this would be ca. £6,000 (This figure is based on an initial investment by all investors of £400,000). Profit Share Syndicate With this type of investment there is no set return level, all returns are dependant on the final profit of the project. Returns will reflect the level of investment, i.e. a £50,000 investor will receive double the return of some one investing £25,000. Anticipated returns are estimated at the start of the project to provide guidelines for an investor. How long will a Project last? This will vary for each project. The shortest would probably be 18 months and the longest could be 10 years. Are all Syndicates in the UK and Ireland? No. We take advantage of opportunities worldwide, wherever the project makes good commercial sense. For example we are currently looking at blocks of apartments in Germany, a Hotel in Turkey, a marina development in Croatia as well as apartment developments in London. How many Syndicates are available? We only do one syndicate at a time and will generally offer 6 opportunities per year to our investors. Can an Investor get money out of a Syndicate before the end of the Project? The ‘Company’ approach is ‘no’, as generally the funds are tied up in the project. However, with our database of investors we would anticipate than in an ‘emergency’ it would be possible for us to find another investor to take up the opportunity. What protection do investors have? The syndicates are not governed by FSA (Financial Services Authority) regulations and should be seen as a higher risk investment as there is no recourse to the Financial Ombudsman etc. As described earlier, the Investor is a member/shareholder in the Property Investment Company. If the Investor is not comfortable with the risks involved in this, we would urge a more mainstream property investment option. The comfort for the investor is provided by:
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How many Investors make up a Syndicate? How is a Syndicate Structured? Can I use my Pension money to Invest in a Syndicate as well as Private Money? What is the Minimum Investment for a Syndicate? What are the expected returns from an investment in a Property Syndicate? What is the difference between a Structured Return Syndicate and a Profit Share Syndicate? Are all Syndicates in the UK and Ireland? How many Syndicates are available? Can an Investor get money out of a Syndicate before the end of the Project? |
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