Pros and cons of property syndication

The appetite for syndicated property investments is increasing although its rise has not been greeted with delight by some expert and long-time investors.

A Christchurch retail property is the latest to be offered for sale to syndicate investors this week, paying 9 per cent on $100,000 lots.

Colliers International said Moorhouse Central Ltd from Ocean Partners Property would offer the Countdown supermarket to syndicate investors, planning to buy the property for $21.5 million from an Australian investor.

The supermarket and 10 retail tenants including a Burger King, Pharmacy Xtra and a food court are offered in the syndicate.

Countdown had leased the building until 2020 and Sarah Ott, a partner at Ocean Partners said investors were only getting 3 to 4 per cent from banks but could get more than double that via the syndicate.

To read the full NZ Herald article click here

Posted: 29 Apr 2009

News articles