The syndicate is legally structured as a unit trust, with intending investors applying for Ordinary Units in the trust. Each unit holder is entitled to share in the income and capital of the trust in proportion to his unit holding.
Adelaide has a relatively small commercial property market. Notwithstanding, there are businesses that require office and retail space to service their customers. Given there is a demand for commercial properties, there is an opportunity to invest. However, given the smaller market, it is important that appropriate due diligence is conducted on the property and the tenant to ensure the investment delivers positive returns.
The benefits of investing in commercial property in Adelaide is that the property prices are comparatively cheaper. Acquiring commercial property in Adelaide is easier and because there is less competition in Adelaide, longer-term tenancies are available. This provides property investors who are entering the marketing to acquire quality properties at affordable rates with respectable yields.
The commercial property market in Adelaide is stable but not as strong as neighbouring Melbourne and Sydney. Very few businesses choose to operate out of Adelaide. However, this does not mean that there are no investable commercial properties. While the yields and capital growth will remain lower throughout 2020, stability affords most investors comfort.
Commercial Property Investment & Real Estate Syndication in Adelaide with Peak Equities
Investing in Adelaide commercial property requires you to have either the funds to purchase the property outright or an appetite to subscribe to a commercial property syndicate. The latter form of investment is an indirect method where you acquire units in a trust and receive a proportionate amount of rental return and capital growth. This helps investors with limited funds enter the commercial property investment market.
September 19, 2019