Investment in Prime Commercial Property through Syndication
Reid Rose Gregory and Druces LLP are launching an initiative aimed at Certified High Net Worth Individuals offering opportunities to participate in prime commercial property throughout the UK, through tax efficient syndication.
It will enable like minded investors to gain entry into a market sector that has just endured the largest downturn since the 1970’s, with values at an historic low, and which in our view is likely to offer unprecedented buying opportunities.
The Means
The simplest and most efficient method of co-participation is through a nominee company and the use of a Trust structure, which is both tax transparent and tax efficient, and suitable for a variety of investors.
RRG will source suitable properties and Druces LLP will provide the legal expertise in creating the vehicle and handling the acquisition, to provide a complete and professional purchasing package.
Investment Strategy
Given current market conditions it is intended that initially RRG will source income opportunities, based on prime location, covenant and length of lease, targeting investment returns of between 8 – 12% per annum, excluding capital growth.
All syndicates will be open ended but with an anticipated lifespan of between 2 – 5 years, and properties may be financed to enhance income returns, depending on the specific requirements of each syndicate.
Why Invest in our Syndicates?
There are compelling reasons for investors to pool resources and use the Trust based investment vehicle:
- They are not regulated by the Financial Services Authority (FSA)
- Quick to set up
- Low start up costs
- Low running costs, as not regulated by the FSA
- No front end deduction fees, annual asset value fees, early exit penalties or profit sharing fees
- Higher returns because of low costs
- Tax transparent
- Suitable for a variety of investors including SIPP’s/SSAS’s
- Participants taxed according to personal circumstances
- Non recourse finance available + no personal liability
- Direct property interest acquired therefore a ‘tangible’ asset
- Enables smaller investors to actively participate in larger and better properties
- Enables investors to spread risk over several properties
- Privacy – information not in the public domain
Why Invest in Property?
- Disaffection with returns from other asset classes such as shares, unit trusts, deposit accounts, etc
- Lack of trust in the financial markets and financial advisors
- Direct property interest acquired therefore a ‘tangible’ asset
- Property can offer a secure income return, and capital growth
- The UK property market has just endured its largest fall since the 1970’s and property values are at a low point, and investors will be buying in at the bottom of the market
- Financing purchases enables income returns to be enhanced
- Low interest rates means cheap finance opportunities
The minimum individual investment is £25,000, with no upper limit, depending on the opportunities available.
What to do next
If you are a qualifying High Net Worth Individual and would be interested to participate, please register your interest by contacting either:
We will immediately forward you a detailed Prospectus.
If you require further information on the structure or have any legal queries, please contact:
Should you then wish to subscribe, an Application Form and a Statement for Certified High Net Worth Individual will be forwarded to you for completion.
17 Woodstock Street, Mayfair, London W1C 2AJ
Tel: 020 7493 4242
Fax: 020 7493-3069 e-mail:
mail@rrg.co.uk
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