Different ways to invest into Commercial Property
Pension companies and pension holders alike have discovered that commercial
property is an asset class all on its own. Historically, the only way that
the average person on the street could enter this lucrative class, primarily
due to the cost of the properties in question, was by way of their pensions,
thus using the might of the pension companies.
Many of the larger Pension companies sold off their commercial property holdings,
which they had held over the last 12 to 15 years and bought into the stock
markets. This has been an extremely expensive error of judgement, which has
exposed them to massive deficits in their asset to debt ratios, at great
cost to those who are expecting a pension at the end of the day.
BBC News 6th Aug 2003
"Britain's top 100 companies have had the black hole in their pension schemes double over the last twelve months to a shortage
of £55bn. Some major companies have deficits in their pension schemes greater than the total value of the company. The Share index would have to rise by
40% by the end of the year for them to recover this, equivalent of the index moving up to 6,000. This clearly is not going to happen."
We at Hamiltons Investment Group S.L. have, for many years, recognized
the value of this class of investment and have assisted hundreds of clients
to purchase commercial property, ranging in price from £1 Million to over £50
Million. These clients have either been corporations or syndicates. Over
time we have been approached by many individuals, who have seen the benefits
to their companies, asking how they too as smaller investors, could get in
on the action. Well, we are pleased to say that we have been able to assist
them in their quest in the following ways:
investment property, commercial property, property investment advice,
funds investment property |
1. Property syndication and outright ownership
This is a system whereby an individual or a small group of individuals (usually
no more than 5) will club together and raise £1-1.5 Million as a deposit
on a building valued at £5 Million getting finance for the balance and managing
the property themselves. This requires a lot of personal time and involvement,
as one would expect with an investment of this size.
2. Limited partnerships
This is a system that has become very popular with the smaller investor who
typically has £100,000. Limited partnerships are usually obtained via a property
company. The property company establishes an individual offshore company to
purchase each property, and then sells shares in the company at typically
£25,000 per share thus raising the initial deposit for the property and
arranging finance for the balance.
3. Investment companies based in offshore jurisdictions
investment property, commercial property, property investment advice,
funds investment property
These are investment companies based in offshore jurisdictions such as the Isle of
Man, Guernsey, Jersey, Dublin or Luxemburg. They facilitate an investor
with at least £50,000 to participate through a series of UK Commercial Property
Funds, allowing greater diversification as one can invest as little as £10,000
per fund thus having a selection of 5 Funds. |
4. No Capital but I do have a monthly savings capacity
We are able
to assist in accessing commercial property investments through a regular
savings program staring for as little as £500 per month.
Risk
investment property, commercial property, property investment advice,
funds investment property
Experienced
investors understand
it is necessary to take risks to achieve potentially higher returns than
leaving money on deposit in a bank.
We believe that a good spread of well run Commercial property Funds
offer a good return without the potential risks of conventional equity
funds.
If you require further information on any of the Commercial Property
funds then please contact us simply filling in our enquiry form.
investment property, commercial property, property investment advice,
funds investment property |
|
