How to invest with us?
How to take Part in one of our opportunities:
- Register your name and contact details on our website to receive information on current and future investment opportunities
- Review our current offers
- Read/Review Information Memorandum (IM) or Product disclosure statement (PDS) and contact us if you have any queries
- Return your application form with other documents as per the IM or PDS
- We will confirm once your application has been accepted
Unlisted Property Funds (Property Syndicate)
An unlisted property fund is a form of investment that provides investors with the opportunity to gain access to commercial property assets through an investment within a fund, ultimately enabling a group of investors to collectively purchase large-scale quality commercial property that they may not have access to otherwise.
Unlisted property funds offer a more regular income stream than share market-listed property funds. Our funds offer cash returns paid monthly. This creates a steady stream of income that can supplement an investor’s lifestyle or, in some cases, be reinvested to compound returns.
SFR Capital’s investment vehicles are unlisted and are often preferred by investors who wish to receive monthly distributions and/or prefer to avoid the volatility of the share market. Unlisted investments can provide further diversification to an existing property portfolio of listed investments.
How does Unlisted property Fund (Property Syndicate) works?
Unlisted Property Fund will pool funds from many investors and acquire real estate property or properties for the benefit of all those involved in the syndicate. The Fund will typically be created using a real estate investment trust arrangement. An agreement will govern the relationship between all parties and stipulate key terms and conditions of the unlisted property trust.
A key term in the agreement is the objective of the property Fund.. This will identify the reasons for the creation of the property syndicate as the goals are typically shared across the group. At SFR, we can help you and your fellow syndicate members understand the terms of the agreement so that you are comfortable with your investment.
The Benefits of Syndicated Property Investment
Here is a list of the benefits of syndicated property investment:
- Less Initial Capital Outlay: Individual investors might not be able to acquire larger properties due to the higher initial capital outlay required. A property syndicate will avoid this issue as you can pool funds to acquire higher valued properties.
- Grow Your Portfolio: The pool of funds will help you acquire larger properties with greater growth potential. Also, with a low initial capital outlay, you can save future funds for other investments as you will not be indebted.
- Access More Property: Investing in more than one property is ideal. A property syndicate will allow you to invest in multiple properties to help you maximise your earnings potential.
- Diversify Your Investment: A property syndicate, created with pooled funds, will help you to access different types of property. Diversifying your portfolio helps you spread your risk. At SFR Capital, we have experienced professionals who know how to source lucrative properties.
- Save Time And Money: Investing in a professionally managed property syndicate will enable you to save time and money. As your investment is managed for you, you can spend more time considering how to grow your portfolio and less time worrying about administrative matters.
- StableReturns: By diversifying your investment in a property syndicate arrangement, you will be able to balance your risks. This will help you safeguard your investment from shocks in the market and ensure that your investment remains stable on an upward trajectory.
The Risks with Syndicated Property Investments
Here is a list of the risks with syndicated property investment:
- Less Control: Since there are more than two people in a commercial property syndicate, you might find that you lack control in decision making. To minimise this risk, regular communication with your fellow syndicate members is required and it is wise to ensure that you engage an independent consultant to help manage any differences.
- Consider Interests of Others: You will have to consider the interests of others which might not align to your needs and requirements. Pooling funds together to fund larger investments does carry this risk. However, this can be managed by being transparent about your goals and objectives and articulating this in the overarching agreement.
- Potential Management Issues: If you engage a manager to manage the investment, you will need to stay informed of all management-related matters. Seek regular updates from your manager so that any potential issues are addressed in a timely manner.
- Less transparent: You might find that certain members of the property syndicate have hidden intentions. It is important to know that an individual’s needs and requirements do not remain static and they do change over time. Rather than perceive a change as a negative, work with your group to resolve the issue for the betterment of the syndicate as a whole.