Property syndicates find favour

3 May 2012
| By Staff |
image
image
expand image

The property syndicate market for retail investors has evolved significantly in the wake of the global financial crisis (GFC), with current investors in specific sectors and markets anticipating capital gains as prices are driven up by both local and overseas investors, according to Charter Hall Direct Property.

According to analysis issued by the company this week, retail investors (both individuals and self-managed superannuation funds) are seeking securely leased long-term assets.

It said that this asset class was also being favoured by cashed-up overseas groups.

Commenting on the analysis, Charter Hall Direct Property chief executive, Richard Stacker claimed the retail syndicate market had changed noticeably since the GFC, with investors seeking to invest into quality assets with lower gearing, conservative payout ratios, increased transparency and more alignment of interest. 

"This is certainly a positive for the industry, with the retail syndicate market generally providing an 8 per cent or greater cash return," he said.

"Quality assets providing a yield at this level are also proving very attractive to overseas investors seeking the security and stability of the Australian economy at a time when yields on 5-year bonds have been driven as low as 3.75 per cent a year," Stacker said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 2 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 3 days ago