PHOTO: MONIQUE FORD / FAIRFAX NZ The Spark building in downtown Wellington sold for $197.5m in 2018 to syndicators Mitchell Mackersy which raised part of the money to buy it from investors.
Buying into commercial property through syndicates is proving popular when bank term deposit rates are so low.
A property syndicate pools money from individual investors to buy property and share the rental income. Syndicates are set up through a formal legal structure. Investors usually buy “units” or “shares” in the property.
Returns of 5 per cent pre-tax and greater are pulling in the punters on the hunt for investments that can beat the paltry returns from term deposits like 2 per cent to 2.7 per cent for a one-year term.
“I don’t think we’ve seen as big an appetite ever as there is now,” Colliers International syndication specialist Charlie Oscroft said.
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