I would like to get people’s opinions on Commercial Property Trusts. I have picked up a prospectus by a group called Glenmont from WA. They are seeking investors to subscribe to their Commercial Property Trust. Minimum investment is 20K. They raise 55% of the funds through private investors and the rest is geared using the property as security.
They have bought a property in Darwin (Cavenagh House) currently leased by the NT Goverment. Tenant pays all outgoings. The Trust is a fixed term, unlisted property trust that will run for 10 years. The forecast returns are 8.7% in year 1,2 and 8.8% in year 3 onwards. To me this looks like a +ve Cashflow investment and one that does not require a huge outlay. What are the pitfalls of this type of investment ? Has anyone else invested with Glenmont or similar group ? To me it looks good, but I have no previous experience with these type of investments. Any advice would be greatly appreciated.maybe do a few checks and searches. That is an awful lot of money in my opinion when you don’t know much about them- and I take it on board you are aiming to find out.
I rather control my $20k than let someone else do it and there are always fees involved…
Elves
With a small sum of money one cannot buy a commercial property by oneself so a trust isn’t a bad idea as such.
But …………., unless the trust will be listed you may find it difficult to get out when you want to.
There are actually many such kind of trusts listed on the stock exchange.
Personally if I ever was inclined to buy shares in such a trust I would look for a trust which had several assets.
Pisces
Trust are good way to get into a sector and learn things without having to worry to much about the day to day running of it – investigation is the key – so many of these trusts have sprung up that you need to know their strategies and procedures for choosing their properties
cheers,
bluecatDo today what you want to do tomorrow
These types of Trusts are not for me. The returns are nothing to write home about. Have you considered just buying shares? Similar returns and easier to sell.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Does anyone else have an opinion on Commercial property trusts that are traded on the Stock Exchange.
I think Peter Spann likes them?
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