The property syndicate market for retail investors has evolved post-financial crisis, with investors anticipating capital gains as prices are driven up by interest from overseas and local investors, according to Charter Hall.
Retail individual investors and self-managed super funds are seeking securely-leased long term assets, an asset class also favoured by overseas groups that are pushing yields below levels currently provided by retail syndicates, Charter Hall says.
Richard Stacker, Charter Hall Direct Property CEO, says the retail syndicate market has changed notably 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 percent or greater cash return. 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 percent p.a.,” Stacker says.
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