Know your risks

Selling

There may be times when it is difficult to sell a stake in a syndicate particularly when a lease renewal or a break clause is approaching or if the property has
become vacant and the lease has expired.

Property values may fall as well as rise and that you may get back significantly less than you invested.

Valuation

Although an annual independent valuation is obtained on each syndicated property,  this valuation alone may not be a reliable indication of the valuation of an investor’s particular syndicated stake and other factors could influence the value. For example, if there is only a short number of years left to the expiry of the lease, this will impact on the valuation of an investment in the shorter term until the lease is renewed.

Vacancy

In the case of leased commercial properties, tenants may default, a property may become vacant and in these cases there may be a void in rental income until such time as the default is remedied, the property re-let or sold. Should the property become vacant or the tenant defaults, there may be costs incurred by the
participants, which could include empty rates, service charges, utilities and insurance requirements

Diversification

The investment should be seen as a high risk component of any investment portfolio, and it is important for investors to recognise that it is prudent to diversify their investments.

Advice

Helmsley Group is unable to provide you with any form of investment advice or confirmation that this investment is suitable for you. It is the investor’s responsibility to carry out ongoing monitoring or assessment of their syndicated commercial property investment.

Tax

There are tax rules associated with syndicated commercial property investment and these tax rules are subject to change. Helmsley Group strongly advises you to seek professional tax advice regarding the taxation implications of syndicated commercial property investment.