Syndication Case Study: 52% Total Return in 2.5 Years (20.8% Per Annum)
In November 2019, a wholesale investor invested $100,000 in our Hastings Distribution Centre Property LP syndicate through the subscription of units in the syndicate.
It is a 45,351 m2 warehouse tenanted by Heinz Wattie’s on a 7.65 lease (4.65 years as at 1 September 2022) with an 8% pa* projected pre-tax cash return, paid monthly.
In July 2022, he sold his units for $132,000 at 32% profit in addition to the 8% annual pre-tax cash returns he had received monthly.
We facilitated the sale of his units to another syndicate investor within 7 days.
In 2.5 years, the wholesale investor’s total pre-tax return from his initial $100,000 investment in the Hastings Distribution Centre Property LP syndicate was approximately $52,000 – 52% total return or 20.8% per annum.
Property funds such as the Hastings Distribution Centre Property LP syndicate can provide not just competitive cash returns for wholesale investors, but also potential for longer term capital growth.
The Hastings Distribution Centre Property LP syndicate is currently closed to future investment. To learn more about current investment opportunities click here.
*Projected cash returns are for a full one-year period. Distributions have been paid monthly at the projected pre-tax rate of 8% pa since inception. Payment of past cash distributions does not indicate or guarantee future distributions can be maintained at the same rate as returns may be impacted by risks including those outlined in the Information Memorandum for the offer.
Important Information: Past performance is no guarantee or indication of future performance. Returns may vary and are not guaranteed. Applications for the Hastings Distribution Centre Property LP are not currently being accepted as the syndication has been fully subscribed. Actual returns and performance of current and future Erskine Owen syndicates may vary.