Syndicated property investment – projected net rental yield of 7.8% p.a.

We are highlighting an exciting opportunity to participate in the acquisition of a freehold convenience store and BP-branded petrol filling station in Matford, Exeter for £1,475,000. It is located close to junction 31 of the M5 and there is a 20-year tenancy agreement in place with the operator who has a 5A1 Dun & Bradstreet credit rating (the combination of highest financial strength and lowest risk). 

To drive investor returns the acquisition will be part-funded by debt – limited to 50% of the purchase price. A significant amount of the equity funding has already been secured, with just £400,000 left to fill, which is the amount of the offer. 

The offer will close Monday 14 November 2016. 

Projected net rental yield is 7.8% p.a. and an annual IRR of 9.96% (variable and not guaranteed). 

Important: this investment is a property syndicate and is not regulated by the Financial Conduct Authority. Capital is at risk. 

Investment highlights

  • Well located freehold convenience store and petrol filling station close to M5
  • Guaranteed rental growth built into 20-year lease which expires June 2036 with no breaks
  • Guarantee from tenant’s parent company Palmer & Harvey McLane Ltd
  • Fixed contractual uplifts at 2.5% per annum compounded and payable 5 yearly 
  • £95,000 annual rent until June 2021, increasing to £107,484 thereafter
  • Projected net rental yield of 7.8% per annum 
  • Annual IRR of 9.96% (not guaranteed)
  • Highly experienced property agent and asset manager
  • Growing market with significant merger and acquisition activity and large pool of buyers/exit routes

The offer

  • Target equity raise £400,000
  • Investment vehicle is a syndicate using a nominee company and trust structure
  • Invest as an individual or a company 
  • Minimum investment £50,000 – maximum 8 investors
  • Offers close Monday 14 November 2016

Wealth Club Portal - Syndicated property investment - mapHow to invest – offer must close on Monday 14 November

To request your priority application pack please contact us on 0117 929 0511 or email us.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

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