Equity Investments in property are generally through the purchase of shares within a company that has been set up for the sole purpose of a property development project. The project will be for the purchase of land, the development of the project, which can be then sold as individual units, as a whole development or the most usual is that the units in the development are leased/rented and then operated as an income generating asset.
The exit strategy is then to package the whole development as an investment to a pension fund or investment fund. The projects are generally focused on a particular market and an area that there is a lack of supply. For example, student developments in certain UK Cities that have a shortage of student specific property. This where the student population is growing and after the first year in the halls of residence there is a lack of options for students looking for quality accommodation.
Investments are tailored to investors who want to invest on property but in a more operational hands off, without the requirement to manage an asset and maintain it in the long term. Equity investments provide a higher rate of return, but they do not generate a monthly income. The investment is for the long term and will produce income from the development, income generated on completion and the exit strategy.
Investors who are interested in these types of investments should as always carry out the necessary due diligence, with the management and development company, based on their track record and current successful projects.
Magnate Assets has access to equity investment options with reputable companies around the world with options in the Americas, UK, Europe and the Far East.
If you want more information on the options available please register your interest using the form provided, or make an appointment here at a time of your choice for an online meeting.
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