Capital Growth Investment Syndicates
Investment in commercial property that is let to secure, well-financed tenants has been beyond the scope of all but the wealthiest investors.
The reason is simple: cost.
Those that can afford it, however, get very secure rental income, good capital appreciation and full tax deductability for interest on their borrowings.
Grattan Asset Management specialises in putting together commercial property investment syndicates which combine individual investors' resources to buy high-quality investment property in Ireland and the UK. Our investors gain access to investment-grade property that would otherwise be beyond their reach.
Commercial Property Investment in London and the Southeast
"Collective, or syndicate, ownership has made it possible
for groups of Irish investors to acquire prime commercial property
ranging from relatively modest investments
to some of London's most impressive landmarks."
full article
Grattan Asset Management is constantly sourcing good-quality office and retail properties in Ireland and the UK. Information on properties that meet our investment criteria and have been approved in principle for bank lending is circulated to clients at regular intervals.
Property Selection
In selecting a suitable investment opportunity, whether in Ireland or the UK, Grattan has particular regard to the property's potential for future capital appreciation. In assessing the potential for capital appreciation, Grattan Asset Management looks to see if the purchase price represents fair value.
In the recent past, Ireland has experienced strong growth in capital values with the result that it can be difficult to find investment-grade properties selling at reasonable prices. In the UK, this difficulty is less acute as the capital values of UK investment grade properties have not seen as sharp an upward adjustment as that experienced in Ireland, when domestic interest rates fell in order to converge with Eurozone rates.
In general, we believe that the UK offers better prospects for capital growth in investment-grade properties than Ireland. As a result, many of our current investment offerings are UK-based.
Since the UK emerged from recession in 1993, the UK property market has delivered very satisfactory levels of growth. For example, the combined capital and income gross return on commercial property over the five years to 2003 has averaged 10.5% p.a., with the combined return on commercial retail property averaging 11.1% over the same period (source: IPD).
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