The property syndicate market for retail investors has evolved significantly in the wake of the global financial crisis (GFC), with current investors in specific sectors and markets anticipating capital gains as prices are driven up by both local and overseas investors, according to Charter Hall Direct Property.
According to analysis issued by the company this week, retail investors (both individuals and self-managed superannuation funds) are seeking securely leased long-term assets.
It said that this asset class was also being favoured by cashed-up overseas groups.
Commenting on the analysis, Charter Hall Direct Property chief executive, Richard Stacker claimed the retail syndicate market had changed noticeably since the GFC, with investors seeking to invest into quality assets with lower gearing, conservative payout ratios, increased transparency and more alignment of interest.
"This is certainly a positive for the industry, with the retail syndicate market generally providing an 8 per cent or greater cash return," he said.
"Quality assets providing a yield at this level are also proving very attractive to overseas investors seeking the security and stability of the Australian economy at a time when yields on 5-year bonds have been driven as low as 3.75 per cent a year," Stacker said.
