Since 2003, BDO Stoy Hayward in conjunction with Consortium Investment Management Limited (CIML) has been establishing Property Unit Trust and Limited Partnership syndicates. These investment syndicates have purchased at least one substantial UK commercial property of circa £5-7m of which not less than 75% by initial purchase price are let to companies with a published net worth in excess of £20m or at least a Dun & Bradstreet 4A2 rating.

The syndicates allow for investors to introduce their equity investment to the fund through tax efficient pension structures, such as SIPPs and SSASs. In addition private non-pension monies can also be invested. The rental income is used to make interest and capital repayments and management expenses. The Schemes are intended to give investors capital growth over the medium term (5-7 years). After this period the Schemes’ members will vote whether to hold, sell or re-mortgage the building(s).

As the scheme is managed by BDO Stoy Hayward and CIML, the burden of liaising with valuers, lenders, agents, solicitors etc inherent in any property acquisition is removed from the investor.

To assist in the purchase(s) a limited recourse mortgage is raised which BDO Stoy Hayward negotiates. Interest rate management techniques are then used to control the risk of adverse interest rate movements. In the event of default the lender will only have limited recourse to the property and the rent.

The syndicates raise the necessary equity before investing. This places the syndicates in a stronger position to negotiate the purchase of suitable properties. In addition by having the equity and funding already in place, the Partnership will be able to purchase buildings more quickly, this means the syndicates do not simply have to rely principally on the price offered to secure an opportunity.

To learn more about our previous funds, please download the updates on this page which provide details of the properties acquired and their current status.

February 2007 Update Brochures Link

Due to the success of the previous 4 syndications, BDO Stoy Hayward is to launch their 5th property syndication that will be primarily focused on the residential investment market. Unlike our previous four funds, the Investment Committee have decided to focus on residential opportunities due to the current strength of that specific market. The Fund is seeking to raise a minimum of £1.5m from Investors and aims to purchase at least one substantial UK residential development or portfolio with the aid of limited recourse borrowing. The intention is that the residential units will be let on assured shorthold tenancies and that the rental income will be used to service interest and loan capital repayments and ongoing expenses.

Should you have any queries with regards the Callender Street Properties syndications or wish to discuss investing in Callender Street Properties (No.5) LP, please do not hesitate to contact either a member of our Property Services team or Wealth Management department who will be happy to provide assistance in this matter.

• Alex Ward, Partner, BDO Stoy Hayward Wealth Management
  alex.ward@bdo.co.uk
• Carol Malcolmson, Director, BDO Stoy Hayward Wealth Management
  carol.malcolmson@bdo.co.uk
• Jackie Nesbitt, Senior Manager, BDO Stoy Hayward Wealth Management
  jackie.nesbitt@bdo.co.uk
• Cathy Brennan, Senior Manager, BDO Stoy Hayward Wealth Management
  Cathy.brennan@bdo.co.uk
• Maurice Arthur, Manager, BDO Stoy Hayward Wealth Management
  Maurice.Arthur@bdo.co.uk