LandMark White's fund management arm LMW Invest has formed a joint venture with the Denison Group to rollout a series property trusts.
The partners have launched the Denison LMWI Property Trust no. 1 which will be seeded by an eight level office tower in North Sydney.
The trust is forecasting a yield of 9%. The North Sydney property is a prominent freestanding building comprising upper office levels, ground floor retail and underground car parking. The building is 96% leased to several quality tenants with staggered lease expiries.
The Denison Group’s CEO Matthew Burrows is confident the property represents an excellent first step for Denison LMWI.
“We believe the harbour views and proximity to major amenities makes this property highly desirable to future and current tenants,” he added.
LMWI’s director of marketing and distribution Linden Toll said there was strong demand from investors for a return to traditional property investments.
“By traditional we mean simple structures with regular income derived only from rents. For a very long time, retail investors have not had access to investments such as this – other than through a wider investment trusts that carry a broad array of risks.
“The current climate means that investors are now seeking simple, understandable structures that deliver consistent rental returns. We are very excited to bring this offer to the market and look forward to releasing further offers in due course,” he added.
The close-ended, illiquid syndicate has a five to seven year investment term with a minimum investment of $10,000.
Australian Property Journal
