Here’s what you need to know
Property Partner, the world’s first property stock exchange, today announces that investors will be given the opportunity to buy shares directly in commercial properties on its platform.
The move will enable non-institutional investors to buy and sell shares in a range of handpicked commercial properties, at the click of a button. Unlike traditional funds, which are opaque, and have been known to close their doors to withdrawals, Property Partner offers investors the chance to target individual assets and sub-sectors, as well as list shares for sale whenever they like.
According to Property Partner, UK commercial property investments have a market value of £486bn, yet UK based private investors account for just a 7 per cent share of the market. Commercial has delivered an average annual total return of 8.9 per cent to investors over the past 20 years.
Through the online platform, investors will have the opportunity to secure monthly returns from the rental income as well as the capital growth of these properties.
Property Partner will begin by listing high quality commercial properties let to household name tenants on a long lease, in strategically strong locations.
Daniel Gandesha, CEO and Founder of Property Partner said:
“We started by revolutionising access to the residential property market. Now, it’s also clear to us that not enough people can access investments in commercial property in the way they’d like. We’re making it much easier for investors to access the attractive returns on offer in commercial property.
“So far we’ve made investing in residential properties and Purpose Built Student Accommodation easier, safer and more professional for private investors than ever before.
“By launching commercial we’re going one step further. We’re helping investors to diversify not only by location but also by property class. Commercial can offer a stable, long-term yield, with an income stream that grows as the economy expands and protects against inflation.
“For most investors, the commercial property market has traditionally only been accessible through opaque, often illiquid open ended property funds, or listed property companies subject to stock market volatility. We’re doing away with this lack of transparency and access.”
Xavier Pullen, Director of Commercial Property at Property Partner said:
“Commercial property offers a strong and reliable yield over the long-term, which will remain particularly attractive in the current low interest rate environment.
“We will target higher average yields than the major funds, along with the freedom to handpick your investments and list for sale whenever you like.”
“Commercial property is primarily valued on the income it can generate for an investor, with the strength of the lease and covenant of the tenant being key determinants of value. Our strategy will be to find varied investments across sectors that all have the strong tenant factor in common.”