DABS Consulting is a boutique commercial property investment company that was established almost seven years ago. Back then, it was recognised there was a need for a niche commercial property syndication business on the North Shore to support the needs of our community. Property syndication provides investors a solution for those who want to own commercial property, but do not have the means or risk appetite to purchase a commercial property on their own. Each property syndicate is set up as a limited partnership allowing investors to own a portion of a commercial property together with other high net worth investors and enjoy the benefits of a monthly distribution of the rent received.
Depending on the commercial property, our monthly distributions range between 6% and 9% per annum on the invested amount (before tax). This compares favourably against what can be achieved through fixed term deposits or government bonds. With the recent changes in the treatment of interest on loan deductions and the bright-line test for residential properties, commercial property investment is proving to be a popular alternative. These new rules do not apply to commercial property. An annual distribution paid monthly, plus a potential capital return provides our investors with an attractive total return.
The first DABS syndicated property was established at Omega Street, Albany in 2015 with ten partners each providing an equity investment ranging between $140,000 and $1,500,000. Further acquisitions have continued since 2015, on average two commercial acquisitions each year. There are currently 12 commercial syndicated properties spread across Auckland and Palmerston North with a total portfolio of around $180 million.
We were delighted to host our Annual Investor Meetings in August at the Takapuna Boating Club, where we provided our investors with an update on the performance of each property. The highlight of the evening event was our guest speaker, well known economist Tony Alexander, who shared his current thinking on the underlying trends in the economy as restrictions ease and global economies start to fully reopen.
We are now well into the second half of 2021 and our company strategy when we started out to invest in core locations, quality buildings with well performing tenants remains the same today as it was then. Lara Weaver, General Manager at DABS commented, “Capital values remain strong for good quality stock and securing new properties will remain highly competitive. However, through our relationships and off market introductions we will continue to source quality assets and as part of our purchasing process, undertake a thorough due diligence process.”
Our latest offering is 585 Main Street, Palmerston North. If you are interested in this property syndicate or future syndicates, please register your interest on our website or contact DABS directly.
For further information please contact:
Lara Weaver, General Manager
e. lara@dabsconsulting.nz
m. 021 230 5989
145 Kitchener Road, Milford
www.dabsconsulting.nz
