What We Do

Property Syndication and Management

Silverfin Capital Limited is a business specialising in property syndication and management, licensed by the Financial Markets Authority (FMA).  Our schemes are structured to provide investors with a cash return from commercial and industrial real estate, without the burdens of private property ownership.

The directors and senior management team of Silverfin have considerable property expertise in property development, facilities and asset management, property investment, business administration and accounting. Silverfin currently manages a wide range of retail, office and industrial properties valued at over $570 million, including single ownership entities and syndicates.

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Property Syndication Process

Property syndication involves the proportional ownership of commercial property. At a high level, the process in syndicating a property is as follows:

Property Identification

Silverfin will identify a property to acquire that has the correct investment attributes in terms of tenant covenant, lease term, build quality, location and industry sector.

Debt Funding

We obtain debt funding from one of the major trading banks, utilising our experience to obtain the best possible interest rates. The level of debt funding (or Loan to Value Ratio (LVR)) is typically between 40% to 50% of the purchase price.

Investor Funding

The remaining 50% to 60% of the purchase price, plus scheme costs, will be raised from our investors through the proportional ownership structure.

Silverfin typically creates units of $50,000 with investors able to purchase multiple units in any one scheme. For example, assuming $10 million of equity was required for the purchase of a commercial property, we would create 200 units of $50,000 and make these units available for our investors through a ‘syndication sell down’ process.

Proportional Ownership

Each investor in a scheme will become a ‘proportional owner’ of the property in that scheme. If you purchased one unit in the scheme in the example above, you would become 1/200th owner of that property.

The property’s title will be held by a nominee company whose sole purpose is to hold the property on behalf of the owners.

Distribution Payments

Once the property has settled and the scheme is operational, investors will receive a regular monthly distribution payment from Silverfin.

The distribution payment is derived from the rent generated from the property less costs (such as interest and operating expenses).

Termination Process

The intention is that schemes will be medium to longer term investment vehicles. When the decision is made to terminate a scheme, the property will be sold with proceeds returned to investors, less costs and bank debt.

The termination of a Scheme must be ratified by the passing either a special resolution of Investors (75% of voting interests) if the termination is within five years of commencement; or an ordinary resolution of Investors (50% of voting interests) if the termination is after five years of commencement.

Terms may change from scheme to scheme making it important to read each scheme’s documentation prior to investment.

Prior to the termination of a scheme individual units can be traded on the secondary market. We utilise the ‘Syndex’ platform for secondary sales, where units in existing schemes can be listed and bid on by other Syndex users (see section entitled ‘Syndex’ for further information or visit: www.syndex.exchange)

Find out more about the investment process and current opportunities here.

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