Selling your property for co-investment has many advantages for sellers. In fact, it makes the traditional sale & settlement look very ordinary in comparison.
Here is a summary of the main attractions
1. It can facilitate access to the future rents & profits of the property, after settlement.
2. It can facilitate access to capital or reduction of debt
3. It can introduce management expertise to enhance future growth or further development
4. It can give you a say in the future refurbishment & direction of the property without having full financial exposure.
Simply put, if sellers believe the property has good prospects co-investment enables you to participate in the property’s future as if you still owned it. Selling a property today can be challenging decision particularly if there are excellent prospects.
There may be future rental uplifts or external factors such as pivotal government infrastructure underway which will enhance the utility of the property and therefore may enhance the value in your property.
Perhaps you may be an owner occupier with a continued need to use the property but could use the release of some additional capital retained in the properties ownership to be re-invested into other areas. And we have had other situations where the property has had enticing redevelopment opportunities and further capital & expertise is required make it happen.
Whatever it is, a solution could simply be the introduction of a co-investment group who will structure the a solution which gives you immediate release of equity and still leaves you a financial interest in your property. And best of all, your remaining financial interest will entitle you to any rents and future profits along the way.
Please see our lists of co-investment property case studies here.