Investors tap into shared ownership of commercial properties

by Roxanne Libatique11 Feb 2020

More investors seem to be interested in tapping into new types of ownerships, especially as several large shared commercial property ownership schemes entered the year with a bang.

Mitchell Mackersy, for example, launched a $215 million property portfolio of prime industrial, retail, and office properties in Hamilton, Mount Manganui, and Tauranga with a minimum investment of $100,000 to wholesale investors. Meanwhile, Oyster Group offers a $77 million Wellington office building in a shared ownership scheme.

An 18-level Pastoral House is also on offer to retail and wholesale investors for a minimum investment of $50,000. At the same time, a $15.55 million portfolio of five daycare centres in North Island is available for shared ownership.

Read more: Report reveals commercial property confidence at three-year high

Ron Mackersy, a consultant at Mitchell Mackersy, noted that many investors tap into shared ownerships for better returns than bank deposits in a low interest rate environment and the passive nature of the investment.

“There's a fair bit of demand out there,” Mackersy told – highlighting that the investment in the $215 million portfolio was almost full already.

He said many investors want to preserve their capital, with some targeting new or almost new property with quality tenants. Investors also seem to be focused on finding suitable properties to invest in because it is a seller’s market at the moment.

“If you've got quality stuff, there's plenty of people who want to buy,” he explained.

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