Commercial Property Trusts...

Hello all,

Where can I find information about commercial property trusts? They've been touted as being able to produce good cash-flow yields, as compared to residential property in general.

Peter Spann also noted in his "$10m in 10y" book that they can be used to offset one's losses from negatively gearing into capital growth based property.

Also, for those who have used commercial property trusts in this manner, is it a viable strategy?
 
Merovingian said:
Hello all,

Where can I find information about commercial property trusts? They've been touted as being able to produce good cash-flow yields, as compared to residential property in general.

Peter Spann also noted in his "$10m in 10y" book that they can be used to offset one's losses from negatively gearing into capital growth based property.

Also, for those who have used commercial property trusts in this manner, is it a viable strategy?

Listed property trusts are available straight off your ASX shelf (buy as you would buy any share), however their return tends to be a bit lower than unlisted. Flip side is the unlisted tend to carry higher (il)liquidity risk.

Fund managers can put packages together of various property trusts to spread out your money - again these are available from fund managers and financial planners (or if you are in the DIY mode, go www.funds.comsec.com.au)

Finally, unlisted trusts - you often find ad's for them in papers like the AFR. Remember they can carry greater risks but potentially higher returns.

Yes, CPT's now form a noticeable portion of our portfolio, and the returns offset some of our negative gearing (yet to see how the tax deferal etc pans out).

Cheers,

The Y-man
 
There's a lot of information in the thread misleadingly called Peter Spann's new book title (I've given the lin k from page 15, there is in formation before, and a lot of information afterward. Peter contributed extensively to that thread- so it's a good starting point.

He also mentions a book on property trusts.
 
I am no expert with commercial property by a long shot - but my guess would be that investing in CPT's when the economy is on the verge of cooling would not be a wise move?
 
Rents going up? Down? Who knows.

Hi,

BIS Shrapnel are quite bullish on the Sydney commercial market. See here. [Click on the 'extract' link in the 'files to download' section.]

So maybe the coming slow-down is not going to affect the commercial market too much?

It is important to remember that commercial leases are negotiated in advance, usually for longish periods of time (5-7 years). Any leases negotiated in the last 2 years would have assumed a fairly bullish outlook. Also, some leases contain 'ratchet-clauses' and other forms of protection for the land lord.

Good commercial trusts will provide you with enough information to determine their exposure to lease-expiration and will generally have a good idea of net income a year or two in advance. Have a look here at some reports for unlisted property trusts. If you open up a report, it will usually tell you if any new leases have been signed and what their expiry dates are.

Of course, retail trusts may be in for a bad time if consumer spending falls since a portion of their income is based on turnover.

Cheers,
Ben
 
Thanks for the sources, people. :)

Just wondering also, if there are any good books on the subject? Are CPTs more related to shares, and hence books mentioning CPTs are in fact share-market based books?

Thanks in advance. :)
 
Merovingian said:
Just wondering also, if there are any good books on the subject?
Earlier in the thread, I referenced the thread which referenced the books- but here is the post from that thread in which Peter Spann recommends two books.
 
If you are serious about investing in Listed Property Trusts then try this web site: WWW.PIR.COM.AU

You can subscribe to their monthly research report for $270 + GST pa.

I think they will send you one free issue if you want to check it out.

Cheers - Gordon
 
geoffw said:
Earlier in the thread, I referenced the thread which referenced the books- but here is the post from that thread in which Peter Spann recommends two books.

Oops... Must have missed it when reading it earlier. :eek:

Thanks. :) :rolleyes:
 
austini said:
If you are serious about investing in Listed Property Trusts then try this web site: WWW.PIR.COM.AU

You can subscribe to their monthly research report for $270 + GST pa.

I think they will send you one free issue if you want to check it out.

Cheers - Gordon


There is a book about investing in Listed Property Trusts (Commercial Property Trusts otherwise known as Real Estate Investment Trusts) comming out in April/May published by Wrightbooks which has been written by the Head of Researh of PIR.

It also covers unlisted property trusts/syndicates and compares LPTs to Shares, Residential property and small commercial properties for the investor.

It has aprox 90 pages of information (36,000 words) and profile pages of all major LPTs (less info than on the subscriber web site). It will be an annual publication and I belive it will be under $30 in the book stores but will probably be available from PIR as well at a discounted price.

It should answer all your queries on this under rated area of property investment.

cheers,
RightValue
 
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