commercial trust

[Archi]

Hi everyone

Commercial trust is a high risk, high returns compares to residential property, so recently I’m researching those commercial trust. However, as a newbie in commercial property, I’m not familiar with the system in commercial trust. So could anyone point me out how, and where can I get the information, and other things newbie have to know?

Cheers

Archi

 

[keithj]

Commercial trust is a high risk, high returns compares to residential property, so recently I’m researching those commercial trust. However, as a newbie in commercial property, I’m not familiar with the system in commercial trust. So could anyone point me out how, and where can I get the information, and other things newbie have to know?

If you mean LISTED property trusts then start at ASX here.

UNLISTED prop trusts are harder to research, usually higher risk, less liquid & sometimes even higher returns.

Also check out the ASX Listed Property Trust Index, which currently yields 7.3%.

And you may be interested in this - (I couldn't find the source report at the ASX)

Edit - Found it - The ASX report is here

 

[juzz]

Archi,

Many Developers buy properties in many different entities, including
trusts. If your going to invest in any of these types of deals, you MUST
know what your doing. Treat it like a mortgagee does.
Really your lending them private finance money or seed capital, so
be extremely carefull. If something goes wrong, your money is usually
the first on the line.

Justin

 

[RightValue]

A book called "Australia's Top Property Trusts" will be released by Wright books on June 3. It covers Listed Property Trusts, the returns and the risks and the drivers to returns.It also has a significant chapter on unlisted Trusts and Syndicates.

It also covers commercial property fundamentals.

Property trusts are no higher risk than any other investment. Risk and return are related and it depends on the risk you are talking about.

Like the recent ASX release it compares the returns of Residential Property to LPTs and Shares. In the last 18 months (of a 12 year period) LPTs have outperformed on an accumulation basis.

In terms of Standard deviation (the standard measure of risk), they are highr risk than residential property, but that is due mostly to measurement periods.

cheers,
RightValue

 

[Merovingian]

A book called "Australia's Top Property Trusts" will be released by Wright books on June 3. It covers Listed Property Trusts, the returns and the risks and the drivers to returns.It also has a significant chapter on unlisted Trusts and Syndicates.

Thanks for that! LPTs are one area I'm interested in at the moment. I might consider the book when it comes out...

 

[juzz]

I think its clear we need clarification from Archi as
to exacly what type of trust(s) he's considering??

LPT or Private.

Juzz