FAQ's

Properties & Pathways completes a thorough due diligence examination on every property to protect each investor’s interest and to mitigate investor risk wherever possible.

Every due diligence of a commercial property includes:

• Reviewing and gaining legal advice on all leases. This includes examining all lease options, lease lengths, general and specific terms of leases and any adverse conditions (particularly anything which may affect the property cash flow or value)
• Obtaining the property’s tenant history, including arrears schedules, aged debtors, tenant turnover, etc.
• Engaging a qualified and independent valuer (on the bank’s panel) for a full property valuation
• Understanding the property history, including vacancy rates, historical repairs, maintenance expenditure, etc.
• Obtaining certification of the building and equipment’s structural integrity, including engineering reports, surveys, machinery reports, air conditioner reports, and roof and awnings reports
• Inspection and viewing of the property for location, convenience, ease of access, traffic flow, etc.
• Understanding the locality’s demographic and gaining traffic reports
• Understanding the asset’s neighbouring tenants and tenancy mixes
• Investigating market rents in the area
• Discussions with local councils to understand any future development in the vicinity which may impact the prospective property.

We believe there are no shortcuts when performing a due diligence.

Each property is purchased in a separate unit trust with a corporate trustee (Properties & Pathways Pty Ltd). This is the most tax-effective structure for property acquisition which minimises land tax liability.

More importantly, it ensures each syndicate operates separately and distinctly from one another, to prevent cross-collateralised debt and to protect each individual investor’s assets.

Effectively, investors purchase units in the unit trust, which secures a direct ownership of the property in proportion to their investment amount.

As trustee (Properties & Pathways Pty Ltd), we make all management decisions to maintain and grow the value of the property. Having a vested interest in the property ensures we make the most astute decisions to protect our investors’ investment.

We also maintains a ‘reserve fund’ to shield investor returns from immediate threat. A reserve fund allows a solid buffer to efficiently mitigate the risk of tenant vacancy, economic downturn, capital and/or structural requirement, while also allowing to take swift advantage of value-add opportunities as or when they arise.

While the reserve fund is not a fail-safe, it certainly buffers investors from immediate shock and adverse conditions which can happen from time to time.

At any time during the life of the syndicate, each investor (unit holder) may offer their units for sale. The only prerequisite to do so is they must first offer their units to existing unit holders. This ensures the existing unit holders have the first opportunity to increase their percentage ownership, before a new party is invited into the unit trust.

Properties & Pathways manages the sale and purchase of units at all times to protect every investor’s investment. Our focus is to keep the value of the units consistent with the value of the property (or, in other words, as high as possible).

Properties & Pathways has a wait list of investors for investment in every syndicate opportunity. Although there is no guarantee, these investors are likely to acquire offered unit holdings given the opportunity.

The current minimum investment amount for new investors is $250,000.00*

*This is subject to change and dependent on the property being syndicated. As such, we reserve the right to change the minimum investment threshold at any time without prior notice. We may consider lower investment amounts in particular circumstances.

Please contact us if you wish to be considered for investing a lower amount.

The majority of our investors are “wholesale investors”. You will meet the eligibility criteria of a wholesale investor if you:

1. Have assets of at least $2.5 million; or
2. Have had an income of at least $250,000 per annum over the past two years; or
3. Control a company or trust which meets the requirements of either item 1 or 2 (above); or
4. Invest over $500,000 into a Properties & Pathways syndicate.

Please advise us if you do not meet these criteria but still wish to invest. We can provide exemptions in particular circumstances and are willing to be flexible for potential long-term investors.

AFSL stands for Australian Financial Services Licence and is granted by ASIC (Australian Securities & Investment Commission).

Properties & Pathways has been granted an AFSL based on a history of experience and expertise managing substantial commercial assets across Australia. Holding an AFSL allows us to raise money from wholesale investors in order to acquire and manage commercial property on their behalf.

Yes, Properties & Pathways contracts an external accountant who completes an audit and compiles all tax return documentation at the end of each financial year.

This documentation will be distributed to each investor in a timely manner.

Yes, Properties & Pathways is at all times governed by The Privacy Act 1988. We ensure all personal information is securely stored and protected.

Yes, a large percentage of Properties & Pathways investors use their Self Managed Super Funds (SMSFs) to invest with us. SMSFs can be an effective investment vehicle to shelter investment earnings and profit from tax obligations.

Each syndicate meets the criteria of the Superannuation Industry (Supervision) Act 1993 and therefore can capitalise on tax effective cash flows and capital growth.

Yes, Properties & Pathways has already facilitated international investment from many foreign parties, particularly from South Africa, UK and USA.

We have also identified the most tax effective structuring for foreign investment to ensure the best possible return for each investor, regardless of residency.

If you are an international investor, contact us for more information on how you can invest alongside us.

Each syndicate is established with an approximate lifespan. Typically, our syndicates range from four to seven years. However, each syndicate is assessed on its own merits and any opportunity to maximise value is sought throughout the life of the asset.

Many factors are considered before any asset is divested. These include but are not limited to:

• Tenant composition and length of tenure
• Rental platform
• Leasing updates
• Interest rate fluctuations
• Property market conditions
• Economic conditions
• Regulatory and or legal changes
• Environmental and/or planning risk
• Capital expenditure
• Unsolicited offers