Investing in UK Commercial Property, ? Risky

C

Collylolly

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Is UK Commercial Propery investment very risky ?. A pal wants me to follow him into an 'actively managed' commercial property venture being promoted by AIB, called The Sixth Belfry Properties(UK) S.A. The bones of the deal appear to be - invest 80,000 euro for seven yrs . Inital commsion is 2%, annual management fees of 0.7%, and annual admin fees of 0.65%. 80,0000 does not appear to be a hugh ammount of money to get 'in the door' of commercial property, but I have two questions : are these charges high ? (I have never been involved in anything like this before, so nothing to judge it by ), and has property 'peaked' in Uk too ? (tricky I know ). Any broad strokes advice about investing in this type of group scheme, for the ordionary punter !
 
Collylolly said:
Is UK Commercial Propery investment very risky ?. A pal wants me to follow him into an 'actively managed' commercial property venture being promoted by AIB, called The Sixth Belfry Properties(UK) S.A. The bones of the deal appear to be - invest 80,000 euro for seven yrs . Inital commsion is 2%, annual management fees of 0.7%, and annual admin fees of 0.65%. 80,0000 does not appear to be a hugh ammount of money to get 'in the door' of commercial property, but I have two questions : are these charges high ? (I have never been involved in anything like this before, so nothing to judge it by ), and has property 'peaked' in Uk too ? (tricky I know ). Any broad strokes advice about investing in this type of group scheme, for the ordionary punter !
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Need to look at some of the estate agents sites for UK commercial property which has had a great return the past 3 years. So you will not be getting in ahead of the crowd or cheap. The problem with some of these things is that after a good year or two the promoters have some great numbers to report on i.e. up 40% over 2 years etc.

Need to check the loan to equity that will be applied, how much will bank borrow on top of your 80k to give the leverage necessary to make the gains for you. Then you will understand how much the market can decline before you take a hit and how much you gain for each 1% increase in market.
 
Where in the UK is this located? Further, I can find nothing on the web about Sixth Belfry Properties.
 
Thank you for your replies, it looks as if the bank is putting up 80% while investors make up the rest. Its the sixth Belfry's properties Fund, initial fund commenced in 2001. Located all over England, London, Northampton, Glasgow etc. It is being promoted by AIB private banking. The rest of their prospectus just received is well above my head !!! You can say that it looks as if these property funds have done very well to date, but past performance ..... blah blah. Query are they past their sell by date ! Many thanks
 
A vast new tax concession to tempt businesses into 'commercial realty investment' was announced today on the UK national news (I don't have a specific link - it was announced on news-programmes and in the newspapers so should be traceable for detals). It might be important to consider why such an incentive is necessary when planning to invest in commercial property.
 
Very interesting ! Thank you for the 'tip-off' Marie. As my Father would say "that's a suspicious incentive" !!!!!!!!!!!!!!
 
Good site if your looking for figures on commercial property performance.

[broken link removed]
 
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