Autumn 2021, in partnership with Syndex.

Many people believe that commercial property is too expensive to buy outright, so they stick to what they know – residential investing.

But as interest rates look to stay at historic lows, Kiwis are exploring a range of commercial property structures, says Ross Verry, chief executive of Syndex.

On the Syndex platform, investors can buy and sell shares or units in investments like rural land, syndicated commercial properties, investment funds, and forests.

“We’re seeing gains in all our markets,” he says. “In particular, we’ve seen increased investment in horticultural land as a property class.

“Interest in kiwifruit has been extraordinarily strong over the past 12 to 18 months and this continues. With the exceptional results, they have reason to continue.

“It’s a really good way for people to get exposure to that horticulture sector. With a strong global focus on health, nutrition, and wellbeing, there are some pretty good returns for owners and operators being delivered.”

Often these investments are structured as commercial property schemes, where an investor has the opportunity to own the land where a horticulture operation is based. They derive their income from a lease arrangement with an expert operator.

Syndex has listed opportunities to invest in kiwifruit, wine and manuka forests, along with other investments. Horticulture is a relatively new class of commercial property that hasn’t always been available to invest in fractionally, he says.

Verry says fractional ownership is becoming a more popular and achievable way of investing in commercial property.

Assets under administration on the Syndex trading platform have increased 25 per cent to over NZ$3.8 billion in the last year, and the secondary market trades have also been more active.

“These increases are quite significant.

“There’s been quite a wide range of options so, depending on the investor’s appetite for risk, they can choose what suits their risk profile and stage of life.”

He says there are three main areas of property Kiwis most commonly invest in through Syndex.

“They are the primary sector, industrial land, and office buildings, which sometimes have retail attached.”

Included in the primary sector is services to agriculture. “You might be able to get exposure to a packhouse facility or infrastructure supporting horticultural or other food production activities.”

Other investment types in the Covid era that have been strongly supported are logistics and warehousing, he says.

Whether it’s primary sector, industrial or office properties, a key component is the tenant, which is key to the investors’ analysis and investment decision.

Verry says investors are turning to Syndex to buy and sell more easily.

“Private markets are historically illiquid, which was a barrier to many investors, but by offering a secondary market, we’re making private market assets more investible. A number of active investors also use the secondary market as an entry point into certain opportunities.”

Syndex also supports the issuers in the background by managing their records, running their registry, and helping them with the regulatory compliance and communication.

On the platform, investors can browse Syndex’s offerings in commercial properties and agricultural land. Go to www.syndex.exchange/markets.

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