17 Feb 2012
The alternative presentation. [The serious one is on the web as well]
Managing syndicated properties
Sound and proactive management is an essential feature of any property investment in order to maintain maximum value of the asset.
Each property syndicate is quite independent and individually managed under your own control. Helmsley Securities, as Bare Trustee, has no mandate whatsoever and approval is always sort from you as a participant in a syndicate.
This could be a requirement to appoint agents to agree fees for negotiations for rent reviews, lease renewals, the authorization for expenditure on repairs, agreeing the strategy if a development opportunity arises or other potential enhancements to the value of the asset.
All decisions are made on a 75% majority of participants by way of their percentage holding and can be presented to you in a number of ways. They will always be accompanied by a report seeking your approval and if a major issue occurs we may call an extraordinary meeting of participants to discuss the matter in hand and seek to formalize your instructions. Participants unable to attend have the opportunity to provide a ‘proxy vote’ in this respect.
However in the majority of cases any consents required in order for us to deal with your instructions are dealt with at the Annual General Meeting which is usually held in April and is preceded by a report following our annual inspection of the property. Again proxies can be given if you are unable to attend. All meetings are fully minuted.
On initial acquisition and in order to enable us to present to you clearly the net yield you will receive for the property we include within the syndication price at the cost of Helmsley Securities Limited the initial managements costs. This is generally for a 5 year period or alternatively up to an appropriate date such as a rent review. This depends on each property individually. These fees cover all normal management items such as the collections of rents and income distribution, and the resolution required for this approval is contained within the Trust Deed which you complete for the acquisition.
In the main we instruct Colenso Property Services LLP.
Renewal of such fees on expiry of this initial period will be raised at the appropriate annual general meeting; your consent is then sort to appoint the managing agents and agree fees for a further fixed period. These costs will be deducted from future returns and of course you are free to appoint alternative agents to act on behalf of the syndicate.
