Brian Caldwell is one of four founding Directors at DABS Consulting Ltd, the commercial property investment consultants specialising in Property Limited Partnership investments.
During Brian’s successful career at Bayleys Commercial North Shore, many of his clients wanted to invest in high quality and yielding commercial property. These same clients wanted their investment managed for them, with investment funds spread over a varied portfolio of locations and tenants. In 2014, Brian teamed up with Daryl Devereux (also ex-Bayleys), Sean Parsons and Alan Hall (chartered accountants), who all had clients with the same investment goals, and DABS was formed.
Property ownership is not without risk but the multi-disciplined DABS team combines in-depth commercial property market knowledge and accounting expertise to undertake all the due diligence, acquisition and ongoing management to provide a monthly return on your property investment.
Channel Magazine: What is a Property Limited Partnership?
Brian Caldwell: Property Limited Partnerships are used to combine each investor's funds to provide a larger amount of capital to acquire an investment property.
CM: How do you select a new property?
BC: There are criteria for all our purchases.. However we recognise that each property is different and is considered on its own merits. We consider properties in quality locations, usually in cities with forecasted incremental population growth, good access to transport links and/or planned investment into infrastructure or industries. We invest in locations where there is long term growth and where businesses and people want to live and work. We will also forecast potential capital investment having regard to the age of the building, state of repair and services being offered. We then consider the type of tenant or tenants. A reputable tenant with a long lease is desirable to ensure a reliable cashflow. However, a building with several tenants and varying lease lengths can provide additional security de-risking the investment. There may also be long term planning considerations like re-zoning which could provide additional capital value. There are many aspects which form part of our due diligence process.
CM: How much money would I need to invest?
BC: Our investors typically invest amounts from $250,000 and above. They are experienced investors or have appropriate qualifications that enable them to fully assess the merits of the investment based on the information we provide. We encourage prospective investors to call and discuss their financial goals.
CM: What return would I receive?
BC: You would receive a monthly return which is calculated as a percentage of the initial capital invested in the property. The monthly distribution usually ranges between 6% and 9% per annum. The level of the monthly distribution depends on factors which include initial purchase price, establishment costs and rental income. We set out the expected monthly distribution in the information memorandum when investors are making initial enquires about the investment.
CM: How is the property managed?
BC: DABS is contracted under a Management Agreement to manage the property. This ensures a high standard is maintained and includes rent collection, engagement with tenants, maintaining and servicing the property and financial reporting.
CM: How do I sell my share of the investment?
BC: Your investment can be on-sold. On your behalf we will offer the option to purchase to existing investors. It is common in property partnerships for the remaining investors to purchase another investor's share. The alternative is to offer the investment on the secondary market and there is a preferred platform we recommend to our investors.
CM: What are my tax obligations?
BC: Each investor is responsible for their own tax affairs. At the end of each financial year, being 31 March, financial accounts are prepared for the property partnership. The taxable share of each investor's income is provided in detail. The investor is responsible for completing a tax return as an individual, a trust or a company.
CM: Why choose DABS?
BC: We are a boutique business with specific skills covering all aspects of commercial property ownership including selection, management, accounting and financial reporting. We also have external expert resources to call upon if required. We do not have large overheads so we can be patient and select the property which best suits our investors' criteria.
For further information or to discuss our current investor offer please contact:
Brian Caldwell – Director
027 481 5505
Lara Weaver - General Manager
021 230 5989