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We work with independent financial advisors

Give your clients access to outstanding investment returns

Investment options for IFAs

Investment Yields - 1 June 2020
Source: Thomson Reuters, Macquarie, Fawkner Property, Bloomberg

The 'Search for Yield' is tougher than ever for Financial Advisers and their clients. Fawkner Property Trusts provide reliable income to client portfolios on a monthly basis.

Given that Global Developed Market Interest Rates are basically all below 1.00%, finding reliable fixed income opportunities which will provide a return to clients is difficult. This is particularly difficult on an After-Fees basis.

Fawkner Property helps alleviate Clients Income issues by focusing on Essential Services and Long-WALEs to provide a defensive income stream to portfolios. Trusts are accessible via Platforms and Direct.

High Income to assist clients in 'Search for Yield'

Retail and Wholesale Investment Opportunities

Recommended ratings by independent researchers

Secure outstanding investment returns for your clients
7 years of reliable investment income paid monthly, above term deposit rates
Commercial property portfolios with a long weighted average lease expiry
National corporate tenants ensure income stability
Assets chosen because they represent the best value at any given time in the market
Talk to an expert

Our team is ready to help you with any questions you may have about our commercial property investments.

Contact us

How we work with financial advisors

  • Fawkner property has an experienced distribution team which is able to help with any queries
  • While Fawkner is based in Melbourne, we service financial intermediaries such as Independent Financial Advisors across Australia
  • Our investments have positive ratings from independent investment houses, with reports readily available by request
  • We are happy to work with your investment platforms, and we meet most IFA APL (approved product list) requirements
  • Our investor relations team will work with advisers to ensure all the requirements of their clients have been met
  • Fawkner offers both wholesale and retail investments to financial advisers depending on theirs and their clients requirements

How we work with financial advisors

How we work with financial advisors

Support with customer queries

Fawkner property has an experienced distribution team, and we are always able to help with any queries from you or your clients.

We work with IFAs across Australia

While Fawkner is based in Melbourne, we service financial intermediaries such as Independent Financial Advisors across Australia.

Positive, independent ratings

Our investments have positive ratings from independent investment houses, with reports readily available by request.

We work with your investment platforms

We are happy to work with your investment platforms, and we meet most IFA APL (approved product list) requirements.

We ensure client needs are met

Our investor relations team will work with advisors to ensure all the requirements of their clients have been met.

Options to suit your clients

Fawkner offers both wholesale and retail investments to financial advisers depending on theirs and their clients requirements.

Reliable investment income

Our trusts provide regular, reliable monthly income for your clients' investment portfolios. This provides a defensive income stream and is an excellent diversification strategy.

Frequently asked questions

What types of commercial property does Fawkner Property look for?

There is limited information for the commercial property investor.  Despite vendor statements, with more or less disclosure depending on the jurisdiction, and registered leases (other than in Victoria), there are many side deals between landlord and tenant and, except in major shopping centres, the trading position of a commercial tenant is difficult to find out.

Tenant demand for commercial property is what economists call a “derived demand” – meaning that the commercial real estate is used in the production of goods or services for sale by the tenant.  Understanding the drivers of the business of the tenant gives insights into the prospects of the tenant and the reliability of the rental stream.  It is not much use having fixed annual increases in rent if the higher rent becomes beyond the capacity of the tenant to pay.

Becoming knowledgeable in the business of particular types of tenants is exploiting the lack of information that pervades commercial property markets.

While Fawkner Property people have long experience in commercial and industrial property broadly, we have developed market leading expertise in motor vehicle fuel and convenience retail, as well as early learning.

How secure is the rental income stream from tenants?

One of the risks of commercial property investment is tenant risk.  This includes the risk that:

  • The business of the tenant fails and the tenant is unable to continue to honour the lease obligations
  • The tenant completes the current term of the lease but does not renew
  • And there is a market review and, based on the business of the tenant, the rent reduces

These risks and the way in which Fawkner Property deals with these risks is set out in a separate section of the disclosure document devoted to risks of investing.

How does a commercial property syndicate compare to a residential property investment?

There are some important contrasts:

  • The syndicate is professionally managed, so you do not need to be involved in hiring managing agents, leasing decisions, capital expenditure decisions, and owners’ corporation meetings.
  • Capital expenditure is allowed for by the manager, so you will not need to come forward with more money to upgrade the property.
  • If there is a loss, your downside is limited to your investment, whereas in a geared residential investment, the lender has full recourse to your other assets.
  • Commercial properties are not subject to residential tenancies legislation, which limits the field of action of the landlord.
  • While residential property leases are for a maximum of one year, with a market rent review each year, commercial property leases are longer – sometimes longer than 10 years – and have fixed or CPI increases each year, giving greater certainty of income.
  • Dealings with commercial tenants are based on business principles, whereas dealings in relation to the principal place of residence of a tenant can have an emotional overlay.

Our performance history

Performance History – 31 January 2020

Return (%)
35%
30%
25%
20%
15%
10%
5%
21.50%
21.60%
17.25%
30.60%
15.70%
18.40%
11.40%
10.00%
10.50%
10.60%
8.50%
23.00%
8.20%
11.10%
3.00%
3.00%
11.00%
11.00%
8.75%
7.60%
7.50%
7.30%
8.40%
7.00%
2011 (Sold)
2011 (Sold)
2013
2014 (Sold)
2015
2015
2015
2017
BP Seaford, VIC
BP Vermont, VIC
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust

Our current opportunity

An investment supported by strong national brands