Sedulo Property Club sources high-quality commercial properties specifically targeting assets with high-end blue-chip tenants on long-term leases.
The Club’s acquisitions will focus on recognisable brands such as Starbucks, Burger King, SIXT, PureGym, Costa Coffee, Papa Johns and Greggs. Properties range from retail units including food chain and coffee outlets through to petrol stations and drive-through units.
The offering allows members to benefit from the income and capital growth generated from a diversified holding of commercial property. Returns are underpinned by long, and typically new leases with excellent tenants.
Commercial leases are typically 10 to 25 years in length and often feature upward-only rent reviews. Landlords can rely on a known income as leases with public limited companies or similar tenants generally feature strong covenants to protect the income of the landlord.
The core focus around the club is to acquire properties with tenants which all fall in line with strong brands, all of which align themselves to having a retail outfit and protect themselves from anything that can be replicated online and is deemed either consumer essentials or affordable desirables such as coffee.
The club works alongside an established asset manager and property developer who deliver value; many of the properties will have an enhanced value in terms of having planning approved or a lease renegotiated.
The Club intends to hold the properties for five years upon which the sale proceeds will be distributed to its members.
Managing Partner of Sedulo, Paul Cheetham, said:
We are delighted to launch the Property Club. We have completed on a number of transactions lately on behalf of our clients and there has been a lot of interest. That said, the Property Club will allow us to reduce the minimum entry-level to take advantage of this opportunity, but also allows us to act quickly when properties come to the market.
It is a natural evolution of our growing service portfolio to provide additional services that would be attractive to our client base and it’s exciting we can do this with blue-chip tenants providing fantastic covenants.
To register your interest in the club and want to remain notified of opportunities, click here.