Helmsley aims to continue success of property syndicates

The Helmsley Group, based in York, buys properties on behalf of syndicates of private investors and pension funds, which receive a proportionate share of the rental income and any long-term rental and capital growth.

Half of the properties it syndicated last year were in Yorkshire. The firm had a record year in 2010, investing and syndicating £11.5m.

Ian McAndrew, director of the Helmsley Securities division, said: “Private individuals and their financial advisers are increasingly recognising the benefit of the secure returns and the spread of risk that commercial property syndication provides especially as our acquisition is all cash and we have no gearing.

“We ensure the properties have strong tenants on long leases with no early breaks and deliver good returns of around six per cent to seven per cent per annum.”

The company acquired six properties in 2011, three of which were in Yorkshire. These include the £3.74m Emerald House syndicate in Wakefield, let for 15 years to the Secretary of State for Local Government and Communities, and the £1.86m Pets at Home syndicate in Bridlington.

A third property in York has been acquired for £1m and will be available for syndication next month.

Other investments include a retail outlet in Cheshire, an industrial unit in Lincolnshire and a commercial office building in Suffolk.

Mr McAndrew added: “We are always interested in investing in the right properties in Yorkshire but we do operate nationally – this ensures our clients build a balanced investment portfolio both in terms of geography and property sector.

“We are pleased with our activity in 2011 and look forward to meeting the increasing demands from new and existing clients in 2012.”

Unlike many other property portfolios, Helmsley Group’s properties are bought with cash, so there is no reliance on borrowing and the vagaries of bank lending. The firm claims that with a minimum investment of £25,000, investors can spread their risk across a range of properties and remain in control of their own investment portfolio.