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Sentinel Property Group and Sentinel Retail Trust

Discussion in 'Commercial Property' started by DanW, 4th Sep, 2015.

  1. DanW

    DanW Well-Known Member

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  2. blw101

    blw101 Member

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    Can't speak for sentinel specifically, but for a bit of a guide to a variety of unlisted property funds available for investment check out the below.

    https://www.pir.com.au/unlisted
     
  3. DanW

    DanW Well-Known Member

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    Thanks mate I'll have a look

    I'm going to check out the sentinel options a bit more too.
     
  4. MBAIG

    MBAIG New Member

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    Hi Dan,
    Newbie here.Not an early bird but still looking out for the proverbial worm.
    I am looking at the Sentinel group too and their latest offerings.
    Any recommendations will be appreciated
     
  5. DanW

    DanW Well-Known Member

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    Hi mbaig

    I haven't invested yet, I'm waiting for their next property and will analyse what they are buying when it comes.

    At the moment my smsf is still all shares (unfortunately!)

    There is also another thread on here about property trusts as well.

    Some risk involved with their loans if something like the GFC happens again can lose a lot. So I'm only going to invest less than 10% net assets.

    Fill in the enquiry form on their site and you can ask questions when they call you.

    You need accountants certificate to certify sophisticated, either 2.5m net asset or 250kpa gross income (my accountant includes rents in this)

    Minimum 100k invest
    To exit the investment can be difficult, so a 5+ year term must be suitable. The returns have been good historically but they are pretty much a post-gfc record.
     
  6. Player

    Player Well-Known Member

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    I just received an email from Sentinel as I am on their list however haven't invested with them as such.

    My problem is that they amalgamate assets into various trusts. I am comfortable with one asset (upon which due diligence can be undertaken on a specific basis) per trust. Also the latest home maker offering from them has a gearing level of 60-65 %. For non liquid investment this is very high in my opinion. What happens when rates rise or security covenants are changed as far as interest coverage or asset re-valuation? Also read their information memorandum's very carefully and especially the trust deed. I find their out performance fees to be excessive. I nearly invested in one of their offerings a while back (The Rocket building in Robina). Great asset and locale however the trust deed put me off big time. In the end they didn't acquire the whole thing anyway. They went halves with another property trust firm.

    I have invested in unlisted property trusts in the past and currently hold two. One is a shopping centre and the other an A grade office building in Parramatta which just settled. I have met with the manager and spoken over the phone a few times. It is a small boutique firm and I am very comfortable with the trust deed and the assets they secure. The net returns are suitable for me and the building write very handy. My investments though are multiples of six figures. For those with much less to invest look at listed offerings.

    In the past I have held numerous listed REIT's which I sold down heavily in February this year as I did with most of my share portfolio. These might be more suitable for those who require liquidity but understand the underlying performs like a share; read volatility. Unlisted trusts don't have the volatility of the listed counterparts. In the listed space I only hold National Storage and Finbar. The latter is a bit of a REIT and a developer type stock..

    Those looking in this space whether it's Sentinel or others must be very comfortable with a lack of liquidity and I urge you to read all PDS or IM's carefully. I find that the calibre of buildings worth investing in usually start at $100,000 minimum. Most require you to be a sophisticated investor under the definitions of minimum net worth and/or minimum annual income for preceding two years which needs to be certified by your accountant.
     
  7. DanW

    DanW Well-Known Member

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    Thanks @Player that's great info!
     
  8. MBAIG

    MBAIG New Member

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    Thank you Dan and Player,
    Sentinel has come out with a new offering and seems they have another offering in the pipeline.
    Will go through the trust deeds though.
     
  9. Traders International

    Traders International New Member

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    thankyou for the feedback. I was looking at investing with them also. Its great to hear your understanding as I'm a new investor.
     
  10. ComPropAgent

    ComPropAgent New Member

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    @Player
    I am really interested in what your issues with the trust deed were.
    Full disclosure I am currently looking at starting up a unlisted property fund and have found certain aspects of Sentinel's offerings to be very attractive, monthly distributions, management fees based off rental (not sure about this anymore), and the assets they invest in.

    However when I was watching some of the promo vids from sentinel's CEO/managing director I was very concerned with his attitude towards finance/gearing, granted when rates are going down you can be bullish, but if I remember correctly he stated that he borrows as much as he can from the banks/lenders.

    Hope this doesn't hijack the OP's thread but it is a very interesting topic
     
  11. Player

    Player Well-Known Member

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    As mentioned in my post, it was the way the outperform fees were scaled and structured in that particular investment.

    They are quite aggressive with gearing as you have discovered from their videos. I have a feeling that with circa $1 billion in assets under management they might be looking at listing.

    As an unlisted investment however I also don't like how they lump other assets of a similar nature together. With any investment such as this, to my modality of thinking, due diligence is done on an asset not on a portfolio. If investors prefer the latter they should look at listed REIT's.

    Merely my 0.02.............................
     
  12. ComPropAgent

    ComPropAgent New Member

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    IMHO he seemed a lot more than aggressive about gearing, though it is easy to see why he does it... 11% monthly distributions!!! Sounds fantastic when you compare it to other investments.