One of the most common questions we receive from potential investors is: Can I exit an investment if I need to access my money? We completely understand, life changes and we all value flexibility. It’s also particularly understandable for investors who are used to more liquid asset classes.
The short answer? Each of our Funds will have a specified exit date (usually five years from Fund commencement) and your investment should be considered illiquid until then. But let’s explore why this is the case, how our investment structure works, and what options are available for investors who may need to access their capital.
Why are commercial property investments illiquid?
Liquidity refers to how quickly and easily an asset can be converted into cash. Investments in commercial property syndicates, like those managed by AGEM, are designed for long-term wealth creation rather than short-term liquidity.
Unlike stocks, which can be bought and sold almost instantly, or term deposits, which can have fixed withdrawal dates with a shorter horizon, commercial property syndicates involve pooling investor funds into high-quality properties that generate stable, passive income over time. This structure provides strong returns but means investors can’t simply ‘cash out’ at any time.
When can investors exit?
While investments with AGEM should be considered illiquid, we do provide an opportunity for investors to exit under certain conditions:
- After five years, investors have the option to exit the Fund with their initial investment + capital growth. Investors who wish to exit must make their units available for sale to other unit holders within the Fund as a first right of refusal. In the event this isn’t successful, this will trigger the sale of the property, and all investors will exit the Fund.
- If an investor wishes to exit prior to the Fund’s five year anniversary, they can make their units available for sale to other unit holders within the Fund or external investors. This can be led by the individual or we can assist in facilitating this by offering units to our investor base.
Tailored strategies to suit your needs
We understand that every investor’s circumstances are different. While our investment model is built around long-term wealth creation, we encourage open conversations about your personal financial needs and goals. If you’re considering an investment with us but have concerns about liquidity, we’re always happy to discuss strategies that may align better with your financial planning.
The trade-off: Liquidity vs. stability and returns
The illiquidity of commercial property syndicates is also what makes them so attractive. Unlike volatile markets where prices fluctuate daily, commercial property offers:
- Consistent rental income from high-quality tenants
- Long-term capital appreciation
- Lower correlation to stock market fluctuations
- Tax benefits that enhance net returns
Investors who commit to a long-term strategy often reap the benefits of stability, passive income, and capital growth that outweigh the need for short-term liquidity.
If you’re seeking an investment that delivers strong, stable returns with a long-term horizon, AGEM’s commercial property syndicates could be an ideal fit. While these investments are not designed for frequent trading or quick exits, they provide a reliable path to wealth creation through expertly managed commercial properties.
Have more questions? Please don’t hesitate to get in touch, we’re happy to chat.
