I have had some expressions of interest from individuals who are interested in joining a syndicate to invest in property in Zhuhai. The current level of interest, although encouraging, is not sufficient for me to invest resources in setting this up. The mininimum economic scale for this venture would be the equivalent of one million pounds sterling.

It seems to me that a syndicate will have at least the following benefits:

1. there will be some additional liquidity, as new members join, and existing members wish to increase, or decrease their stakes,
2. the syndicate will have a stronger negotiating position will sellers, and be able to cover the cost of one or more dedicated employees in China to manage the properties, in terms of maintenance, and administering rent collection,
3. by keeping the properties in the name of the syndicate, rather than holding them directly, the various transaction and other taxes levied by the Chinese authorities on change of registration will be avoided,
4. it will be possible to negotiate much cheaper fees with lawyers, notaries and estate agents, at least on a per-property basis,
5. it may be possible to raise debt finance to increase gearing, either here in the UK or (more likely) in Hong Kong
6. setting up the appropriate corporate structure in China, with holdings in HK or elsewhere would be economic, would be possible, with potential further tax saving potential,
7. the purchase of a complete blocks or even whole developments would become possible, with benefits in terms of controlling general and external maintenance, and having the option to completely re-fit older blocks, which are often in the best locations, but have suffered from poor original fittings,
8. a syndicated structure, incorporated, will permit investment through a SIPP or SSAS, which may be very attractive to UK taxpayers,
9. scale will make it economic to invest more time in selecting suitable premises, more frequent visits, and the possibility of diversifying geographically in China,
10. scale will open up the option of investing in commercial and retail space.

Please contact me via this feedback page [1] if you are interested in finding out more.