As specialist investors in small and medium enterprises Business Partners says it is looking to improve its service and product offerings to entrepreneurs in order to meet needs.

Business Partners provides financing for the entrepreneur who already runs a viable business and wishes to buy his own premises or to invest in a commercial property, but doesn’t have sufficient security or a deposit. Business Partners assesses the investment proposal based on viability and finances up to 100% of the full purchase price, including all associated costs. The way the investment is structured is by establishing a new property company through which the property is acquired and the entrepreneur leases the property, usually at market related rentals which may cover the loan instalments and property costs. Based on the extent of the risk i.e. the uncovered portion of the investment, shareholding can be split between the entrepreneur and the investor. The shares can be sold back in tranches or at the end of the investment period at a pre-determined value or at market related prices.

"The main advantage is the facilitation of property ownership which secures tenure at a desired location," says Nazeem Martin, Business Partners executive director," and over time results in 100% ownership". With the investment resulting in capital appreciation the entrepreneur is also able to build up a ‘pension fund’, despite having no or low upfront deposit and having less than one times collateral cover.

"We believe that an SME should go through the start-up and growth phase first, before entering the property market. It is one of the final stages of development that an entrepreneur should consider. It is often the ‘pension build-up’ of the entrepreneur who over the years invested most of his or her capital in the business itself", says Martin.

"By keeping the cash flow within the business instead of in the property the entrepreneur will not drain the company’s future working capital position but will be able to make higher returns than merely leaving it in the property".

Another Business Partners property investment option focuses on the entrepreneur or developer who wants to buy as an investment or develop a multi-tenanted, commercial or industrial property. Even with little security available it is possible for an entrepreneur to obtain property such as a convenience shopping centre. The entrepreneur might have a small own contribution and might be able to obtain a bank loan secured by a first bond. After assessing the viability Business Partners could invest the remaining shortfall by taking equity in the property which can be sold back in tranches over time at a pre-determined price or market value.

"Our objective is to match the structuring of a property investment to suit the specific needs of the entrepreneur," says Martin. "We use our expert knowledge of SME and then structure the most competitive and flexible deals possible for our clients. Most importantly, as an unlisted public company, we offer custom-structured equity deals that minimise risk for new and growing businesses entering the property market or expanding their property portfolio." However, according to Martin, structuring of the investments is flexible and does not necessarily stipulate shareholding and can be based on royalty fees."

According to Martin the opportunities for the entrepreneurs who want to invest in property are many and varied. Business Partners investment scope ranges from retirement villages, private school, medical facilities, golf course, townhouse units, convenience shopping complexes, and industrial warehouses, factories and manufacturing plants.