The Power of Gearing
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These funds can be used to borrow up to an additional 50% more than the original investment to purchase a commercial property. This gearing means that the syndicate can buy property of higher value (up to 1.5 x) than the initial pension investment alone would allow, providing the opportunity for greater medium or long term gains
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Any loan repayments are met by the rent from tenants, and any surplus rent is reinvested into the fund to benefit the members (potentially a huge benefit – if you are already at maximum funding for your personal pension this would be an allowable over-contribution)
View Gearing Illustration