Hi there. In one word? Disappointment.

PP failed to manage the SPVs effectively even in a better than expected property market.
They also failed to boost liquidity after they got acquired. You cannot easily sell in the secondary market, and because most investors want out the discounts are massive. Hopefully they can achieve good prices as properties are being sold in the open market. Most properties have entered or are entering now their 5-year window.

I see that Property Partner is now re-branded to London House Exchange. What’s your current take on them since your last article?

Hi Tom, good shout. I wrote my latest update in September here: Property Partner Investing 3 years later.

The gist of it is that Property Partner got acquired by a US company. They lowered their fees and promised some new investments, but I haven’t seen anything new to date.

My personal portfolio has been hit harder than the average one because 1/3 is in student accommodation. Excluding this it has returned 4% annually, but with PBSA I am at a small loss.

It’s a good reminder I’ll have to write a new update with more details soon! Since last time I wrote, the average PP property is recovering.

2 years on from this article, I’d be interested to hear your thoughts on PP given the current climate.

Sounds like a plan… Let me know how you get on! I’m thinking about whether I should top up now or not. Will wait for the new dividend announcements soon.

Can’t blame you, Kryspin. I think the low liquidity is definitely an issue, especially if we’re talking amounts higher than £1,000 per property. PP should incentivise market makers by providing extra cashback there. I remember they made an effort which clearly wasn’t good enough.

Personally, my exit strategy is to wait out the 5-year mechanic as the selling record is actually surprisingly good: https://www.propertypartner.co/s#/selling-record
I’m not adding an extra £10,000 this year as I initially planned but I’m not exiting either. Especially with my PBSA properties, it’s a wait and see approach (albeit with a high opportunity cost).

I am now exiting Property Partner.
This is now clearly bad investment
Main reasons
1. Lost trust after introduction of fees
2. Suspension of dividend payments despite boom on property market
3. Low liquidity

I am now cutting the losses- not so much capital loss as opportunity loss. I could have had much better return elsewhere.

Good luck
Thank you for your efforts

Kryspin

That’s great Weenie. Having loyal tenants that pay on time is priceless!