Limited Liability Partnership
How Does it Work?
It is often difficult for an individual private investor to make direct commercial property investments and we are passionate to make it possible.
Lewis Innovative Investments solution is two-fold: firstly, to use clients’ savings and secondly to form a Limited Partnership to get into larger, more secure and financially attractive properties. Investors such as pension funds can participate in the partnership via a Trust.
The Limited Partnership will be used to purchase the investment as it offers significant advantages over other possible structures.
The use of Limited Partnership route is beneficial as far as taxation is concerned, when compared to a Limited Company.
Secondly, the structure of the Limited Partnership is such that each investor will be a limited partner enjoying the benefit of limited liability. It is a requirement that in addition to the limited partners, there is one general partner that has unlimited liability. In purchasing this property, the general partner will be Crescent Investments (Bournemouth) Limited.
The liability of each limited partner will not exceed the amount of their initial investment.
The general partner will be responsible for the day to day management and operation of the partnership. The officers of Crescent Investments will be partners in the firm of Rawlins Davy, the solicitors acting on behalf of the Limited Partnership in the purchase of the property.
The property will be purchased and the bank mortgage taken out in the name of Crescent Investments (Bournemouth) Limited, which will hold the property on behalf of the Limited Partnership generally. Crescent Investments will not be an investing member of the partnership.
The income and capital profits of the Partnership will be divided between the limited partners in proportion to their respective capital investments. Crescent Investments will not be entitled to participate in the profits of the partnership, although it will be remunerated for acting as the general partner.