In today’s evolving market, flexibility is everything. Investors want access to high-performing assets, regular income, and the ability to respond to changing conditions—all without locking up capital for years.

That’s where an open ended fund comes in.

Unlike fixed-term funds, open ended structures allow you to enter and exit at set intervals, providing a more agile approach to building long-term wealth. For SMSF trustees in particular, this opens new doors: combining commercial property exposure with professional management and monthly income, without the complexity of direct ownership.

So, can your SMSF invest in an open ended fund that holds commercial property? Absolutely.

Here’s how it works and why it could be a smart move in 2026.

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Can Your SMSF Invest in Commercial Property?

Yes. Your Self-Managed Super Fund (SMSF) can legally invest in commercial property, either through direct acquisition or via a managed investment scheme like an open ended fund.

While direct property ownership requires navigating lending, compliance, and hands-on management, investing through a fund structure allows your SMSF to gain exposure to high-quality commercial assets without the admin burden. This means you can benefit from passive income, professional oversight, and greater diversification, all while remaining compliant with ATO guidelines.

At Exceed Capital, our open ended fund model is specifically designed with SMSF investors in mind.

Note: Exceed Capital’s open ended fund opportunities are available to wholesale investors only, including eligible SMSFs.

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Discover the Benefits of SMSF Property Investment

Investing in commercial property via your SMSF offers a number of strategic advantages:

• Tax effectiveness: Rental income and capital gains may be taxed at concessional rates (as low as 0–15%) depending on your fund’s phase.
• Asset diversification: Reduces exposure to equities and balances risk across asset classes.
• Stable income: Commercial properties often deliver strong, consistent yields, particularly in sectors like medical, childcare, and convenience retail.
• Professional management: In a fund structure, properties are acquired, managed, and maintained by experienced investment managers on your behalf.

For investors focused on retirement planning, these benefits can significantly enhance long-term financial security.

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How Buying Property Through Your SMSF Really Works

There are two main ways your SMSF can access commercial property:

1. Direct ownership: Your SMSF purchases a property outright or via a limited recourse borrowing arrangement (LRBA). This requires significant upfront capital, ongoing compliance, and direct management responsibilities.

2. Indirect investment via a fund: Your SMSF invests in an open ended fund (like The Collective by Exceed Capital), gaining exposure to a professionally managed, diversified portfolio of commercial assets.

The fund option is increasingly popular for SMSFs, as it avoids the hassle of sourcing properties, negotiating leases, and managing tenants while still delivering reliable income and growth potential.

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Navigate the Rules and Compliance for SMSF Property Investing

While investing in property through your SMSF is legal, it comes with strict compliance requirements:

• Sole Purpose Test: The investment must exist solely to provide retirement benefits.
• Related Party Rules: You can’t lease the property to yourself or a related party unless it qualifies as ‘business real property’ and meets market rent requirements.
• Borrowing Restrictions: If using an LRBA, loans must be structured appropriately and repayments maintained.
• Valuations and reporting: SMSFs must provide market valuations and maintain accurate records for annual reporting and auditing.

When investing through a fund, many of these complexities are handled by the fund manager, making it a simpler option for trustees wanting exposure to property without the administrative load.

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Work with a Strategic Consultant to Grow Your Wealth Through SMSF Property Investing & Open Ended Funds

Whether you’re just starting your SMSF journey or looking to enhance its performance, working with a strategic investment manager can help you navigate regulations, assess opportunities, and build a portfolio aligned to your goals.

At Exceed Capital, we offer open ended investment opportunities tailored to wholesale and SMSF investors. Our team sources quality commercial assets across high-growth regions, with a focus on resilient sectors, secure leases, and long-term income generation.

Our flagship product, The Collective Diversified Fund, is open ended, meaning you can invest on your terms, benefit from monthly distributions, and scale your exposure over time.

Want to learn more about how we work? Explore our Why Invest, Portfolio, or contact us about current opportunities. You can also read our latest articles on the best way to invest 500k in Australia, and how to retire early by investing in commercial property portfolios.

Financial Advice Disclaimer: This content is for general information only and does not constitute financial, legal or tax advice. You should seek independent professional advice before making any investment decisions.

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