News } TBK Capital

Finally - Some Post Election Action

In my newsletter earlier this month I hinted that in both TBK Capital and our sister company Tabak Business Sales we’re finally seeing some action.

Date Created: 25/9/2018

In my newsletter earlier this month I hinted that in both TBK Capital and our sister company Tabak Business Sales we’re finally seeing some action.
 
Well in the few weeks since then I’ve had no reason to change that view. And strangely enough this change is around the 10^th anniversary of Lehman Brothers collapse. I was reminded of those days reading Liam Dan’s article last week “Financial apocalypse not imminent or inevitable”.
 
He says “Given the gloomy nature of some commentary lately you could be forgiven for thinking the financial system is on the brink of collapse.
 
The 10th anniversary of the certainly prompted some highly pessimistic reflections.
And yet this week financial markets shrugged off concerns about emerging market debt and trade wars.”
 
So what’s the difference? As reported in Liam’s article, according to JBWere investment strategist Benard Doyle - not only is a major crash not imminent, it’s not inevitable. His view is the end of the Bull Run does not have to mean a major a financial crisis.
 
"Unfortunately the last two ends to a bull market have been crises. We had the tech bubble which resulted in very deep nasty recession, we had the GFC which took us to the brink of a depression," he said. "So investors have been trained to think a bull market ends in some sort of apocalyptic event. It doesn't have to be that way."
 
At both TBK and Tabak, we’ve seen a clear rise in confidence. Tabak has seen a market increase in interest from both buyers and sellers and at TBK Capital we’ve more requests to raise capital for expansion than we’ve had since the pre-election uncertainty a year ago.
 
We’ve now closed Air Hull and the Paeroa Retirement Village Offers, both of which are now fully subscribed. But there are others still available and more to come.
 
Retirement Villages
 
The promotors of the retirement village in Paeroa mentioned above are now about to build two more, one in Whakatane and the other in Christchurch. These License to Occupy villages can provide extraordinary profits to investors who participate in their development.
 
For a $1.2 million investment in the Paeroa village those investors are projected to get their $1.2 million back, plus a $4.4 million development profit tax free, and on completion a $900,000 annual income. And in 5 years’ time, unless they’ve sold it beforehand, they’ll have a hard asset worth $8 million. Like to see the next ones? Email or call me to be put on the list of interested investors.
 
Beach Front Development
 
Our client has acquired the opportunity to purchase eight 2 and 3 bedroom apartments - at pre-construction pricing - in a development in a growing beachside community. It consists of 37 luxury apartments and incorporates a private outdoor swimming pool and gymnasium facilities alongside public retail and hospitality venues.  The objective is to on-sell the Apartments, before completion, at a substantially higher price as set by a recently completed valuation, and he’s inviting investors to join him.
 
Only a 10% deposit is required now, which will be held in trust prior to completion. In the event all or any of the 8 Apartments are not on-sold prior to completion – when the balance of the purchase price is due – the developer has agreed to buy back those apartments and return the investors’ deposits. The return to investors over the period of the investment is forecast to be 37% on funds outlaid.
 
Manuka Oil Production
 
You can see the Offer here. Real interest in this. Expected to close soon. The structure provides an opportunity to personally attribute non-taxable capital gains and offset partnership losses against income from other sources. The tax losses arise from the incentives provided by legislation, and from losses incurred in the early years of the business.
 
Based on the limited partnership’s projected income and cash flow, and assuming a personal investment at a tax rate of 33%, the investor can expect a post-tax Internal Rate of Return of 27%.
 
DryNZ
 
Here’s a business with which TBK Capital has had a long relationship. The Company is now concentrating its focus on establishing international clients looking for products dried here in New Zealand.  New shareholders have joined the business - one of whom has become the CEO.
 
Their focus is to bring freshly dried produce to the world. The business is looking for working capital to fund the acquisition of more product to dry and its marketing offshore. A new capital raising offer is being prepared now. If this is of interest email or call me to get a copy of the next IM.
 
Fixed Interest Return – 12% p.a.
 
If you’re looking for an immediate return on your money you could look at the NZFintech offer which offers investors a term loan investment, secured by a joint registered first ranking GSA, paying 12% p.a. The business provides on-line loans to consumers in New Zealand across a number of market leading brands, with an on-line approval process providing an alternative to traditional lenders. Repayments are secured through the borrower’s agreement to have them deducted on the day they get paid.
 
NZFintech uses software technology, design and innovation to compete in the marketplace of traditional institutions in the delivery of its financial services. In order to grow its business further, it is now seeking a 36 month term loan facility, with bullet repayments, from eligible and/or wholesale investors, yielding 12% per annum. TBK Capital recently raised close to $2 million for NZFinetch.
 
Luxury Townhouse Development
 
Expressions of interest are invited to participate as an investor in the development of 3 luxury townhouses in Takapuna on Auckland’s North Shore. The valuation of the three of them on completion is expected to be over $10 million.
 
TBK Capital is in the process of arranging the debt for the development and an equity component of $1 million being sought for a 30% holding. Further information will be made available to potential investors qualified by the developer and on signing a confidentiality agreement.

Want to Know More?

If you’d like to know more about any of these Offers, and receive a copy of their Information Memorandum, email me or give me a call on +64 21 902 901.