Opportunities Update - September 2019
As we head into the last quarter of 2019, and reflect on the year to date, I find it difficult to feel disappointed in the economy, and the immediate future for business and property.
As we head into the last quarter of 2019, and reflect on the year to
date, I find it difficult to feel disappointed in the economy, and the
immediate future for business and property.
And a recent article in interest.co.nz which headlines “The number of new dwellings being consented in Auckland has doubled over the last five years” seems to support this view.
So I thought it appropriate to provide a brief summary of the investment opportunities we have available through TBK Capital. Note these can only be offered to those who qualify as wholesale investors – see note at bottom of this newsletter.
DryNZ
This is a business
we have been associated with for some years now. It is a privately
owned company in Waiuku, south of Auckland, which sources New Zealand
grown fruit and vegetables of all grades, and dries them into powders,
pieces and slices. DryNZ is exporting to Europe and is the New Zealand
fruit ingredient supplier for the tea brand ‘Ti Ora’.
DryNZ is now raising capital by offering new shares in the business.
This will used to purchase a new European state of the art dryer to meet
increased demand - which will increase their drying capacity by 300% -
and for working capital requirements.
Other uses of the funds include new plant and equipment and a factory
upgrade. A copy of the IM describing the Offer will be available soon.
If you’d like a copy reply to this email or give me a call.
Liquidstrip
See our original Opportunities newsletter here. Since the IM came out Liquidstrip Limited
has entered into confidential discussions with a JV partner of
significance, for waste water treatment in New Zealand and Australia,
and for medium term opportunities in Asia. It’s this export business
where the true potential for Liquidstrip lies.
The equipment was originally designed for the separation of water from
solids for dairy farms, followed by concrete disposal in the
construction industry. There are only so many dairy farms or buildings
under construction in New Zealand, but there are plenty of rivers,
harbours and beaches here, and all over the world, being contaminated by
waste water disposal.
I think this is a marvellous and well overdue product. The attraction
for customers includes the problem of high disposable cost now, and for
you the investor, buyers in the number of different industries that will
either have to start paying for these costs or incur heavy compliance
fines for incorrect disposal.
This Offer has already received an excellent response. For copy of the
IM - which is now already out of date as a result of renewed support
from councils - and a copy of the revised financial projections, reply
to this email or give me call.
Pet food supplements
Bestmate PetCare
is a new client that has developed a range of pet food and vitamin
supplement beverages for animals. It has also had assistance from Massey
University’s Nutrition Department in Palmerston North. It is a business
that has developed an impressive marketing plan before finalising its
range of products, and has already identified large international
markets including New Zealand, Australia, the UK and Europe, Asia (China
and Japan) and North America.
The first product, a vitamin supplement
beverage with natural flavours, is completed even to the detail of its
packaging, and the business has a clear 4 year international marketing
strategy. It is now raising initial capital to set up the first product
runs and finalise distribution and marketing.
This is a business that immediately impressed me with their pre-launch
product and marketing research - and I can tell you I’ve seen a few over
the decades I’ve been in investment banking. Further information call
me or send me an email and I’ll get back to you with an overview. An IM
is currently being prepared.
Meeting the Demand for Affordable Housing
See our Opportunities newsletter here.
FirstBuild has a proprietary system that enables them to build the
components of their quality modular houses in a factory. This provides
several advantages over traditional building, and houses can be produced
in greater numbers with a faster build time and a higher and more
consistent quality. Streamlined raw material supply and manufacturing,
together with onsite construction, means the delivery cost is well below
the current levels in the industry. Bad weather is not an issue.
In addition FirstBuild has answered the matter of land supply by
partnering with noteworthy developers, and solved the delays around
council consent by providing a standard (NZS 3604) design solution.
This is a proven system in the U.S.A, Europe and Asia. However research
undertaken by FirstBuild shows their house design, delivery and build
method, is unique in New Zealand. They have put together a complete
business model that integrates council consent, the supply of land, raw
materials, construction and finance. For a copy of the IM reply to this
email or give me call.
New Retirement Villages
Amberley - Christchurch: We’ve already hinted at this Offer in our July Newsletter,
have received numerous expressions of interest, and we’re now pleased
to advise that the loan finance required to proceed with the village has
now been approved and construction will proceed. All those of you who
have shown interest will have just recently been sent the documents
required to invest.
To remind you of the Offer, investors will belong to a limited
partnership which will raise $1,000,000 by the issue of 100 shares at
$100,000 per share of which 50 shares are now available. The promoter,
Tim Bartells, will take up the balance.
Applicants will be required to a pay 10% deposit on application which needs to be made by 12th September. This will be held in a solicitor’s trust account. The balance of the investors’ investment will be required on 25th September.
If you wish to participate please reply to this email for a copy of the
IM and an indication of how many $100,000 shares you would like to apply
for. If you have any queries, or would like to speak to Tim Bartells,
call me or reply to this email.
Auckland – Thames Valley: We’re also in
discussions with another promoter looking for capital and seeking
consent to build a retirement village in the Thames Valley. This will be
up to 350 units, together with an adjacent residential development. If
that’s of interest please let me know and I’ll keep in touch with you as
the project progresses.
Funeral Home in Gisborne: Well I guess I could
call this the ultimate retirement village, but our client is building a
purpose built Funeral Home across the road from Gisborne’s public
cemetery. It will have seating for up to 350 people plus a smaller
auditorium for 50 people. Bank funding has been approved for
construction and the intention is to provide an annual return to
investors.
The tenant has committed to a 15 year lease and will buy out investors
within 4 years. This gives investors an exit plan and a “development
margin”, being the difference between the cost now and the market value
then with a tenant in place. Excellent returns are forecast for this
much needed facility for the district.
Bridging Finance for hotel development
As readers of our newsletters include lenders as well as investors,
we’ve got somewhere you could lend a significant amount of money on
first mortgage over land for a few months at a good interest rate.
And then if you then wished, you could take up the opportunity to put it
towards a consented large hotel development in the South Island and
share in the development profit. Further information is available under
Confidentiality Agreement.
Manuka Oil Plantation
I’ve mentioned this Opportunity before. If it interests you in principle – 800 hectares of fully grown Manuka ready for harvest near Manganui
- then we should have a conversation. We have already had meetings with
a distributor in Australia with a proposal that deserves more detailed
discussion.
Want to Know More?
If you’d like to know more about these and other offers we have, reply
to this email with your phone number or give me a call on +62 21 902
901.
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The above investment is not an offer of financial products that
requires disclosure under the Financial Markets Conduct Act 2013 (Act)
and is available only to wholesale investors as defined by that Act. It
is intended for distribution only to selected people to whom, under the
relevant laws, it can be lawfully distributed. It cannot be distributed
in any other jurisdiction, or to any other people. It is not an offer or
solicitations in any jurisdiction in which such offers or solicitations
are not authorised, or in which the person making such offers or
solicitations are not qualified to do so, or to any person to whom it is
unlawful to make such offers or solicitations. Any representation to
the contrary would be unlawful. No action has been taken by any person
that would permit a public offering in any jurisdiction where action for
that purpose would be required.
Cheers
John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz