News } TBK Capital

Procrastination is a thief of time

The other day I was thinking about how the New Zealand economy has performed over the many months just prior the last election through to now - and for some reason the phrase “procrastination is a thief of time” came to mind.

Now I've got schemes
And you've got schemes
Let's get together and dream some dreams
Let's go
Times a wastin'

Time’s a wastin’
The other day I was thinking about how the New Zealand economy has performed over the many months just prior the last election through to now - and for some reason the phrase “procrastination is a thief of time” came to mind.
There was the initial natural pre-election nervousness, followed by the “new kid on the block” choice of prime minister, and what she might do, and without many hints so far, but finally now, according to the latest OECD Economic Survey, everything looks pretty good.
The survey’s a big read, but two key objectives for our country are to improve “well-being” through better migration and housing policies. Leaving aside the former, and yes I’m pleased to see anti exploitation policies being suggested in the document, I’m delighted to read the observation that “Unnecessarily restrictive and complex land-use regulations have inflated land and house prices, disproportionally affecting construction of affordable housing.”
The rather sensible solution suggested is to replace “strict regulatory containment policies (such as restrictions on multi-dwelling units, minimum lot sizes, density controls and minimum parking requirements) with clear rules around overshadowing building size according to location and green spaces.”
Another practical recommendation is to “Re-focus KiwiBuild on enabling the supply of land through aggregating fragmented land lings and de-risking development sites.” And to “Give greater priority to new rental housing.”
Business outlook
It looks like business is sick and tired of feeling sick and tired. reports a recent survey seems to be saying a net 31% of businesses expect a deterioration in general economic conditions over the coming months. (Well I would have said 69% didn’t expect a deterioration, but maybe that’s just me).
They say “Surveys can be open to political influence in the sense that they can be seen as a 'protest vote' from businesses. And it's true that generally business confidence has been down since the Coalition Government came into power towards the end of 2017.
“But when businesses talk about their own prospects and pulling back on future activity - that's when a downbeat mood can become a self-fulfilling prophesy.”
Well that’s not what I’m seeing, neither is our sister company Tabak Business Sales. In fact both of us have seen a recent increase in confidence and activity over the last few months. You can see some of the Offers Tabak has here.
And talking of Offers you can see most of the current investment opportunities we have on our website. Here’s a brief summary of the current state of these.
See our Opportunities newsletter here. Since the IM came out Liquidstrip has entered into confidential discussions with a JV partner of consequence for waste water treatment in New Zealand and Australia, and with medium term opportunities in Asia. This is where its true potential for this business lies.
Originally designed for the separation of water from solids for dairy farms, and 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 well overdue product. For copy of the IM and a copy of the test results reply to this email or give me call.
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 solved the matter of land supply by partnering with noteworthy developers, and 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 Village
Many of you reading this will recall we promoted investment in a License to Occupy Retirement Village and Rest Home in Paeroa. This is now fully subscribed. There are significant tax incentives associated with retirement villages. The development profit is tax free, as is the initial sale of the Licenses to Occupy units which are also not taxed on any profit received on their transfer to new residents.
The promoters of the Paeroa village are now about to develop a 220 unit retirement village, with a 60 bed aged care facility in Christchurch. The site 1s 12.45 hectares of flat residential zoned land on the main highway. The promoters/owners of the venture have an unconditional agreement to purchase the land at the end of October.
To facilitate the purchase they are looking to raise capital of $5 million by the issue of 50 shares at $100,000 per a share which will represent 50% of the ownership of the venture. Of the $5 million raised, $1 million will secure the land and $4 million will provide the equity to proceed with the development. Debt finance of $12 million to secure the land and complete the development has been arranged.
On completion the value of the finished village shows a development profit of $12 million - tax free. Over the 7 years following completion and sale and resale of the License to Occupy (LTO) units the Village is predicted bring in an annual income of $7 million per annum to its owners. This Offer is not yet on our website and the IM is in the process of being prepared. To ensure you receive a copy reply to this email or give me call.
Manuka Oil – harvest and oil extraction
See my previous newsletter here. There’s been a continuing development in this project which has 800 Ha of fully grown Manuka just waiting to be harvested and the Oil extracted. We’re now in discussions with an experienced distributor in Australia that’s eager to become involved, and with a New Zealand based operation that has a distribution agreement to export the Manuka Oil to the United States.
There is an opportunity for an investor to become part of this by providing a relatively small amount of capital to update the existing distilling equipment, and provide new equipment to streamline the harvesting and increase the production of the Oil.  For further information reply to this email or give me call.
Other Offers coming up
Capital raising ventures on our books now, include a company that specialises in the design and manufacture of large scale containerised power reticulation and energy storage systems, and a unique New Zealand owned and designed water free sunscreen and skincare product.
Both these businesses have their products in the market now.
Want to know more?
If you’d like to know about the Offers listed above, or any others that may be coming up, reply to this email or call me on +64 21 902 901.

Any reference above to 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.


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


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