“Property always has been, is now, and always will be the best investment.”
My first introduction to Investment Banking was back in the 70’s when I joined John Russel’s Securitibank – a training ground that has proved to be extremely valuable; especially as my initial job was as his P.A.
My first introduction to Investment Banking was
back in the 70’s when I joined John Russel’s Securitibank – a training ground
that has proved to be extremely valuable; especially as my initial job was as
his P.A.
He also used to write newsletters, and one on particular which I researched for
him, and whose headline I’ve never forgotten was “Property always has been, is now, and always will be the best
investment.”
Well we all know that, like any investment, property is subject to a number of
factors including the economy. And it has its calamities. For example 10 years
ago on December 30, 2008, the U.S. housing bubble was an important cause
of the 2007 – 2009 recession. House prices and values in New Zealand have also had their ups and downs.
There are a number of views on the immediate future of the residential market
here now, driven partly in the belief its “bull run” just can’t continue. But
whatever the immediate future, there remains a strong case for property investment
in the long term.
Of course there are multitude of ways of “investing” in property other than
your own house. The FMA here has a summary about investing in property and
issues some warnings. And if you care to Google “The
benefits of property investment” you can spend the rest of the day on your
computer, or the next month or so attending seminars.
More risky, but potentially more profitable to an investor is property
development. This falls into three broad categories, subdivisions, constructing
commercial and industrial buildings, and building apartments or houses.
Right now we’ve got some examples of all of these available or coming up in the
next few weeks. If any of these interest you then email or call me to be put on
the list of interested parties. Note participation in these offers is
restricted to investment by “eligible” investors.
Residential Subdivision
An experienced developer has obtained the right to purchase 3 ha of land in
South Auckland zoned Future Urban. This land is how currently in the process of
being re-zoned residential with finalization scheduled for March – May 2019.
The fact of the rezoning will substantially increase the value of the land, and
with the resource consent to subdivide in place will almost triple the value of
the land. Once subdivided into sections the total value is budgeted to be $28
million.
The owner of the property is a very experienced developer, who is looking for
JV partner/s to invest $1.5 million in $100,000 lots of mezzanine debt and
participate in the development though to resource consent being approved. At
that stage the mezzanine debt will be converted to shares in the development
company giving them half the development profit realised through the sale of
the sections to an experienced developer which will build and sell the houses.
While not guaranteed, such a developer may well offer the investors participation
in that process. This Offer will not be open for long due to the time frame in
which settlement of the land is required to take place, so if you’re interested
email or call me urgently.
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.
Beach Front Apartment Development
Our client has acquired the opportunity to purchase selected 2 and 3 bedroom
apartments - at pre-construction pricing - in a development in a growing
beachside community. The objective is to on-sell the Apartments, before
completion, at the substantially higher price now being asked as construction
commences.
Investors need only a 10% deposit is required now, which will be held in trust
prior to the apartments being completed. 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. This investment
opportunity is only available for a short time, email or call me for a copy of
the IM.
Fijian Subdivisions
A New Zealand accounting firm, with a long association with professional and
political advisers in Fiji, has identified and acquired the right to acquire
the long term lease of 2 properties close to Denerau. The first is 10 acres
with a 150 metre beach front beside the golf course and the second is 6 acres
near Nandi airport.
The intention is draw up and obtain consent for a residential subdivision for
the first and a combined commercial and residential subdivision for the second,
substantially increasing their value. Investors will be acquire shares in a New
Zealand company which will own the properties via a Fijian subsidiary. The
project will be managed by a partner in the accounting firm here. For further
information email or call me.
Retirement Villages
As reported in my last newsletter the development of the retirement village in
Paeroa has now closed fully subscribed, but the promoters 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 example, 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. So if his sort of return interests you email me to join the list of
prospective investors.
Composite Relocatable Housing
Our clients is an experienced boat builder who has designed and produced a
prototype relocatable house using a combination of modern materials. The house
is capable of being produced in one day - yes one day.
Global market research shows it has multiple markets, including enquiries from
Australia, where it is intended to set up another manufacturing operation, and
the Asia Pacific countries. One of its attractions is for disaster relief shown
by interests from the Middle East. For further information email or call me.
Want
to Know More?
If you’d like to know more about these Offers email me or give me a call on +64
21 902 902
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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