News } TBK Capital

Property, the economy, investing, and borrowing

An article last month in Newshub observed that “The property market is entering a new phase as a growing supply of homes, higher interest rates and tighter lending rules are contributing to a slow down in price growth”. And Tony Alexander’s recent comments in Interest.co.nz indicates a correction.

An article last month in Newshub observed that “The property market is entering a new phase as a growing supply of homes, higher interest rates and tighter lending rules are contributing to a slow down in price growth”. And Tony Alexander’s recent comments in Interest.co.nz indicates a correction.

Well according to my contacts in the market, this slow down in price “growth” is already appearing; bearing in mind of course for those selling and buying in the property market there is no difference.

A not surprising consequence of the relief that house prices have ended an unsustainable rise, is the requests we’re now getting at TBK Capital which shows more interest from:

  • Business owners looking for debt and equity finance to expand.

  • Potential investors looking for forms of investment other than property.

But first let’s look at what’s happened prior to the observations above.

The economy

In November last year I published my “Confidence is definitely up” newsletter. Three of the Offers listed in it have now closed subscribed, or oversubscribed. That’s a good sign of confidence.

In January this year I published a newsletter entitled “Borrowing and Investing in 2022”. It contained brief comments on the economy, feedback from those looking for debt finance, and it suggested bank lending for property and business was becoming more difficult than we’d enjoyed over recent years.

There were other signs of caution; like the Reserve Bank governor Adrian Orr recently advising it was not expecting a recession. An additional indication of change was a business survey suggesting “the economy is on thin ice and inflation may be peaking”.

In my view we are seeing a change, and relief as the madness of increasing house prices slows. We’ve seen it all before. But I certainly agree owning a house is still an excellent form of investment. Or as my original investment banking mentor back in the 60’s said “Property always has been, is now, and always will be the best investment”. See my previous newsletter.

Current Offers

So having made the observations above; what investment opportunities is TBK capital offering?

Well other than arranging debt finance for businesses and all forms of property, as we all come out of the Covid19 lockdown we see a resurgence in the value of owning or investing in businesses.

All of these investment opportunities are on our website, so without going into any detail here’s a brief summary. You can receive a copy of the IM describing them by replying to this newsletter or emailing me later for information about the ones that interest you.

Wholesale Investor

This a business very similar to TBK Capital, servicing the same sort of clients looking for investment capital. But they have clients - and direct exposure to active investors - across Australia, Singapore, the United Kingdom, Hong Kong, the United States, Malaysia, China and South Korea.

So it’s not surprising TBK Capital is promoting Wholesale Investors’ own current Capital Raising offer. It’s a business we understand, admire, and one where I enjoy a strong personal relationship with the Founder. And it has a planned exit strategy via a listing on the ASX.

This is one you must look at, reply to this email I can put you directly in touch with him.

Retirement villages

TBK Capital has offered a number of retirement village investments in the past, and here’s just one example. The returns are incredible and there are some tax incentives for investors in the developments. These will vary according to the structure of the Offer and the development itself.

Well I’ve known this developer for many years. And I’ve raised both the equity and debt required to build most of the villages for him and we’ve become good friends.

If this is of interest please reply to this email and I’ll make sure you get a copy of the IM when it becomes available.

Icehouse Ventures Seed Fund III

I’ve already mentioned this offer in a previous newsletter. TBK Capital is again supporting Icehouse Ventures to seek investors for their third flagship technology investment fund. Thanks to those of you who have already committed.

The Fund has had a strong reception with over $20 million committed by nearly 200 family offices and high net worth investors. Accordingly they have completed a first close and anticipate a final close towards the end of this month. Two investments are on track to close in the coming weeks.

This Fund builds on their experience and track record from their earlier funds which were among the first investors in standout companies including Mint Innovation, First AML, Halter, and Dawn Aerospace. This one will invest in another 30 early stage technology companies over the next three to four years.

It leverages Icehouse Ventures ability to access and invest in the most promising start-ups to emerge here. It now has the largest community of founders, with $250 million in funds under management for 1,500 investors, and has one of the largest and most tenured team in venture capital in New Zealand. 

They anticipate completing a final close for this fund during this quarter. The minimum investment is $50,000, which is paid 25% up front and then in 25% tranches over three years. You can review their Information Pack here or watch this brief video. Then if you’d like invest, or to know more, reply to this email or call me on 021 902 901.

Zapion

In 2020 Covid-19 hit the world and video conferencing became a necessity for everything from business meetings, to schooling, to medical consultations. Remote working and work from home became the new paradigm.

Video conferencing apps like Zoom and Microsoft Teams, saw daily users jump from 10 million to 400 million. Zoom has now grown to a multi-billion dollar company in only10 years with Microsoft Teams now a daily work tool for most corporates.

Remote working is here to stay and new tools are being developed to make communication and interactions online, more real and lifelike. Globally there is rapid development of “real virtual worlds” online. These virtual worlds, using virtual reality headsets, are part of a new tech universe which has been called the “metaverse”. At present most of the metaverse worlds are for gaming.

Zapion, a new NZ tech startup, has an online software platform which enables it to blend video conferencing with virtual reality, including access to a suite of business tools. Its products are “business metaverses”, online business offices, workplaces, etc., which make business meetings, education and events much more “like being there” in person.

Zapion is currently raising capital locally and internationally to accelerate the pace of development and international distribution via established business networks. For a copy of the information memorandum reply to this email.

Investing in Offers

As a subscriber to these Opportunities newsletters you will always receive notice of “investment” offers we make available in all forms, equity, debt, loans, you name it. These can always be accessed on our website under Projects. 

And if you have any friends or associates you feel might be interested in subscribing to our newsletters, including those presenting new Offers, they can do so here.

Raising money

Well since we came out of the “Covid19” thing - or whatever you’d like to call that with respect to its negative effect on raising debt for property or business - I did provide some information about raising money in the Borrowing and Investing in 2020 newsletter.

Many of you will have already taken advantage of our debt broking services, but those of you who would like to know more, a start could be to visit our website here for raising money for property and here for business. Just email me with your basic requirements and we can go from there.

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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

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