Established Funeral Business
Stonehaven Funerals & Memorials Limited operate a boutique funeral service business in Gisborne. The property holds a Resource Consent to operate a funeral home and crematorium and they now wish to build a new Funeral Home building.
Stonehaven Funerals & Memorials Limited
operate a boutique funeral service business in Gisborne. The property
holds a Resource Consent to operate a funeral home and crematorium and
they now wish to build a new Funeral Home building.
The facility will include a public auditorium, for seating up to 350
people, a smaller auditorium for small services plus onsite after hours
viewing facilities, arrangement rooms, a mortuary, on site catering
facilities, a monumental sales area and an area for a cremator. The
complex will have car parking for up to 61 cars. There will also be a
large work area for the monumental work and bench top fabrication.
A new company - Stonehaven Property Development Limited - has been
formed which will purchase the land and build a new Funeral Home on this
site directly opposite Gisborne’s main public cemetery. This will
enable the full funeral service and catering to be held at one location
and will better support and enhance the funeral service offering in the
Gisborne community. It will also allow embalming and creations to be
held on site, rather than the requirement for transfers around the
district.
Stonehaven Funerals & Memorials Limited will operate the business,
under a formal lease agreement with Stonehaven Property Development
Limited (“SPDL”). It will enter into a new 15 year lease, with rights of
renewal. The market rental will be reviewed each five (5) years,
during the lease term.
The Offer
SPDL is now raising capital to build the Funeral Home. The Stonehaven
Trust, the current owners of the property, have obtained all the
required consents at their own cost and will provide the land and the
consents for a 25.5% share in SPDL. Investors will hold the remaining
74.5% share.
The promoters have approached their bank for a development finance loan
of 50% of the construction budget. The Stonehaven Trust will contribute
the land and consents towards the construction, and this Offer is to
obtain the balance of the development finance to complete the
development.
The Returns
Investors are budgeted to receive back 3.5% of their principal
investment each year, so for each $100,000 invested, an annual cash
repayment of $3,500 each year. Their equity is budgeted to increase by
53% over the build period and following three years (4 years in total).
This comprises 10.5% of capital returned in cash and a 43% increase in
the equity value of the Company.
The 8 year total shows an equity increase of 114% over the build period
and following seven years. This comprises 24.5% of capital returned in
cash, and an 89.5% increase in the equity value.
The promoters of this Offer have offered to give investors the comfort
of their agreement to purchase the shares of investors who wish to sell
in November 2023. The price at which the shares are purchased would be
subject to an independent valuation of the business at that time.
Want to Know More
If you’d like to know more about this Offer and receive a copy of the
Information Memorandum, reply to this email or give me a call on +64 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
For more information, please click the contact button below to send us a message.
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