Projects } TBK Capital

Luxury Home development – projected 40% return

Our client has an option to purchase a vacant elevated site atop a prized bay-side location known as ‘The Cliffs’ in Nelson. He is an experienced Property Investor and Developer, and intends to build a luxury home on the site for sale.

Our client has an option to purchase a vacant elevated site atop a prized bay-side location known as ‘The Cliffs’ in Nelson. He is an experienced Property Investor and Developer, and intends to build a luxury home on the site for sale.

The construction and sales budget provides for $1,100,000 to be raised from investors who subscribe to this Offer and $1,100,000 by pre-arranged bank finance.  The sale of the completed house shows a 40% pre-tax return to investors at the end of 2 years.
The Property
Nelson is attested to by the arrival of more and more well-resourced arrivals seeking their “place in the sun”. The property itself is a vacant, elevated site atop a location widely considered one of New Zealand’s loveliest and handiest unspoiled regions with the best year-round weather and lifestyle choices. It has a sweeping panorama across Tahunanui Beach, Tasman Bay, Fifeshire Rock, Haulashore Island, The Cut and most of the Boulder Bank.
The architect designed house will be a clean, minimalist, view-centric, single-level house of laminated timbers, with floor-to-ceiling sliding glass, and a deep veranda over a wide full-length front deck. It has a double internal garage plus turn-around pad.
It contains one spacious master bedroom, with an ensuite and walk-in wardrobe, plus a further two bedrooms sharing a second ensuite. In the center there is an open plan kitchen with a walk in pantry and separate toilet plus a spacious dining and lounge area with a feature double sided fireplace.
It is designed in a very shallow V-shape to capture the South-West aspect of Tahunanui Beach and the regions hinterland in one direction, whilst the other ‘arm’ focuses attention on the North West aspect covering the island, Haven, Tasman Bay, and Boulder Bank.
The Offer
A new company, Britannia Heights Limited (“BHL”) has been formed to undertake the purchase of the land and build and sell the house and land. The price of the land is approximately 30% of the build costs.
BHL will be owned 50% by interests associated with the promoter as his fee for securing, arranging and managing the construction of the house and its sale, and providing a personal guarantee on the loan raised to assist in the purchase of the section and the development of the house. The other 50% will be owned by the investors who participate in this Offer. These investors will not be required to guarantee that loan.

Development finance equal to 50% of the cost of land, development and marketing has been sought and assumed to be available.
The budgeted time frame to build and sell the house is 2 years. The marketing policy to attract prospective buyers of the completed house will include the services of Jeremy Matthews at Bayleys Real Estate in Nelson. A copy of the marketing campaign is available on request.

The promoter of the Offer has obtained an option to purchase the property on behalf of BHL and agreed to provide $10,000 on behalf of the partnership to secure a purchaser prior to the expiry of that Option on 29 May 2020. A gesture confirming his confidence in the project.

Expected Return to Investors
Settlement of the land purchase is set for 30 June 2020 and the money raised from this Offer will be first applied as a deposit to secure an unconditional contract to buy the land.
The balance will be held in a solicitor’s trust account until settlement of the land purchase. It will then be transferred to a bank account, in the name of BHL, to finance the construction of the house.  
No management fee will be paid to the Promoter. The investors will have the right to nominate one of their members to represent them (as a director of BHL), or in some other agreed manner, during the construction and sale of the house.
The profit in BHL resulting from the sale of the house will be shared equally between the investors in BHL and the Promoter, plus the investors will receive (from the promoter’s share) a refund of the equity capital raising fees which will be paid from his share of the profit.
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.

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.


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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