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.
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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