Luxury Home in Nelson
Our client has an agreement to purchase a vacant elevated site atop of the 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 agreement to purchase a vacant elevated site atop of
the 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.
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 House
This 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.
Capital Raising
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 debt 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 Bayleys Real Estate in Nelson.
Expected Return to Investors
Settlement of the land purchase is set for 20 December 2019 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.
The construction and sales budget is given in the IM and on the profit
share given above, this shows a 31% pre-tax return to investors on money
outlaid over a 2 year time frame.
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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