Retirement Village Development – Equity Offer - FULLY SUBSCRIBED AND NOW CLOSED
Further to our recent newsletter about this investment opportunity, I’m pleased to advise the promoter is now in discussion with a potential first mortgage funder to provide the debt finance for the development of the 250 unit retirement village in Paeroa.
Further to our recent newsletter about this investment
opportunity, I’m pleased to advise the promoter is now in discussion with a
potential first mortgage funder to provide the debt finance for the development
of the 250 unit retirement village in Paeroa.
The development currently consists of 13.1 hectares of land valued at $8
million. This comprises 4.26 hectares (Stage 1) which has resource consent to
build the first 68 units and is valued at $4.8 million, and an adjoining 8.9
hectares awaiting consent (Stage 2 on which 182 units will be built) which is
valued at $3.2 million.
The proposal with the lender is to provide first mortgage finance towards the
completion of the purchase of the 4.26 hectares and the deposit to secure the
8.9 hectares which has an 18 month deferred settlement. They have also
expressed interest in providing further loans for Stage 1 to cover the costs of
the earthworks and civils for the first 34 lots, and for the cost of
construction for the first 12 units.
Equity Offer
To enable this loan finance to proceed the promoters are offering a 15% equity
share in the development for $1.2 million.
The development budget shows no further capital is required from investors for
completion of Stage 1 or Stage 2.
On completion of Stage 2 the investor/s would own a 15% share in a business
with an estimated value of $30 million, so their $1.2 million would then be
worth $4.5 million. At that stage their investment can be retained and keep
earning a $900,000 annual income, or they could sell their share.
Accordingly for their $1.2 million outlay they would have accumulated:
- A development profit share of $4 million, which due to the structure is tax free.
- Future
ongoing annual income from LTO resales of $900,000 per annum.
Instead of an equity position
the promoters would also consider offering an investor:
- A
second mortgage of $1.2 million on very favourable terms, or
- The
sale of the entire project (with the 4.26 hectares consented for a retirement
village and the 8.9 hectares in the process of receiving the consent).
Want
to Know More?
If you’d like to know more about the this Offer and receive a copy of the
Information Memorandum, email or give me a call on +64 21 902 901 or +64 9 307
3257.
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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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