Projects } TBK Capital

Retirement Village Development Opportunity

We have an experienced developer looking for an equity partner to assist in financing the construction of a Retirement Village for the Waikato / Bay of Plenty region.

We have an experienced developer looking for an equity partner to assist in financing the construction of a Retirement Village for the Waikato / Bay of Plenty region.
 
The resource consent for a License to Occupy (LTO) village has been received for the initial stage of 68 Units. Resource consent for a further 182 Units plus a 100 bed care facility (Rest Home) is currently under way with council approval expected.
 
Costings for the earthworks and civils have been completed by professional surveyors and engineers, and the costings for the construction of the units on a square metre basis have been obtained from a respected corporate builder. 
 
The developer is seeking an equity partner or partners to share in the development. There are significant tax incentives associated with investment in LTO Retirement Villages. 
 
Staged Development
 
The development will be done in 2 stages on 2 separate sites and equity investors are being sought for both stages.

  • Stage 1 land with resource consents valued at $4.8 million.
  • Stage 2 land valued now at $3.2 million. It is anticipated that this land will be valued at $8 - $10 million once resource consents are received (estimated 12 months).
     

With an investor investing $2.7 million, the vendor would supply $2.7 million in equity, and $2.7 million would be financed with the property as security ($8 million total valuation with 33% lending). Development finance will then be obtained to complete the development through pre-sales.
 
Profitable Venture with Ongoing Revenues
 
The development provides a very profitable return to investors which is vastly improved by the tax free treatment of the development profits.  
 
The construction period to build the 68 units is 2 years based on conservative presales of the units. In the event presales exceed budget the construction period could be as low as 12 months for stage 1.
 
Stage 1 – 68 Units – is budgeted to provide a development profit (excluding finance costs) of $6 million. The annual revenue would be $1.5 million.
 
Stage 2 – 182 Units – is budgeted to provide a development profit (excluding finance costs) of $21 million and annual revenue of $4 million.
 
The Opportunity
 
The opportunity for an equity participant in this project is to have a passive role in the development and sale of the LTOs and receive dividends from the business, or take an active role to be agreed.
 
A sale of entire project including land and consents would be considered.
 
Other information available includes:

  • An in-depth market research report on this proposed retirement village.
  • Registered valuations of the two properties for Stage 1 and Stage 2.
  • A letter of support from Hauraki District Council.
  • A list of the retirement villages in the surrounding areas.

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, BDO Building
120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Fax +64 9 309 4519
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz
 

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