We are excited to share with you the first of a portfolio of properties coming available from our client SAPCO Management Ltd.
Our Client, SAPCO MANAGEMENT Ltd. (“SAPCOM”) is a New Zealand based property asset management company established to provide equity Investors secure and attractive wealth-building strategies. As a professional and dynamic organisation, SAPCOM is dedicated to delivering exceptional outcomes for its Property Investment Clients. They specialise in leveraging real estate assets to provide investors with secure and attractive returns paid monthly, plus upside.
SAPCOM’s strategy involves carefully selecting and packaging high quality, smart and secure property acquisitions with add-value opportunities, resulting in significant cash flow and asset value increases. This approach allows them to deliver investors superior capital appreciation and stable cash flow returns.
The Opportunity
An opportunity exists to securely invest in a well located, high-quality, 100% earthquake strengthened, 5/6 energy rated, medium term government tenanted, office tower in Central Wellington, (Close to Lambton Quay) New Zealand, with significant upside. The property comprises a 14-level office tower and basement carpark constructed in 1988 by Downer and Co and designed by architects Warren and Mahoney.
The building has an appealing hexagonal shaped floor plan which allows excellent light and water views offering high quality B grade airconditioned office accommodation with both covered and uncovered car parking. Construction comprises reinforced concrete cast in-situ foundations, reinforced concrete columns and precast concrete beams with integrated precast concrete beam floors. The exterior is horizontal concrete spandrels with recess glass curtain walling and aluminium framed windows.
The office floors each enjoy very good natural light and provide a good standard of air-conditioned, office accommodation with both male and female toilets located on each floor. The building was recently strengthened to 100% NBS and has achieved a NABERS energy rating of 5 out of a possible 6.
Equity Investment
SAPCOM is seeking to raise $20,000,000 from Investors who will own 100% of the office Tower and receive a fixed 7% p.a. return (paid monthly), plus a projected 13% p.a. increase in the value of their investment over a three-year period, i.e. a total of 20% p.a. return on your investment.
Financials
| Purchase price | $41,300,000 (9.68% current net yield based on current |
| valuation and $4,000,000 net rental) | |
| Purchase costs | $1,200,000 (Legal, accounting, procurement, underwrite |
| and capital raise fees) | |
| Opening cash in bank | $2,500,000 (Contingency and add value fund) |
|
Total cost: |
$45,000,000 (8.88% current net yield on total cost) |
| First mortgage | $25,000,000 (pre-approved) |
| Investors | $20,000,000 (secured by way of formal loan documentation, |
| second ranked security, and 100% Investor ownership of the Single Asset Property Company) | |
|
Total funding: |
$45,000,000 |
| Net current income | $3,500,000 (moderate rental rates) |
| Ancillary income | $500,000 (guaranteed for 3 years) |
|
Total income: |
$4,000,000 |
| Interest first mortgage | ($2,400,000) (9.60% p.a. expected to decrease) |
| Return to investors | ($1,400,000) (7.00% p.a. fixed for 3 years) |
| Management | ($175,000) (5.00% p.a. of current net income) |
| Surplus to bank account | ($25,000) |
|
Total outgoings: |
$4,000,000 |
Investor Exit Provision
We recognize that Investors circumstances can change from time to time, so we have provided an option for investors to exit at any time, at their original entry price (including all accrued interest up to date of exit), subject to 30 days’ notice in writing.
How do I Invest
Please initially advise us of your interest in any amount (from $100 to $20,000,000) by return email including your name, address, and phone number.
Interested Investors can access a copy of the IM describing the opportunity in more detail by contacting us directly.
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Any reference above to 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.
Kind Regards,
Jonathan Duncan – Partner
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
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