Desi Place
Limited Partnership
Well located commercial property leased to an outstanding tenant, Hilton Haulage Limited Partnership.
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| Property type | Multiple warehouses (6) |
| Property value | $30.5 m |
| Pre-tax cash distributions | 8% |
| Portfolio LVR (Loan to Value Ratio) | 50% |
| WALT (Weighted Average Lease Term) | 12 years |
| Number of interests | 2,090 |
| Initial value of interest | $10,000 |
| Investors | 78 |
- The investment is a commercial property situated at 330 – 344 Port Hills Road, Hillsborough, Christchurch.
- Leased to leading South Island transport and distribution business Hilton Haulage LP.
- Purchased by the LP in June 2019 for $30.5m with a further building to be built by the tenant and purchased by the syndicate for a fixed price of $7.0m upon completion.
- There is no fixed term for the syndicate.
- Investors account for their own tax on their share of income. The investment is not a PIE.
- The property comprises 6 warehouses with a total floor area of 22,037 square metres on a land area of 4.62 hectares.
- A seventh building presently under construction by the tenant and due for completion in March 2020 is being purchased by the LP for a fixed price of $7.0m.
- The property comprises three leases with initial lease terms of between 10 and 14 years for a WALT of 12 years.
- Each lease has a fixed rent increase of 1.5% per annum with a market review every four years that is capped at 105% of the current rental.
- There are three renewals of between 6 and 8 years on each lease.
- Two of the seven buildings have or will have full MPI food storage certification.
- The buildings have or will have a minimum NBS (New Building Standard) of 70% upon completion of capital works to be carried out and paid for by the tenant to the value of $2.3m.
- Further capital works are to be undertaken by the LP between 2020 and 2028.
- The syndicate is a Limited Partnership and is a “other managed investment scheme” for the purposes of the Financial Markets Conduct Act 2013.
- The LP comprises 2,090 partnership interest shares of $10,000 each
- The Limited Partnership is registered under the Limited Partnerships Act 2008
- The syndicate is a wholesale issue under the exclusion provisions of Schedule 1 of the Financial Markets Conduct Act 2013
- Eligible investor certification, or
- Investors investing a minimum of $750,000
- The LP is governed by a Limited Partnership Agreement and a Management Agreement appointing Quarry Capital as the manager of the LP.
- Pre-tax cash distributions of 8% paid monthly.
- Forecast return of 8.3% by year 2021.
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Please fill out this form to receive your Information Memorandum. Once we receive your contact details one of our friendly team will be in touch in the next 48 hours.
Warning
New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer because there is an exclusion for offers where the amount invested upfront by the investor (plus any other investments the investor has already made in the financial products) is $750,000 or more. As a result of this exclusion, you may not receive a balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
This is not an offer to the public
The Information Memorandum contains full details of the investment including how the projected return for the investment is calculated and the rates associated with the investment and return. This document is not an offer of financial products or other invitation to the public to subscribe for any financial products. Applications for investment may only be made by investors certified as eligible investors under section 3(3)(a) of Schedule 1 of the Financial Markets Condut Act 2013 (FMCA) or investors investing a minimum of $750,000 under clause 3(b)(i) and 41 of Schedule 1 of the FMCA. Returns are not guaranteed.