Private Placement Information Memorandum - Du Val Group
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP Private Placement Information Memorandum DU VAL BUILD TO RENT LIMITED PARTNERSHIP CAPITAL RAISE FOR NZD$18 MILLION www.duvalpartners.com | invest@duvalpartners.com Copyright of Du Val Build to Rent Limited Partnership (2021)
DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Contents
1. Important Notice to Investors 3
2. Directory 6
3. Letter from BTR Managing Director 10
4. About the Du Val Group 12
5. Executive Summary 16
6. The Fund’s Investment Strategy 18
6.1 Objectives 18
6.2 Strategy 18
7. Investment Highlights 19
7.1 Description of the Offer 19
7.2 Treatment of Investment Funds 19
7.3 Use of Investment Funds 24
7.4 Distribution Policy 24
7.5 Processes Relating to Exit 25
7.6 Fees & Expenses 25
8. Explaining Build To Rent (BTR) 30
8.1 What is BTR? 30
8.2 Market Opportunity For BTR In NZ 31
9. Property Management (BTR) 32
9.1 Best Practise Property Management 32
9.2 Property Management Agreement 32
9.3 The IPM Team 32
10. Risks 34
10.1 General Investment Risks 34
10.2 Property Investment Risks 35
10.3 Mitigation of Risks 36
11. Explaining The Limited Partnership 37
11.1 Limited Partnership 37
11.2 The General Partner 37
11.3 Limited Partners 40
11.4 Taxation 41
11.5 Investor Meetings 41
11.6 Exit by Limited Partnership 41
12. The Investment Process 42
13. Glossary Of Terms 43
SCHEDULE 1 – INVESTOR SIGNING PACK 44
Non-Disclosure & Non-Compete Agreement 44
Subscription Agreement 45
SCHEDULE 2 – CERTIFICATION 47
Wholesale Investor Certificate 47
Eligible Investor Certificate 49
Singapore Institutional or Accredited Investor Certificate 51
Hong Kong Professional Investor Certificate 53
SCHEDULE 3 - ANCILLARY INFORMATION (Data Room)
Limited Partnership Agreement
Deed of Adherence
Registered Valuation
Conditional Agreements to purchase property
Records of Title
Lease Agreements
Historical Financial Performance
Letter Of Financing Offer
Investor Signing Back
Property Management Agreement
THIS DOCUMENT IS NOT A PRODUCT DISCLOSURE STATEMENT
This document is an Information Memorandum in respect of an offer of limited partner interests in a New Zealand limited partnership that is established by Du Val BTR GP Limited.
The offer will not be a regulated offer under the Financial Markets Conduct Act 2013. Only those persons who are Qualified Investors of New Zealand, Singapore and Hong Kong (as
2 defined in this Information Memorandum) will be able to invest. This Information Memorandum does not purport to be all inclusive or to contain all information which recipients
may require to make an informed assessment of whether to invest.
Copyright of Du Val Build to Rent Limited Partnership 2021 (C)
DU VAL BUILD TO RENT LIMITED PARTNERSHIP
1. Important Notice
to Investors
This Information Memorandum (the IM) is an offer document for limited partnership interests (represented by Units) in a
New Zealand registered limited partnership known as the Du Val Build to Rent Limited Partnership (Fund).
Du Val BTR GP Limited (General Partner or GP) is the general partner of the Fund and is the offeror of the limited partner
interests offered under this IM.
This Offer of Units issued by the Fund is not suitable for retail investors.
This Offer will only be made to persons, as defined by the relevant financial market legislation, who can certify that they
are:
(1) A New Zealand Wholesale Investor being a:
a. Person investing at least NZD$750,000; or
b. Investment business; or
c. Large investor (with a net worth over NZD$5,000,000); or
(2) A New Zealand Eligible Investor; or
(3) Such other person to whom an exclusion applies under Schedule 1 of the FMCA; or
(4) A Singapore Accredited or Institutional Investor; or
(5) A Hong Kong Professional Investor.
Applications from or requests for information from persons who are not Qualified Investors will not be accepted.
By acceptance of this offer document, each recipient acknowledges and agrees that this offer document and any
other information (including any projections, forward-looking statements, estimates, forecasts, management targets
and other financial or business data) provided by the Fund to the Qualified Investor is private and confidential and may
not be disclosed, distributed or reproduced without the express written permission of the General Partner.
Neither this offer document nor any offer information is financial or investment advice or a recommendation to acquire
securities in the Fund, nor is it accounting, financial, legal, tax advice or other professional advice with respect to the
Fund, its business, this offer document, or the offer. This offer document has been prepared without considering any
person’s individual investment objectives, financial situation or particular needs. You are solely responsible for forming
your own opinion and conclusions on such matters and for making your own independent assessment of the offer
information.
You are encouraged to ask questions, read all documents carefully, and seek independent legal and financial advice
before committing to this Offer.
Neither the GP nor any of its related entities or directors guarantee or make any representations as to the performance
of the Fund, the maintenance or repayment of capital, the price at which Units may be issued, redeemed or traded,
or any particular rate of return by the Fund. Investments by the Fund are not deposits or other liabilities of the GP or its
related entities, and are subject to investment risk (see Section 10) including possible loss of income and capital invested.
This IM has not been, and will not be, lodged with the Registrar of Financial Service Providers in New Zealand and is not a
product disclosure statement under the Financial Markets Conduct Act 2013.
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Hong Kong: The contents of this IM have not been reviewed by any regulatory
authority in Hong Kong. You are advised to exercise caution in relation to the
Offer. If you are in any doubt about any of the contents of this document
you should obtain independent professional advice. This IM has not been
registered by the Registrar of Companies in Hong Kong. The Fund is a collective
investment scheme as defined in the Securities and Futures Ordinance of
Hong Kong (SFO) but has not been authorised by the Securities and Futures
Commission pursuant to the SFO. Accordingly, the Units may only be offered
or sold in Hong Kong to persons who are “professional investors” within the
meaning of the SFO. In addition, this IM may not be issued or possessed for
the purposes of issue, whether in Hong Kong or elsewhere, and the Units may
not be disposed of to any person unless such person is outside Hong Kong,
such person is a “professional investor” within the meaning of the SFO or as
otherwise may be permitted by the SFO.
Hong Kong
Generally: The above information is for general guidance only, and it is the responsibility of any person or persons in
possession of this IM and wishing to make application for Units to inform themselves of, and to observe, all applicable
laws and regulations of any relevant jurisdiction. Prospective applicants for Units should inform themselves as to legal
requirements also applying and any applicable exchange control regulations and applicable taxes in the countries of their
respective citizenship, residence or domicile.
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Singapore
Singapore: The Offer or invitation which is the subject of this This IM has not been registered as a prospectus with MAS.
IM does not relate to a collective investment scheme which Accordingly, this IM and any other document or material in
is authorised under Section 286 of the Securities and Futures connection with the offer or sale, or invitation for subscription
Act, Chapter 289 of Singapore (the SFA) or recognised under or purchase, of Units may not be circulated or distributed,
Section 287 of the SFA. The Fund is not authorised or recognised nor may Units be offered or sold, or be made the subject of
by the Monetary Authority of Singapore (MAS) and the Units an invitation for subscription or purchase, whether directly
are not allowed to be offered to the retail public. Each of this or indirectly, to persons in Singapore other than (i) to an
IM and any other document or material issued in connection institutional investor under Section 304 of the SFA, (ii) to a
with the Offer or sale is not a prospectus as defined in the SFA. relevant person pursuant to Section 305(1), or any person
Accordingly, statutory liability under that Act in relation to the pursuant to Section 305(2), and in accordance with the
content of prospectuses would not apply. conditions, specified in Section 305 of the SFA or (iii) otherwise
pursuant to, and in accordance with the conditions of, any
other applicable provision of the SFA.
This Offer is considered a type of “acceptable investment” Full investor visa criteria and application details are available
being an Immigration New Zealand (NZ) requirement for at the following link: https://www.newzealandnow.govt.nz/investing-in-nz/visas/
foreign investors who wish to invest in NZ businesses and investor-visa
apply to obtain one of two NZ residency visa categories being:
This IM does not constitute an offer or solicitation to any
a) Investor Visa (NZD$3 million invested in NZ across 4 person in any jurisdiction in which such offer or solicitation is
years); and not authorised or to any person to whom it would be unlawful
b) Investor Plus Visa (NZD$10 million invested in NZ across 3 to make such offer or solicitation.
years).
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
2. Directory
The Fund General Partner Du Val Key Personnel
Du Val Build to Rent Fund LP Du Val BTR GP Limited As per
(LP Number: 50021880) (Company number: 7796657) www.duvalgroup.co.nz/team
8 Lakewood Court, 8 Lakewood Court,
Auckland 2104 Auckland 2104
Bankers
www.duvalpartners.com www.duvalpartners.com Westpac
www.westpac.co.nz
Accountant Tax Advisors Preferred Construction Advisory
Herbert Morton Herbert Morton Kingstons,
19 Victoria Street, Cambridge 3434, 19 Victoria Street, Cambridge 3434, Level 5, 25 Teed Street, Newmarket,
www.herbertmorton.co.nz www.herbertmorton.co.nz Auckland 1023, PO Box 1947,
Shortland Street,
Brandt Taxation Limited, Auckland 1140
17 Clifton Road, Hamilton 3204, www.kingstons.co.nz
Investment Advisors and Merchant www.carlbrandttax.co.nz
Bankers BBD
Reesby & Co Level 8, Shortland Chambers
Level 1, Lobby 2, Shed 24 70 Shortland Street,
Princes Wharf, 143 Quay Street Auckland 1010,
Auckland Preferred Valuation & Professional New Zealand
www.reesby.co.nz Services Advisory www.bbdnz.co.nz
CBRE
Denning Asia Level 14, ANZ Centre,
Level 2, 60 Pitt Street, 23-29 Albert Street, Auckland, 1010
Sydney NSW 2000 www.cbre.co.nz
Australia Solicitors
www.denningasia.com Seagars
iCLAW Culliney | Partners
Level 8, 52 Swanson Street,
Level 4, 14 Garden Place
Auckland 1010
PO Box 135
www.seagars.co.nz
Hamilton 3240
Property Management Services
www.iclaw.com
Telfer Young
Investment Portfolio Management
Level 7, 52 Swanson Street, Auckland
(IPM) DLA Piper New Zealand
City 1010, PO Box 5533, Auckland 114
15 Osterley Way, Manukau 205 Queen Street
www.telferyoung.com
Auckland PO Box 160
Auckland 1140
www.dlapiper.com
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
WELCOME TO
AOTEAROA,
NEW ZEALAND
One of the world’s most secure investment destinations
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Our Location
New Zealand is made up of a group of islands, just 1,300km east of Australia in the
South Pacific Ocean. The landmass is about the same size as Britain or Japan,
but with a population of 5 million people. Our relative geographic separation
from most continents has allowed us to remain largely exempt from international
conflict. Our low-density population, lack of pollution and diverse, easily accessible
landscape contributes to our high quality of life (Auckland, NZ has ranked in the
Top 10 of Mercer’s Quality of Living Survey for eight consecutive years).
Our Steadfast Economy
New Zealand has a stable, highly developed, free-market economy. Our
manufacturing and service sectors support a significant and highly efficient
agricultural sector. This is supported by multiple trade agreements with Australia,
China, Korea and many other lucrative markets. The World Bank’s ‘Doing Business
2018’ report ranked us the world’s easiest country to do business in.
• Open and competitive economy
• 53rd largest national economy in OECD
• Exports of goods and services account for approximately 30% of real expenditure
GDP
• NZ ranked second on Forbes’ Best Countries for Business 2018
• NZ ranked third most attractive destination for investors in Mikin’s Global
Opportunity Index 2016
• NZ ranked first in the world for entrepreneurship by HSBC’s 2017 Expat Explorer
survey
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Our Government
New Zealand is a constitutional monarchy with a parliamentary system of
government. Our government is consistently rated as one of the least corrupt in
the world according to Transparency International’s Corruption Perceptions Index.
• Zero ‘blanket’ capital gains tax policy
• Zero stamp duty
• Low inflation policy
• Pro-business Government
• Ranked the world’s second most peaceful country (Global Peace Index, 2018)
Our Education System
New Zealand is well known internationally for its world-class education system.
All eight of New Zealand’s universities are ranked in the top 500 QS World University Rankings. The
University of Auckland, New Zealand’s largest, ranks 85th. New Zealand is the only country in the
world to have all its universities ranked in the top 3% of universities worldwide.
• New Zealand has the 2nd highest degree completion rates in the OECD
• New Zealand qualifications are recognised globally
• International education is New Zealand’s 4th largest export earner
• In 2018 nearly 28,000 international students chose to study at New Zealand universities, a 6%
increase on the previous year. Key markets are China, USA, India, Malaysia and Vietnam
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DU VAL BUILD TO RENT LIMITED PARTNERSHIP
3. Letter from
BTR Managing Director
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10DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Dear Prospe
ctive Qualifie
d Investor,
It is my plea
sure to invit
e you to be
come a Un
it holder in
the Du Val
Build to Rent
The Du Val Limited Partn
Build to Rent ership (the
Fund Limite Fund).
Val BTR GP d Partnersh
Limited bein ip is a Priva
g the build te Equity Re
-to-rent (B al Estate (P
TR) manag ERE) invest
ement divis ment vehicle
ion of the Du and is esta
Val Group blished by
Du Val is on (Du Val) (w Du
e of New Ze ww.duvalp
aland’s larg artners.com
investmen est residen ).
t. Du Val ha tial develope
s approxim rs, is a subs
ately NZD$ tantial prop
or held for 750 million erty investor
investmen of projects and a man
t, with a pref that have be ager of wh
erence to in en delivered olesale
vest in larg , are in deve
er schemes lopment, un
over a num der constru
For more in ber of year ction
formation s, in order to
about Du Va maximise va
l please se lue.
e Section 4
of this IM.
BTR Projects
that are or
will be esta
hubs and ke blished by
Du Val are
y infrastruct Auckland ce
ure. ntric, residen
tial led and
situated in
close proxim
ity to trans
The BTR sect port
or is one of
stable long
increasing -term inco
with popula me and incr
tion growth easing mar
ket deman
that transla d for rental
tes to grea properties.
ter opportu The deman
nities for re d for BTR is
I look forwar turn, includi only
ng capital
d to welco gain, to Inve
ming you in stors.
the near fu
ture as a Du
Val Build to
Rent LP Unit
Yours faith holder.
fully,
John Dalze
ll
BTR Managi
ng Director
Du Val BTR
GP Limited
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11DU VAL BUILD TO RENT LIMITED PARTNERSHIP
4. About the Du Val Group
Welcome to the Du Val Group
With a pipeline GDV of $750 million, we specialise in developing
investment grade, residential led, Build-to-Rent (BTR) and
Buy-to-Let (BtL) property. Our portfolio is underpinned by proximity to
infrastructure, transport links, secure employment hubs and population growth.
We employ a 360-degree approach to property development and investment.
This allows us to simplify and streamline the investment process and solidifies
the Du Val Group as a full-service property group.
DU VAL GROUP’S
360 DEGREE
APPROACH TO
PROPERTY
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Key Advantages of
Working with the
Du Val Group
1. Financial Backing
We have a strong network of domestic and offshore institutional
financiers who provide secured credit for Du Val projects and
through our funds management division, Du Val Capital Partners,
we are able to financially resource the development of iconic
projects in Auckland, “the city of sails”.
2. Research Led & Investment Grade
Our projects are research led and data driven. We are committed
to building an investment grade portfolio providing value for
government, major institutions, occupiers, investors and home
NEW ZEALAND’S LARGEST
buyers.
PRIVATE SUBURBAN
APARTMENT DEVELOPER
(CBRE - JUNE 2020)
3. Scale & Expertise
As New Zealand’s largest apartment developer and 8th largest
home builder (in partnership 2018), the Du Val Group offers scale
and certainty of completion.
NEW ZEALAND’S MOST ACTIVE
PRIVATE APARTMENT
DEVELOPER
(CBRE - JUNE 2020) From initial feasibility to land assembly, design management,
consenting, sales & marketing through to construction and
procurement, we have built an internal team of experts in each
sphere of the property industry to get the job done.
TOP INVESTMENT PORTFOLIO 4. Long Term Accountability
MANAGEMENT TEAM
(LJ HOOKER 2018-20)
By providing a 360-degree approach to property, we stand by
every project we build. From mortgage advisory to property and
facilities management, we seek to maintain a high standard of
service and an ongoing relationship through the lifecycle of
investment.
NEW ZEALAND’S 8TH LARGEST
HOMEBUILDER IN PARTNERSHIP
(BCINZ - DECEMBER 2018)
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13DU VAL BUILD TO RENT LIMITED PARTNERSHIP
Our Philosophy & Services
Du Val employs approximately 60 people from two office Du Val owns one of Auckland’s largest BTR portfolios providing
locations, Auckland and London, and between 200 – 300 affordable housing to the many people living and working in the
employees, contractors and subtrades work on Du Val projects Southern Corridor of Auckland. This portfolio has been built-up
each day. over the many years of successful property development.
TRANSPARENCY OF FEES BRICKS & MORTAR RESEARCH
We believe it is our responsibility We only invest in bricks & mortar All Du Val projects are data driven
to be transparent and use our investments such as Build to Rent or and backed by institutional grade
investors’ capital wisely without it Buy-to-Let accommodation. These research. From land acquisition
being a mechanism for us to charge projects are always underpinned by through to the development and
high fees. Your investment is put to key infrastructure, rental demand, construction phase, research and
work directly in the assets you have employment hubs, amenity and data plays an integral part in our
invested in. Management and Fund proximity to transport links. ability to deliver housing at scale.
fees are charged to manage your
investment.
AUCKLAND’S STABILITY INFRASTRUCTURE TAX EFFICIENT
Since 1981 Auckland real house price We invest in projects situated in Our funds are structured as Limited
growth (adjusted for inflation) has close proximity to key infrastructure Partnerships that allow you to
been 4.5% compounded annually and employment hubs. Government manage your own tax liability.
(Reserve Bank of New Zealand investment in infrastructure is an
Bulletin, Vol. 79) compared to the rest indication of an area’s growth. This
of New Zealand at 2.5%. is particularly true for Auckland’s
southern corridor, which is home
to infrastructure projects like
Middlemore Hospital, Auckland
Airport and MIT.
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TRANSPORT HUBS TENANT DEMAND AUCKLAND
We invest within commuter belts We situate our projects and We stay focused on Auckland
with access to public transportation. communities within locations with property as it has proven to be the
The suburbs within which we well established tenant demand. Our most resilient market over time. With
develop are undergoing rapid BTR portfolio is in such high demand a long term lense on New Zealand
growth in population and density. that throughout New Zealand’s property, Auckland will always shine
Subsequently it’s these suburbs Level 4 and 3 COVID19 response, it as the most secure destination for
that have also seen increased maintained a 0% vacancy rate. investment.
investment in public transport.
PORTFOLIO MANAGEMENT CONSTRUCTION CAPABILITY
Our award-winning property & Du Val Construction completes our
facilities management division full service offering through self-
makes the transition from delivery to delivering building projects where
completion seamless and embodies we are able to leverage our scale
our long term commitment and volume to establish economies
to projects many years post- of scale across our portfolio of
completion.. projects. Our balance sheet stands
behind each of our developments
minimising the risk of third-party
failure.
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5. Executive Summary
Financial Product: Ordinary Units (Units).
Fund Name: Du Val Build to Rent Limited Partnership (Fund).
General Partner: Du Val BTR GP Limited (GP).
Limited Partners: Investors (the GP holds a private register of Investors).
Fund Size: Eighteen million dollars (NZD$18,000,000).
Units on Issue: 18,000,000 Units.
Subscription Price: NZD$1.00 per Unit.
Minimum Subscription 31 May 2021.
Close Date:
Minimum Subscription Capital sufficient to settle the Initial BTR Acquisitions in two separate transactions, to be
Amounts: settled either separately or contemporaneously, being $7,630,000 (seven million and
six hundered and thirty thousand dollars) representing 7,630,000 Units in respect of the
purchase of McKenzie Road, and $10,370,000 (ten million and three hundered and seventy
thousand dollars) representing 10,370,000 Units in respect of the purchase of May Road.
Minimum Investment: $250,000 (The investment amount will require approval by the GP and compliance with
the FMA Act 2013 (NZ), Securities and Futures Act (SP) or Hong Kong Securities and Futures
Ordinance (HK)).
Fund Purpose: The Fund has been established by the GP to fund the acquisition of the two Initial BTR
Acquisitions in accordance with the Offer at clause 7.1 (at May Road and McKenzie Road,
Auckland), in accordance with the contracted and conditional Sale & Purchase Agreements,
and to fund the future acquisition and/or developments of Du Val sponsored BTR Projects.
Initial BTR Acquisitions: As at the date of this IM, and subject to the Minimum Subscription being reached, the
Fund’s initial investments will be the two BTR Projects at May Road and McKenzie Road,
Auckland.
Investor Settlement: Units will be allotted to Investors on the Minimum Subscription Close Date once the GP has
approved the Investor (subject to accounting for any over-subscription in the Fund), and
the Fund’s Minimum Subscription Amounts being reached, enabling the Fund to complete
the Initial BTR Acquisitions. Allotment of Units is subject to the Investor providing the GP with
such information reasonably required to confirm the Investor’s qualification as a Qualified
Investor in order to participate in the Offer, together with and subject to the Investor’s
provision and completion of all AML requirements.
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Investor Type: Qualified Investors Only – Eligible / Wholesale / Singapore / Hong Kong Certifications are
required.
Investors in the Fund will hold their Units as a long-term investment.
Target Fund Returns: The Fund will invest in BTR Projects that target the following returns to the Fund.
a) Target Fund Return: >8% long term target return per annum across the BTR portfolio; and
b) Target Equity Multiple: >2X (10 years).
Distribution Policy: The Fund will target an annual Investor distribution of 7c per Unit, subject to the Fund
meeting all its financial obligations. The Distribution Policy will be reviewed quarterly by the
GP until the Fund is established and stabilised.
Distribution Payments: The GP will on or about 20 business days following the Fund’s balance date, and quarterly
thereafter (i.e. June, September, December, March) declare a distribution as payable.
Exit/Transfer of Units: Investors will be able to sell or transfer their Units at any time after 12 months from the
Minimum Subscription Close Date to either another party or via Du Val’s secondary market,
provided such transfer occurs pursuant to the procedure set out in the Fund’s Limited
Partnership Agreement.
The GP will facilitate all transfers on behalf of all Investors, at the Investors cost (see further
information regarding costs in Section 7.5).
Governing Law: The Fund is a limited partnership registered under New Zealand law.
Reporting: Financial reporting available to Investors include:
a) Annual financial statements;
b) An annual fund review;
c) Quarterly distribution reports;
d) Annual tax statements setting out the Investor’s share of any estimated income and
deductions of the Fund and;
e) Valuation reports of fund assets
Tax Filing Investors will be required to file their own individual tax returns.
Risks of Investing: General and property-related risks of investment are set out at Section 10 of this IM.
Note: The above represents a summary of the Offer contained in this Private Placement Information Memorandum (IM). Qualified Investors,
of New Zealand, Singapore and Hong Kong, who wish to participate in the Fund should read the IM in its entirety and if considered necessary,
obtain appropriate independent professional advice, including legal and taxation counsel.
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6. The Fund’s Investment Strategy
6.1 Objectives
The Du Val Build-to-Rent Fund has been established to raise capital for the Fund’s initial acquisition of the
BTR Projects at May Road and McKenzie Road, Auckland.
Over time, the Fund will seek to raise further funds by seeking additional capital, or by way of a rights
issue, in order to acquire available Du Val sponsored BTR Projects that provide the Fund long-term
ownership of a portfolio of institutional-grade BTR assets.
BTR Projects will be acquired where the underlying residential property investment provides the following:
• Earnings accretive to the fund and will provide opportunities for growth through active asset
management;
• Stability of investment performance for investors; and
• Opportunity for capital gain over time to achieve the Fund’s target 10 year 2x equity multiple.
6.2 Strategy
The Fund’s strategy is to assemble a portfolio in locations To assemble the portfolio, the Fund will invest in:
where there is demonstrable demand for affordable 1. Existing Du Val sponsored BTR assets; and
accommodation, and the provision of quality rental 2. New build Du Val sponsored BTR assets.
accommodation fulfils a critical societal need while
contributing more broadly to rebalancing the housing The Fund will leverage Du Val’s BTR operating experience
sector. The strategy of the Fund is to assemble assets which and relationships with Community Housing Providers,
will provide one of the most secure investment propositions Government agencies and sovereign wealth funds to
within the New Zealand property market, where there is a establish the portfolio.
long-term requirement for housing.
For full details of the Du Val BTR Fund’s initial BTR Portfolio,
Target stabilised cash returns to the Fund from the portfolio financial performance and target investment see Financial
aim to exceed >8% per annum and provide opportunities section of this IM.
for growth through active asset management. The
portfolio assembled will be of an institutional grade
and after a period of not less than 10 years the
Fund will seek an exit by way of Initial Public Offering (IPO)
or trade sale where the distribution to investors on exit is
target equity multiple of 2x (10 years).
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7. Investment Highlights
7.1 Description of the Offer
This is an Offer to Qualified Investors, of New Zealand, Distribution Policy. The Fund will target a return of 8%
Singapore and Hong Kong, for Units in the Fund. Units return per annum; and a target equity multiple of 2x
give you a stake in the ownership of the Du Val Build (10 years).
to Rent Limited Partnership (the Fund).
All BTR Assets acquired by the Fund will be managed
The Fund is raising new capital to establish a by Investment Portfolio Management Limited
BTR portfolio, comprising initially of the proposed Partnership (IPM) an established professional
acquisition of two separate properties, the first property and investment management firm (see
being situated at 69 McKenzie Road, Mangere, Section 9).
Auckland and the second at 2-6 May Road, Mangere,
Auckland (Initial BTR Assets), and subsequently Investor Units will be allocated upon the Minimum
further qualifying Du Val sponsored BTR Assets. Subscription Close Date, and subject to the GP’s
approval of the Investor’s entry to the Fund in
Investors will be entitled to receive a quarterly accordance with the Limited Partnership Agreement.
distribution declared pursuant to the Fund’s
7.2 Treatment of Investment Funds
Each Investor, of the Units available, will receive one Unit for every dollar of that Investor’s investment into the
Fund. This means that an Investor’s Units represent their ownership stake in the Fund.
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The Properties
MAY ROAD STUDIO APARTMENTS
2-6 May Road
Valuation $ 20,120,000
Units 99 units | 11 apartment blocks | one unit title per block
9 dwellings per block
Car parks 39
Land Areas 5,093m2 total
GFA 3,215 m2 (approx)
Levels and Height 2 Levels
Lease Details 36 units subleased to Compass Housing Services Co
at $348 per week plus GST.
Lease commenced on November 2016 with 2 x 5
year Right of Renewal.
Final lease expiry: November 2031
Rent reviews: Annual CPI
Completion Date Mid 2017
Rental Range $330 -400 pw
Legal Description
The property is currently contained in 11 separate Unit Title Registers which we
outline in the table below:
Unit Identifier Legal Description
Principal Unit 1 689587 Principal Unit 1 and AU 27, AU 28, AU 44 on Deposited Plan 485315
Principal Unit 2 689588 Principal Unit 2 and AU 40, AU 42, AU 43 on Deposited Plan 485315
Principal Unit 3 689589 Principal Unit 3 and AU 38, AU 39, AU 41 on Deposited Plan 485315
Principal Unit 4 689590 Principal Unit 4 and AU 35, AU 36, AU 37 on Deposited Plan 485315
Principal Unit 5 689591 Principal Unit 5 and AU 31, AU 33, AU 34 on Deposited Plan 485315
Principal Unit 6 689592 Principal Unit 6 and AU 29, AU 30, AU 32 on Deposited Plan 485315
Principal Unit 7 689593 Principal Unit 7 and AU 18, AU 19, AU 20 on Deposited Plan 485315
Principal Unit 8 689594 Principal Unit 8 and AU 24, AU 25, AU 26 on Deposited Plan 485315
Principal Unit 9 689595 Principal Unit 9 and, AU 21, AU 22, AU 23 on Deposited Plan 485315
Principal Unit 10 689596 Principal Unit 10 and AU 15, AU 16, AU 17 on Deposited Plan 485315
Principal Unit 11 689597 Principal Unit 11 and AU 12, AU 13, AU 14 on Deposited Plan 485315
Employment Hubs Transport Links
• Auckland Airport • State Highway 20 - 1 km
• Middlemore Hospital • Māngere Transport Station - 2 km
• Manukau CBD • Onehunga Transport Station - 4.5 km
• Otahuhu industrial hub
• Onehunga-Penrose industrial hub
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New Zealand’s COVID19 Level 3 and 4 response
tested the strength of Mangere East in a residential
context and the suburb passed with flying colours.
Middlemore Hospital and the multiple industrial hubs
that surround the area (Otahuhu, Mount Wellington,
Highbrook, East Tamaki), proved to be a solid source
of rental demand which meant this May Road site
maintained 100% occupancy even during lockdown.
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The Properties
MCKENZIE STUDIO APARTMENTS
69 McKenzie Road, Auckland
Valuation $14,640,000
Units 72 units | 8 apartment blocks | one unit title per block
9 dwellings per block
Car parks 64
Land Areas 4,693 m2 total
GFA 2487m2 (approx)
Levels and Height 2 Levels
Completion Date Mid 2017
Rental Range $340 - $370pw
Legal Description
The property is currently contained in 8 separate Unit Title Registers which we
outline in the table below:
Unit Identifier Legal Description
Principal Unit 1 680667 Principal Unit 1 and AU 11-13 (open carparks), Deposited Plan 483070
Principal Unit 2 680668 Principal Unit 2 and AU 14-16 (open carparks), Deposited Plan 483070
Principal Unit 3 680669 Principal Unit 3 and AU 17-19 (open carparks), Deposited Plan 483070
Principal Unit 4 680670 Principal Unit 4 and AU 20-22 (open carparks), Deposited Plan 483070
Principal Unit 5 680671 Principal Unit 5 and AU 23-35 (open carparks), Deposited Plan 483070
Principal Unit 6 680672 Principal Unit 6 and AU 26-28 (open carparks), Deposited Plan 483070
Principal Unit 7 680673 Principal Unit 7 and AU 29-31 (open carparks), Deposited Plan 483070
Principal Unit 8 680674 Principal Unit 8 and AU 32-34 (open carparks), Deposited Plan 483070
Employment Hubs Transport Links
• Auckland Airport • State Highway 20 - 1 km
• Middlemore Hospital • Māngere Transport Station - 2 km
• Manukau CBD • Onehunga Transport Station - 4.5 km
• Otahuhu industrial hub
• Onehunga-Penrose industrial hub
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The McKenzie Road studio apartment development
comprises eight recently built, two level residential
dwellings that each consists of nine studio units.
This development includes shared facilities such
as a kitchen and laundry. All studio bedrooms are
fully furnished. The location of this development
harnesses the rental demand created by massive
nearby infrastructure projects and employment
hubs. This is characterised by the project’s annual
vacancy rate of 0.5%. It should be noted that even
during New Zealand’s Level 3 and 4 response to
the COVID19 pandemic, this project and all projects
managed by IPM remained 100% occupied.
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7.3 Use of Investment Funds
The Fund will use the initial capital raised by the Fund to acquire the Initial BTR Acquisitions, and subsequent
capital raised to acquire to establish and acquire further BTR Projects.
Any investments made by the Fund must be approved by the Board of Directors of the GP.
7.4 Distribution Policy
The Fund will receive income from its BTR Investments.
The Fund will make distributions to its Investors in accordance with the Fund’s Distribution Policy, which will
be declared quarterly by the GP, and in accordance with the Limited Partnership Agreement. The GP will
review the Distribution Policy quarterly for the first 12 months before moving to an annual review once the
Fund has established itself.
The Fund will target an annual Investor return of 7c per Unit, subject to the Fund meeting all its financial
obligations. I.e. that the fees, costs, expenses, liabilities of the Fund will be paid first, before distributable
amounts are to be allocated pro rata to each Investor.
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7.5 Processes Relating to Exit
Investors will be able to exit as limited partners of the Fund, no earlier than 12 months after the Fund’s
Minimum Subscription Close Date, via the following processes, as set out in the Limited Partnership
Agreement:
1. Sale An Investor may sell their Units so long as the new investor meets the Qualified
Investor status, is approved by the GP, and adheres to the terms of the Limited
Partnership Agreement. The purchasing investor will take the whole or part of the
exiting Investor’s allocation in Units. Under this option, the exiting Investor grants
the GP a power of attorney to facilitate the sale of Units on that Investor’s behalf.
2. Secondary Market A secondary market (to facilitate the sale of Units) is maintained
and operated by Du Val Capital Partners. The secondary market will include a pool
of prospective wholesale investors that Du Val attracts through its usual network
and ongoing marketing. The disposal cost to an exiting Investor to sell their Units
via this secondary market will be fixed at 0.5% of total value of Units being sold.
3. Compliance Listing & IPO In the event that the Fund or any part of the global Du Val Group lists
its common stock on a registered exchange, the GP is able to convert Investor Units into shares
of that listed entity.
All exits by an Investor, via sale or secondary market, requires written notice to the GP of not less
than 60 working days’ notifying of their intention to transfer or otherwise sell their Units in the Fund.
Those Units are then valued by the GP for a set sum, in accordance with the Investor’s Unit holding
in the Fund (which will be payable to the Investor).
The method of Unit valuation will be at market value as determined by an independent valuation.
The GP, at the cost to the Fund, will annually engage with an independent valuer to determine
current annual value. Please note that assets/BTR projects under construction at the time of the
valuation will not be included.
7.6 Fees & Expenses
Management Fees: Under the Limited Partnership Agreement, the GP is entitled to an annual
management fee equal to 0.5% of completed Gross Asset Value (GAV) excluding BTR Projects under
construction. The management fee shall be paid out of the assets of the Fund and is payable to
the GP quarterly in advance on the first Business Day of each financial quarter of the Fund. The
GP is also entitled to reimbursement from the Fund for its operational expenses (including any
accountancy and legal expenses).
Investor Exit Fees: The GP is entitled to charge any Investor wishing to transfer all or part of its
limited partner interest in the Fund, subject to the consent of the GP under the Limited Partnership
Agreement, fees associated with facilitating such a transfer (Resale Fees).
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Fund Financials
Current Target BTR Project Investments
The Fund’s Initial BTR Acquisitions being the BTR Project at May Road and
McKenzie Road, Auckland.
Figure 1: Capital Structure
FUND CAPITAL STRUCTURE
Current Capital Structure
Net Contract Passing Income $2,146,391
Purchase Price 6.17% $34,760,000
Total Assets $34,760,000
Capital Structure at Fund Close
BTR Fund Investment $18,000,000
Term Debt $17,380,000
Total Investment $35,380,000
Debt Facility
Total Debt Facility on Fund Close 50% $17,380,000
Total Debt $17,380,000
Financing Costs
- Loan Brokerage Fee 0.65% $112,970
- Loan Establishment Fee 0.50% $86,900
Total Financing Costs $199,870
Establishment Costs
- Legal $75,000
- Accounting $15,000
- Valuation $30,000
- Marketing $175,000
Total Establihsment Costs $295,000
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Figure 2: Forecast 10 year cash returns to the Fund
FUND CASHFLOW
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Income
Net Passing Income $2,146,391 $2,176,441 $2,206,911 $2,237,808 $2,269,137 $2,300,905 $2,333,117 $2,365,781 $2,398,902 $2,432,487
Total Income $2,146,391 $2,176,441 $2,206,911 $2,237,808 $2,269,137 $2,300,905 $2,333,117 $2,365,781 $2,398,902 $2,432,487
Expenditure
Debt Servicing $618,728 $618,728 $618,728 $618,728 $618,728 $618,728 $618,728 $618,728 $618,728 $618,728
Fund Management Fee $173,800 $184,054 $194,913 $206,413 $218,592 $231,489 $245,146 $259,610 $274,927 $291,148
Fund Administrative Expenses $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000
Total Expenses $827,528 $842,782 $858,641 $875,141 $892,320 $910,217 $928,874 $948,338 $968,655 $989,876
Gross Profit $1,318,863 $1,333,658 $1,348,269 $1,362,666 $1,376,817 $1,390,688 $1,404,243 $1,417,443 $1,430,247 $1,442,611
Target Fund Return per $1 .00 Unit 7.33% 7.41% 7.49% 7.57% 7.65% 7.73% 7.80% 7.87% 7.95% 8.01%
Figure 3: Forecast Equity Investment to the Fund
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Equity Investment $18,000,000
Forecast Year on Year Capital Growth 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%
Asset Value $34,760,000 $36,810,840 $38,982,680 $41,282,658 $43,718,334 $46,297,716 $49,029,281 $51,922,009 $54,985,408 $58,229,547
Accumulated Capital Gain - $2,050,840 $4,222,680 $6,522,658 $8,958,334 $11,537,716 $14,269,281 $17,162,009 $20,225,408 $23,469,547
Accumulated Gross Profit $1,318,863 $2,652,522 $4,000,791 $5,363,457 $6,740,274 $8,130,963 $9,535,206 $10,952,649 $12,382,896 $13,825,506
Accumulated Total Return $1,318,863 $4,703,362 $8,223,470 $11,886,115 $15,698,609 $19,668,679 $23,804,487 $28,114,658 $32,608,303 $37,295,053
Accumulated Absolute ROI % 7.33% 26.13% 45.69% 66.03% 87.21% 109.27% 132.25% 156.19% 181.16% 207.19%
Forecast IRR 17.38%
Forecast Equity Multiple 0.07 0.26 0.46 0.66 0.87 1.09 1.32 1.56 1.81 2.07
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Figure 4: Profit and Loss Statement Figure 5: Balance Sheet
PRO FORMA AT PRO FORMA AT
FUND P & L FUND CLOSE
FUND BALANCE SHEET NOTE
FUND CLOSE
Income Current Assets
Net Passing Income $2,146,391 BTR Asset $34,760,000
Total Income $2,146,391 Total Assets $34,760,000
Expenditure Current Liabilities
Debt Servicing 3.56% $618,728 Term Debt 50.00% $17,380,000
Fund Management Fee 0.50% $173,800 Total Liabilities $17,380,000
Fund Administrative Expenses $35,000 Net Assets $17,380,000
Total Liabilities $827,528 Unitholders Equity
Gross Profit $1,318,863 Issued Capital $18,000,000
Total Unitholders Equity $18,000,000
Shareholders Equity
Issued Capital $18,000,000 Net Tangible Asset backing per
0.97
$1 .00 Unit
Assumptions
Below is a summary of the assumptions on which the above financial information is based on.
Net Passing Income: GST
Net Passing Income is calculated as gross rental income plus All figures are GST exclusive.
carparking and laundry income less outgoings. There is an
annual rent increase in line with CPI and assumed vacancy risk Property Management Services
of 4%. Outgoings comprise of, but are not limited to, operating The Fund will appoint IPM as the Property Manager of all BTR
expenses, long term maintenance, rates, insurance, body Assets on its standard industry terms and at a rate of 9% plus
corporate and letting and management fees. GST on all Rental Income.
Debt Servicing Capital Growth
Interest only senior debt facility secured by way of mortgage Year on year capital growth based on a 5 year historic average
at a fixed interest rate of 3.56% per annum. The facility will be growth rate of unit dwellings in Manukau. Source: Real Estate
reviewed annually. Investar.
Fund Management Fee IRR
The annual fund management fee has been set at 0.5% of Gross Forecast annualised IRR assumed on exit at Year 10.
Asset Value of the BTR Fund.
Residential Tenancy Act 1986
Fund Administrative Expenses All properties are governed by the Residential Tenancy Act 1986,
Compliance, administrative and valuation costs. except where subleased to Compass Housing Services Co.
Actual Results
Please note that past performance is not indicative of future performance. Actual results may differ from the forecast financial statements. The resulting variance may be
material. We give no guarantee or assurance that the forecast financial information presented will be achieved.
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Directors:
Herbert Morton Ltd confirm these figures are reflective of the calendar
PETER S. MORTON BCom, CA, CFE
year for the specified properties for management purpose
NICOLA E. ADAM BBus, CA
KYLE S. OWENS BBus, CA
Figure 6: May Profit and Loss Statement - Figure 7: Mckenzie Profit and Loss Statement -
1 January 2018 to 31 December 2020 1 January 2018 to 31 December 2020
12 Months to 12 Months to 12 Months to 12 Months to 12 Months to 12 Months to
31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 18 31 Dec 19 31 Dec 20
Income Income
Rent $1,604,585 $1,636,044 $1,693,025 Rent $1,221,467 $1,185,481 $1,228,208
Laundry $15,555 $12,763 $11,088 Laundry $12,045 $12,380 $9,275
Total Income $1,620,140 $1,648,807 $1,704,113 Total Income $1,233,513 $1,197,861 $1,237,483
Less: Property $86,971 $89,855 $90,363 Less: Property $109,932 $106,693 $108,426
Management Fee Management Fee
Gross Profit $1,533,169 $1,558,952 $1,613,750 Gross Profit $1,123,581 $1,091,168 $1,129,057
Less Operating Expenses Less Operating Expenses
Body Corporate Fees $3,739 $2,750 $2,750 Body Corporate Fees $1,600 $2,000 $2,000
Building Compliance $4,379 $8,037 $15,674 Building Compliance $10,821 $6,354 $8,065
Cleaning $35,250 $32,920 $30,420 Cleaning $40,350 $37,470 $34,560
Grounds Maintenance $14,169 $8,600 $7,730 Grounds Maintenance $13,959 $8,446 $8,400
Hospitality Internet $9,751 $8,650 $10,380 Hospitality Internet $8,824 $6,408 $8,544
Insurance $15,816 $18,328 $10,741 Insurance $16,772 $13,165 $11,318
Light, Power, Heating $63,395 $59,726 $60,300 Light, Power, Heating $46,927 $49,946 $45,621
Long Term Maintenance $27,090 $36,280 $36,000 Long Term Maintenance $27,000 $36,610 $36,000
Rates $32,819 $33,560 $34,809 Rates $25,647 $24,744 $25,779
Repairs and Maintenance $13,674 $17,964 $21,993 Repairs and Maintenance $25,506 $18,138 $22,697
Repairs and Maintenance - $0 $0 $11,360 Repairs and Maintenance - $0 $0 $6,206
Common Area Common Area
Rubbish Collection $10,553 $14,944 $16,070 Rubbish Collection $10,140 $12,664 $12,706
Security and Fire $6,218 $3,799 $4,399 Security and Fire $4,079 $2,041 $4,761
Monitoring Monitoring
Telephone & Internet $5,217 $5,485 $5,363 Telephone & Internet $9,229 $11,747 $11,908
Water $18,119 $19,155 $26,061 Water $20,643 $24,344 $31,923
Total Operating Expenses $260,190 $270,199 $294,050 Total Operating Expenses $261,498 $254,077 $270,489
Operating Profit $1,272,979 $1,288,753 $1,319,699 Operating Profit $862,083 $837,091 $858,568
Herbert Morton Limited
PO Box 86 19 Victoria Street Cambridge 3450
Telephone (07) 823 1203 Fax (07) 827 8125 Email admin@herbertmorton.co.nz
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8. Explaining Build To Rent (BTR)
8.1 What is BTR?
Build to Rent (BTR) properties are large real estate developments purpose built for
occupants seeking long term rental accommodation.
A key purpose of BTR is to address housing issues around the world, particularly in high
density cities. In 2018, the NZ Government reported a housing deficit of around 45,000
houses in Auckland (A Stocktake of NZ Housing, Crown 2018).
Features of BTR properties, depending on scale, can include the following:
• Security of tenure for tenants;
• Held in single ownership structure;
• Affordable rental accommodation for tenants;
• Predictable rent increases (usually in line with inflation);
• Dedicated facilities management to readily respond to tenant requirements
ranging from maintenance to provision of services (e.g. cleaning, storage of small
deliveries, etc.);
• Individual character is enabled where tenants can elect either unfurnished options
or have the convenience of a fully furnished unit;
• Community living is created via shared facilities;
• Communal amenities are often part of the offering (e.g. communal kitchens,
laundry facilities, gardens etc.); and
• Close proximity to major transport hubs, schools, childcare, retail and entertainment.
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8.2 Market Opportunity For BTR In NZ
Auckland’s population is projected to grow by circa 275,000 is driven by the fundamental point of difference that BTR
people in the next ten years. Based on the Census 2018 exhibit over current rental stock and operation. Common
household density of 3.15, this indicates a need for 87,300 tenant issues that BTR solve include;
new dwellings, or supply of circa 8,700 dwellings per year. • Poorly maintained dwellings. NZ’s rental stock is
generally in poor condition. In this context, new build
Auckland’s density of 3.15 people per dwelling is higher than rental property holds significant appeal
the national average of 2.82, reflecting of excess underlying • Unexpected rent increase. BTR leases stipulate when
demand for housing over housing supply, and affordability and how future rent increases will be assessed,
constraints. eliminating uncertainty for the tenant
• Landlord selling. This has been particularly prevalent
Various articles and research in the last year have in the Auckland market where asset growth has
highlighted the demand brewing from prospective tenants, encouraged investors to cash in assets, meaning that
particularly in Auckland, for BTR properties. the tenants would need to vacate at short notice.
Unlike traditional rental stock, BTR tenure has long term
Research by CBRE has highlighted the strong underlying security
demand for BTR property over traditional rental property
Rental demand and returns are expected to continue to The UK is relatively more recent, having started around ten
grow over the next 10-year period given these key drivers. years ago to now represent 0.16% of stock with 40,000 BTR
Overall, Auckland residential rents have risen from $396 dwellings.
to $582 per week on average across the last 10 years, a
compound annual growth rate of 4.4% (source: MBIE July If New Zealand was to follow the UK trajectory, we should
2020). Capital growth in the last 10-year period for Auckland potentially have 3,300 BTR units by 2025 (0.16% of housing
residential property overaged 8.4% per annum. stock). Given the Auckland housing demand outweighs the
supply, there is an opportunity to bring intelligence from long
Excluding Du Val and related party projects, 331 BTR term industry analysis, particularly from BTR case examples
apartment units have completed construction in the in the UK and US, to efficiently establish a BTR sector in NZ.
past two years. There are 152 BTR apartment units under
construction in Auckland with hundreds more in the pre- To date new entrants to the NZ BTR market have been of
construction/design stage. small scale; rather than that typically seen in the established
US and emerging UK and Australian markets. By leveraging
New Zealand’s BTR market is very new but has serious the existing Du Val rental properties to create a cornerstone
potential for rapid scalability. CBRE have assessed the investment for the Fund, the Du Val Build to Rent Limited
emergence of international BTR markets to asses how NZ Partnership is uniquely placed to become NZ’s first and pre-
might evolve in the short to medium term. eminent BTR fund.
The US BTR market started in the early 1980s and is now
considered highly mature, with institutional grade BTR
comprising 4.5% of total housing stock (i.e., 6.3 million units).
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9. Property Management (BTR)
TOP INVESTMENT PORTFOLIO
MANAGEMENT TEAM
(LJ HOOKER 2018-20)
0.5% ANNUAL VACANCY RATE
ACROSS FOUR DEVELOPMENTS
9.1 Best Practise Property Management
IPM is Du Val’s award-winning property and facilities management division specialising in the
management of Build-to-Rent and purpose-built Buy-to-Let multi-unit residential communities.
IPM provides a full range of Managing Agency services on behalf of institutional and individual owners
forming an integral part of Du Val’s 360-degree approach to the ownership and management of
property through the lifecycle of investment.
For the past three consecutive years IPM has won the Top Investment Portfolio Management Office
award within the LJH network.
IPM is a wholly owned subsidiary of the Du Val Group NZ Limited.
9.2 Property Management Services
The Fund will appoint IPM as the Property Manager of all BTR Assets on its standard industry terms
and at a rate of 9% plus GST on all Rental Income. IPM takes pride in protecting and maximising the
full potential of all investment property, being chiefly responsible for the letting management of all
BTR Assets, covering the tenancy journey from vetting and placing tenants, vacancy management,
weekly rent collection and a proactive rent arrears policy, routine inspections and maintenance
programme, to post tenancy inspections and (if necessary) appearances at the Tenancy Tribunal.
9.3 The IPM Team
Du Val’s award-winning IPM team are trained to the highest level of NZQA standards for the New
Zealand Property Management industry. The team follows robust and proven systems to ensure
low levels of vacancy, zero tolerance when it comes to arrears and a high level of maintenance
management. IPM understands the importance of maximising returns to Investors by balancing
rental rates to achieve the best returns whilst also maintaining high occupancy.
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Du Val Chief Operating Officer, Charlotte Clarke oversees each of the divisions under the Du Val
umbrella. From funding and development, through to selling and post completion management,
Charlotte ensures each arm of Du Val’s investment journey operates in sync and with efficiency. With
an extensive career leading international businesses in property, investment and sales, Charlotte
brings experience hard to come by in New Zealand’s property industry.
As an experienced investor, Charlotte brings valuable insight that sets our business apart as a
development company truly built for this audience.
Malcolm Forsyth, Director - Malcolm has over 33 years experience in real estate. Starting in Waikato,
his rich career spans sales, project management, branch management, divisional management
and the shareholding of a multi-office within a New Zealand franchise covering sales & property
management.
In 2000 an opportunity arose in the Bay of Plenty where he ran successful offices for a second New
Zealand franchise company as shareholder & Director of offices in Tauranga, Pyes Pa, Papamoa,
Rotorua and Taupo. This operation covered all facets of sales and managed in excess of 1000 rental
properties on behalf of landlord clients.
It was in 2013 that IPM was established in Auckland, serving as a specialised property management
company in conjunction with a major Auckland developer. IPM is now an award-winning Property
Management company through its franchise arrangement with the LJ Hooker & Harveys brand.
Malcolm has always strived to provide a satisfying and rewarding experience for all of our clients
at all times and understands the responsibility of managing a client’s investment should never be
underrated or treated with anything except the care and attention such a responsibility deserves.
Makayla Walters, Senior Property Manager – Makayla originally joined our team as an administrator
and has worked for many years as a Letting Manager, more recently taking on the role of Property
Manager. Having experience in all aspects of Investment Management, she understands how each
role links and relies on each of these skill sets to ensure the quality management of an investment
property. Makayla is currently studying for her New Zealand Certificate in Property Management.
Mackenzie Stratton, Property Management Administrator - Mackenzie joined our team only a year
ago but hit the ground running and has since been a key part in assisting our team across multiple
disciplines. Our ability to work efficiently and effectively is due to the skills we have across the multiple
facets of property management and Mackenzie is a large part of this. Mackenzie, like others in our
team have done so, is currently studying for her New Zealand Certificate in Property Management.
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