NZ Warehousing & Logistics Property Fund LP
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Our Latest Investment Opportunity
NZ Warehousing & Logistics
Property Fund LP
6.75P.A
%
PROJECTED
CASH RETURN
PAID MONTHLY
Offer restricted to “Wholesale Investors” under clauses 3(2) and 3(3) of Schedule 1 to the Financial Markets Conduct Act
2013 (or to any other person to whom an exclusion applies under Schedule 1 of that Act). *Projected pre-tax return for full
one year period. Details on how the return will be calculated and the risk associated with the investment and return are
set out in the Information Memorandum.
NZ Warehousing & Logistics Property Fund LP: Expression of Interest: Industrial Properties Servicing Growth Sectors + 6.75%* projected cash return paid monthly + Three industrial properties in Waikato and Hawkes Bay + Warehouses, workshops and logistics - risk spread across multiple tenants + Exposure to growth sectors - agriculture, horticulture and construction + Invest with property professionals with a proven track record + $100,000 minimum investment for wholesale/eligible investors only + Offer closes 20 July 2021, or earlier if fully subscribed *Projected pre-tax return for full one year period. Details on how return will be calculated, and the risk associated with the investment and return, are set out in the Information Memorandum. Investment Strategy A Portfolio Approach E+O’s NZ Warehousing & Logistics Property Fund LP (the Limited Partnership) will acquire a portfolio of industrial properties that provide investors with a competitive return, diversification by tenant, location, and industry, and potential growth in property values over time. Drawing on their property expertise, E+O have identified initial properties in regions with strong local economies driven by industries that have proven resilient to the pandemic including agriculture, horticulture, food processing, manufacturing, infrastructure development, and construction. Further properties with similar attributes will be added to the portfolio over time. Target Returns The Limited Partnership will target distributions to investors of at least 6.75% per annum (Projected Cash Net Pre Tax Annual Yield on Equity).
Key Property Details Property Details 146 Collins Road 822 Omahu Road 18 Cooper Street Portfolio Purchase Price $6,050,000 $2,650,000 $8,400,000 $17,100,000 Market Valuation $6,250,000 $2,650,000 $8,400,000 $17,300,000 Gross Yield 7.75% 6.53% 5.00% 6.21% Annual Rent $468,624 $172,920 $420,000 $1,061,544 WALT 1.95 years 2.6 years 10.47 years 5.43 years Settlement Dates 25/06/2021 25/06/2021* 1/10/2021 Equity $11,000,000 Debt $7,550,000 Forecast Distributions ** 6.75% * Settlement Date to be confirmed. 25/06/2021 is the earliest date expected ** Projected cash net pre tax annual yield on equity
146 Collins Road, Hamilton
Property Details
Multi tenanted warehouse with
Property Type
12 separate tenantable areas
Land Area 9,432 sqm
Seismic 67% NBS
Annual Rent $468,624
WALT 1.95 years (including underwrites)
Torpedo7, Noel Leeming, Toplink
Global, Gecko International, Tommy's
Tenants
Trailers, Bench Works, Great Doors, J
Engineering and others
Location
The ‘Golden Triangle’ region encompassed by Hamilton, Auckland and Tauranga contains
more than half New Zealand’s population and generates a large share of the nation’s
GDP. Hamilton’s importance as a distribution node continues to grow, fuelled by Ports of
Auckland’s inland port at Horotiu and a planned facility by Port of Tauranga. Upgrades to
State Highway 1 and the launch of commuter rail services to Auckland have reinforced the
city’s importance as a goods and services hub.
Underpinning this expansion is a booming agricultural sector plus fast-growing tech
and manufacturing sectors. Waikato is the country’s dairy production powerhouse, with
forestry, construction and associated enterprises also making a strong contribution.
Construction
Originally built in the 1970s, the property has been substantially refurbished in recent
years. Major works in 2016 upgraded seismic capacity to 67% NBS and created a mix of
industrial warehouse, workshop and storage spaces. There is a growing demand for these
types of tenancies which are well suited to many business needs.
Tenants
Anchor tenants Torpedo 7 and Noel Leeming are part of the Warehouse group – one of
NZ’s largest companies. These two tenants run a call centre and warehousing operation
from the site. The majority of tenants represent machinery supply, construction related
and distribution businesses, which are connected to growth industries for the region.
Rental underwrites of 3-6 months have been given by the vendor for tenants that have
under 6 months remaining on their leases. While the average lease term is lower than
that of a single tenancy, E+O have the experience and proven track record to maximise
occupancy of these smaller, multi-tenanted properties.
822 Omahu Road, Hastings
Property Details
Property Type Multi tenanted industrial with 8 units
Land Area 1,526 sqm (more or less)*
Seismic 100% NBS
Annual Rent $172,920
WALT 2.6 years
Amalgamated Packaging Brokers
Tenants Aristotle Holdings
Innovate Maintenance Solutions
Location
Positioned near the Hawke’s Bay Expressway, these eight industrial units are ideally placed
to benefit from a buoyant Hawke’s Bay economy, which currently generates $8.45 billion per
annum.
The region’s thriving wine, horticultural, pastoral and forestry sectors have led the way, with
exports being channelled through the region’s port. Napier Port is New Zealand’s fourth
largest, and it recently raised $234 million through a successful IPO. With population growth
and economic expansion supporting the region’s prosperity, there is strong demand for high-
quality industrial assets of this nature.
Construction
These newly completed units are constructed from concrete tilt-slabs and timber. 4.5m roller
doors at the front of each unit open onto a 5.5-metre stud, rising to 7m at the rear. This layout
provides easy access and flexible space for a variety of tenants. There is also capacity for a
mezzanine to be added, subject to council approval.
Tenants
All eight units are leased and producing revenue. As previously mentioned, the average lease
term on these types of units is lower than a single tenancy. However, the region’s growth
is fuelling a growing demand for these types of tenancies and E+O has the experience and
expertise to ensure multi-tenancies of this nature are well managed and occupancy optimised.
* Land area is still to be finalised and is subject to survey.
18 Cooper Street, Havelock North
Property Details
Property Type Warehouse including cool store
Land Area 6,015 sqm
Seismic 75% NBS
Annual Rent $420,000
Tenant Cherri Global Limited
10 years from 1 October 2021,
expiring 30 September 2031
Term
Right of renewal 2 x 5y, final
expiry 30 September 2041
Location
Population growth in the Havelock North area is helping drive a transition from light
industrial to higher density and higher value usage, such as retail superstores or mixed-use
retail and residential. The neighbours in this location include a McDonalds restaurant, a Mobil
service station and an ITM hardware store.
Featuring a built-in cool store, this property provides attractive options for Hawkes Bay users
looking to supply supermarkets, home delivery services or export supply chains. The cost
and complexity of building new cold storage facilities means that demand for assets of this
type is bound to remain strong.
Construction
The main structure was built in 1983 and has benefited from a number of additions and
alterations over the years. Its 2,946 sqm footprint comprises a large packhouse and cool
store along with office space of 438 sqm. The cool store facility was added in 2015 and
incorporates modern refrigeration and control systems.
Tenants
With operations in Central Otago as well as Hawke’s Bay, Cherri Global has a strategy
of providing world markets with premium cherries. Its goal is to double the size of New
Zealand’s cherry industry.
Cherri Global has committed to a new 10-year lease with three-yearly market rent reviews.
This provides a strong foundation for the future revenues of the Limited Partnership.
Initial Capital Raise
The Limited Partnership is raising a total $11,000,000 through the issue of
11,000,000 Units of $1 each to qualifying wholesale or eligible investors. This capital
together with mortgage funding will be used to purchase the three initial properties.
Due Date for Subscription of Units: 20 July 2021
The minimum investment is $100,000, with additional increments of $50,000.
Risks
Investments in syndicated commercial + Interest rate and bank risk: interest rate
and industrial property does carry risk. movements are unable to be accurately
Prospective investors must determine predicted and an increase in interest
whether the investment is appropriate rates may affect returns and bank
having regard to their own investment covenant compliance.
objectives and financial situation.
Investors are encouraged to seek + Capital expenditure risk: capital
independent financial, tax and legal expenditure for a property may be
advice on these matters. more than budgeted. No warranty or
representation is made in respect of
The Limited Partnership and the General whether the revenue, expenses, or any
Partner (E+O Property Syndication capital appreciation in the future will be
Limited Partnership) considers that the achieved.
most significant risk factors that could
affect the value of Units in the Limited Actual results are likely to be different
Partnership are: to the forecasts since anticipated events
frequently do not occur as expected
+ Loss of rental income: a default by and the variation may be significant.
any tenant in paying rent, rental and Accordingly, Erskine + Owen, its
outgoings may affect forecast returns. shareholders, directors, employees,
advisors or agents nor any other person
+ Re-leasing: costs may be incurred in any can provide any assurance with respect to
future re-leasing of a property and such information.
failure to re-lease will likely affect its
value.
Next Step:
To receive a copy of the detailed Information Memorandum for the
NZ Warehousing & Logistics Property Fund LP contact:
JAMES COPSON PETER MCCONNELL
Email: jcopson@erskineowen.co.nz Email: pmcconnell@erskineowen.co.nz
Phone: 022 055 0770 Phone: 021 241 1120
Level 1, 103 Carlton Gore Road
Newmarket, Auckland 1023
New Zealand
+64 9 377 6463
info@erskineowen.co.nz
www.erskineowen.co.nz
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