The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision. If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
Wholesale Co-Investment Opportunity - Strategic Christchurch Industrial Asset
SIO is establishing a syndicate to invest in a strategic industrial asset that generates strong income with fixed growth and meaningful long-term optionality. The property comprises approximately three hectares of flat, well-located land with dual access in the sought-after Russley industrial precinct. The buildings comprise 14,200sqm of warehousing, manufacturing and office space, recently upgraded and refurbished by SIO to meet the long-term needs of the Tenant, Rubisco Natural Fibres.
The investment offers immediate cash flow through a new 10-year lease to an established primary sector business with fixed 2.5% annual increases. The capital structure is deliberately conservative with debt limited to a 45% LVR and SIO is co-investing $1.7m (15%) in the syndication.
This investment is anticipated to deliver a pre-tax cash return of 7.75% per annum over the initial three years.
Whilst occupying a large strategic site in a highly developed location, the asset stands on its own merits as a long-term income-producing property. At the same time, the size of the landholding, its location and dual access provide genuine long-term optionality should the highest and best use of the site evolve over time.
Key Investment Points;
- Acquisition price of $21.6m and low debt level of 45% LVR
- SIO co-investing $1.7m alongside new investors
- Average pre-tax cash return of 7.75% per annum for the first 3 years
- Strategic ~ 3ha landholding
- Substantial industrial premises recently upgraded and refurbished by SIO
- Established primary sector tenant with 10-year lease and 2.5% annual rental growth
SIO is raising $9.90m with parcel sizes starting from $500k. The offer is available to wholesale investors only and closes on the 31st August, with funds required by 9th September.
SIO will host online investor calls and Q&A session on: Tuesday 25th August at 6pm
The last raise for SIO was oversubscribed. To recieve more information please register your interest in this investment below.
