The opportunity exists for wholesale investors to express interest in purchasing units in the DABS 585 Main Street PN LP. There are two different parcels on offer:

1. 150,000 units for sale to replace existing investor capital. This represents 2.94% of the equity invested in the Limited Partnership.
2. 300,000 units for sale to replace existing investor capital. This represents 5.88% of the equity invested in the Limited Partnership.

Location

Main Street is the main eastern arterial traffic route into and out of the city. The Square and Palmerston North City’s central business area is approximately 800 metres to the southwest. The intersection of Princess Street and the main inner city Ring Road system is within 300 metres. Tenants and businesses in the general location include Smiths City, Plumbing World, Honda Cars, Central Orthotics and Whitehead Accountants.

Property: 

585 Main Street, Palmerston North

• 1,507 sqm freehold site 
• Ground retail and first floor office accommodation
• 31 car parks 
• 100% tenanted – 1 tenant, Enable New Zealand Ltd

Building

The property was formerly part of a larger title that included the Mid Central DHB and associated health services in the adjoining building. The property comprises an attached commercial office/retail building that fronts Main Street. The original structure dated back to the 1960s. Significant upgrade work on the property was undertaken in the mid 1960’s. The previous owner completed ground floor works for Enable in 2015/16 and first floor works in 2017 including raising the roof and installing a lift. In 2019 the property was further redeveloped and partially reconstructed to meet the requirements of Enable (a health service provider).

Property Zone

Zoned “Outer Business” under Plan Change 1 of the District Scheme. The “Outer Business” zone is located on the periphery of the “Inner Business” zone on the four main entrances to the city and offers convenient access to the arterial road network. 

Strengths 

• High profile frontage to Main Street (main arterial route)
• Modern/refurbished well presented building
• Good on-site car parking provision 
• Tenant is a health care provider supported by DHB and government organisations

Distributions summary

$150,000 units

Apr 2021 – Oct 2022: 6% Monthly Return, $9,000 Annual Return pre-tax

Nov 2022 - current: 4% Monthly Return, $6,000 Annual Return pre-tax

$300,000 units

Apr 2021 – Oct 2022: 6% Monthly Return, $18,000 Annual Return pre-tax

Nov 2022 - current: 4% Monthly Return, $12,000 Annual Return pre-tax

Following increases in the OCR this has impacted the cashflow for the Limited Partnership. As a result, the monthly distribution was reduced from 6% to 4% in November 2022. The monthly distribution is not certain and is subject to change.

For further information please see the investor's information pack in the documents tab, or click the "Register Interest" button to be put in contact with the Manager.