The 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 if you are a person who comes within Schedule1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes 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. If you fall within Schedule 1, clause 3 of the FMCA as a result of this exclusion, you may not receive a complete and 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.
McLeans Mansion provides wholesale investors the chance to participate in a private credit offering managed by longstanding provider Alpha First Securities Ltd.
Highlights:
- 8.25%p.a. return paid monthly (less RWT)
- $4,902,670 loan secured by 1st mortgage security
- Christchurch city centre location
- Loan to value 61%
- Term to 31 March 2027
Offer:
McLeans Mansion, 387 Manchester Street, Christchurch represents a freehold landholding of 5,505sqm with a Category 1 Heritage Listed Mansion in situ offering 2,100sqm of accommodation. McLean’s Mansion was built from kauri in 1900 as the residence of Allan McLean and following his death became a home for women facing hardship. In 1954 the property was sold to the Government and repurposed as a dental training school which operated until 1982. It was then sold to the Christchurch Academy and used as a vocational training centre.
Following damage from the 2011 Canterbury Earthquakes the property was originally earmarked for demolition. The Environmental Court upheld a Heritage NZ decision to decline an application to demolish the mansion first made by previous owners in 2013. Following a public campaign in 2018 the McLean’s Mansion Charitable Trust was formed and purchased the property in order to restore and repurpose the mansion into an art gallery with community and educational uses.
A comprehensive programme of earthquake remediation and restoration was undertaken by the previous owner including new foundations, steel reinforcing, roof replacement and restoring the timber frame windows. The Council granted $1.9m towards these works with the total investment to date indicated to be around $8m. Whist the property is heritage listed this largely relates to the exterior with the internal area more flexible for future rework.
Works to date have been approved and signed off by Council with the building now representing a strengthened (designed to 100% of NBS standard) stable shell. Well regarded local firm, Cooks Brothers Construction, acted as main contractor here.
The Borrower has purchased the building and engaged with the Trust’s professional team in order to carry out full due diligence on the works carried out to date.
The Opportunity:
There has been significant investment in Christchurch’s central city following the 2011 earthquake and the city has entered a period of renewed confidence. The new Conventions Centre, Sports Stadium, Performance Arts Precinct, Cathedral Square and Riverside Terraces hospitality area are all within walking distance of the subject property. Williams Corporation launched in December their flagship development known as “Manchester Square” consisting of 111 apartments and commercial space. In summary the city centre has transformed and now offers a vibrant destination to live, work and play.
The Borrower will continue working with the existing project team along with their own advisers to finalise their development plans. The current proposal is a combination of an art gallery, hospitality and office space to work best with the existing layout and maximise value. In addition, part of the property includes a strip of land (966m2) which fronts on to Bealey Avenue. This will be subdivided and a separate title created to allow for this to be onward sold for residential development. Sale proceeds here would reduce the loan to value to 51%.
Alpha First:
Alpha First are a private credit platform specialising in property funding. Established in 2016 the Cambridge based business has successfully invested over $750m in the property sector. Alpha provide wholesale investors access to credit approved, standalone investment opportunities secured by first mortgages. Each loan is individually reviewed and approved by a highly experienced and qualified finance and management team. Detailed Investment Information Packs are provided for every opportunity ensuring clear visibility in borrower details and loan structure. Alpha First are the appointed agent for each loan and proactively manage all loans through to maturity with regular reporting on key milestones. Interest is paid to investors monthly (less RWT) providing a consistent income stream.
Minimum investment of $100,000.
Only available to Eligible and Wholesale Investors under the Financial Markets Conduct Act 2013. Alpha First arranges mortgage investments but is not the issuer or a guarantor and does not provide any financial advice whether or not an investment is right for you. Investors should consider obtaining financial advice before investing.
