OK Road Apartments – Premium Short Term Accommodation
MOD Finance Limited is pleased to present the opportunity to invest in a Premium Short Term Accommodation asset located at 64 Orangi Kaupapa Road, Wellington. This is a direct investment opportunity by way of ordinary shares and includes the land, building, professional management and free nights’ accommodation in accordance with the terms of the offer.
OK Road Apartments has been designed by Poneke Architects, Wellingtons urban infill specialists and is comprised of two, 2 bedroom, premium loft style apartments. The design exhibits understated elegance in its clean lines and linear form with the floor to ceiling glazing perfectly framing the breathtaking views of Wellington CBD and Lambton Harbour. The highly efficient floor plan provides for well-proportioned bedrooms, living and outdoor areas. Premium furnishings and ample off-street parking offer a home away from home experience for the premium corporate and leisure traveller alike.
MARKET AND ECONOMICS
The development is being undertaken to capture the unmet demand for premium accommodation in Wellington. Government, institutional, events and tourism provide a strong base for demand that is expected to grow once Takina Wellington Convention and Exhibition Centre is fully operational. Due to the strong domestic travel and broad visitor base, occupancy rates have already returned to Pre COVID levels. The existing mid range apartment accommodation that is available demands high nightly rates providing strong support for OK Road Apartments.
The property is under contract with resource consent obtained and the developed design complete. Construction is expected to commence in late 2023 following building consent. Construction will use offsite manufacture (OSM) through a local wellington OSM specialist.
The Target Return (from year two of operation) is a cash distribution of 7.35% p.a. (pre tax) plus the potential for capital growth.
Up to $1 million in new capital is sought to fund the project through to completion and operations. New shares are being issued in the company at $1.00 per share. The minimum investment is $75,000 and is open to wholesale investors only. The issuers are retaining 10% of the share capital to ensure alignment of interest with the investors.