The Christchurch Fund
Commercial Property
Register InterestThe 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.
Mainland Capital is pleased to launch The Christchurch Fund. The Fund provides investors with the opportunity to invest in the growth of one of New Zealand’s strongest regional economies, in its most modern and vibrant city. The Fund gives access to a prime $109 million Christchurch CBD portfolio, with strong tenant covenants and long-term growth drivers.
Investment highlights include:
- 6.2%* Income Return and 9.0%** Total Return.
- Eight high-quality assets located in the heart of the CBD, valued at $109m.
- 1.2 hectares of land, including c.6,000m² of future development potential.
- 98% occupancy across 44 tenants in professional services, health, retail, and hospitality.
- A diversified rent review profile driving rental growth.
- Acquisition pricing and valuations below replacement cost.
The Fund has now contracted off market to acquire 181 High Street, 246 and 255 St Asaph Street in central Christchurch, collectively referred to as the Little High Buildings (LHB) and comprising a well-established mix of hospitality, retail and office. Located on the high-profile corner of Tuam and High Streets, LHB is situated close to major civic infrastructure, including Te Pae Convention Centre, the Parakiore Recreation and Sports Centre and the soon to be completed One NZ Stadium.
Mainland is seeking equity commitments from wholesale investors and close business associates within the meaning of Schedule 1 of the Financial Markets Conduct Act 2013 of up to $34.2 million (with the ability to accept a small amount of oversubscriptions) to fund the acquisition (the Offer). The Fund is forecasting a 2-year average income distribution of 6.2%* p.a. net of all costs and fees, pre-tax and is targeting a Total Return of 9.0%** p.a. for the initial 5-year period following the acquisition of LHB.
For more information, register your interest below.
* Returns are subject to a number of risks and uncertainties and actual results and events could differ materially from those anticipated. Past performance is not necessarily a guide to future performance.
** Total Return is defined as income distributions and capital growth and is based on an issue price of $1.18 per unit. The income element is taxable in line with an investor’s portfolio investor rate (PIR).
