Quarry Capital Limited (as the offeror, promoter, and manager) offers certified wholesale investors an opportunity to purchase limited partnership interests ('Interests') in a new limited partnership, Washdyke Limited Partnership (the ‘LP).
The LP intends to purchase a substantial industrial precinct including seven buildings across three separate titles at Sheffield Street, Washdyke, Timaru.
There are six established tenancies in place, with a Weighted Average Lease Term (W.A.L.T) of 7 years from the expected settlement date (30 November).
Funding for the purchase, including acquisition and equity raising costs, will be by way of investor capital only ($11.4m).
The Investment Opportunity
This offer is only available to investors who qualify as wholesale investors under the relevant exclusion provisions of Schedule 1 of the Financial Markets Conduct Act 2013
1,140 new Partnership Interests of $10,000 each will be issued with a minimum investment of $50,000 (five interests), and then in multiples of $10,000 thereafter.
The Manager will have the discretion to issue additional interests over and above the 1,140 if required.
A proportion of the interests will be underwritten.
Investors will be responsible for paying their own tax.
Situated off the northern side of Sheffield Street in Washdyke. Sheffield Street is in an industrial cul-de-sac leading off the eastern side of Meadows Road. Washdyke is the principal industrial suburb of Timaru located on the northern periphery, either side of State Highway 1 and adjacent to the South Island Main Trunk Railway
Washdyke has been developed over the last 30 years and supports a wide range of industrial activities with the emphasis on the transport, logistics and rural servicing sectors. Located to the western side of the driveway entrance to the properties is the substantial Hilton Haulage headquarters property. Located nearby to the west is the substantial DB Breweries manufacturing plant and located on the opposite side of Sheffield Street are the Juice Products, Polarcold and Bluebird plants. The McCain’s coolstore complex is also located nearby.
The property is extremely well-located to principal road and rail arterials. Nearby is State Highway 1 and also the South Island Main Trunk Railway
The LP leases will be spread across three titles all zoned Industrial H Zone (Heavy Industrial) following the subdivision / boundary adjustment of an existing lot which has recently been consented.
The seven properties include 52, 54, 68, 68a, 70, 70a and 72 Sheffield. Street, Washdyke, Timaru and make up approximately 6.85ha in total land area.
The buildings have all been constructed since 2002 and range in size from 300m2 to 2,232m2.
The tenants are all proud local businesses supporting Canterbury’s logistics, agriculture and construction sectors.
The LP is a managed investment scheme for the purposes of the Financial Markets Conduct Act 2013 (‘FMC Act’). As the LP is only open to wholesale investors (as that term is defined in the FMC Act) and is therefore not a regulated offer, the LP is not required to be registered under the FMC Act.
The LP has no fixed term. The LP and/or an individual Subscriber’s Interests in the LP may be terminated in various circumstances. These are provided for in Limited Partnership Agreement (‘LPA’).
The parties to the LPA are the Manager (Quarry Capital Limited), the General Partner (WGP Nominees Limited (yet to be formed)) and the Limited Partners (the investors).