WARNING 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 Schedule 1, 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.
Note: We urge you to carefully review the information Memorandum and additional attachments (if applicable) before lodging an application. In the event that there are any material changes to the Information Memorandum communications will be added to the attachments for review.
This is an offer to wholesale investors of Units in Alderson Drive Limited Partnership. Your money will be pooled with other investors to purchase the Alderson Drive property, located at 48 Alderson Drive, Palmerston North.
The property is to be purchased for $9.4 million and is conditional on finance and due diligence. The property comprises a temperature-controlled distribution facility and associated offices.
Freshmax NZ Ltd will lease the property through to 30 June 2025, with two further three-year rights of renewal. The lease is net of outgoings with a current rental payment that delivers a 6.6% cap rate, with biannual market rent reviews - the next being June 2021.
The Partnership will invest in the Alderson Drive property located in Palmerston North using a combination of $6.7 million of contributed capital to be raised in this Offer and $3.3 million of bank debt. The property is to be purchased at the price of $9.4 million and the residual capital is required to cover establishment costs. This provides the Partnership with a loan to value ratio (LVR) of 35%.
The Offeror reserves the right to use up to a further $0.6 million of short-term bank debt and declare the sale and purchase agreement unconditional once it has received applications for $6.1 million of contributed capital. The Offeror will continue to raise the balance of contributed capital to reach the $6.7 million it is seeking, but in the event that the Offeror raises less than this, any shortfall will be funded using additional bank debt. If only the minimum amount of capital is raised, the LVR would increase to 41%. The additional debt could require some principal repayments, which would lower cash returns depending on the key banking terms that are able to be negotiated.
The Offeror reserves the right to accept or decline over-subscriptions and to determine which applications are accepted. Any oversubscriptions will be used to reduce debt. The Offeror is also entitled to scale, order, or reject any application as it sees fit.
Under the sale and purchase agreement the vendor is subdividing the property out of a larger title.
Settlement will take place 20 working days after the issue of the new title. The earliest this is expected to occur is December 2020.
As a limited partner the maximum amount payable is $10,000/Unit and no other payments are required to be made other than those specifically agreed to. Any future expansion to the property will provide further opportunity to invest via a rights issue. This will be subject to a special resolution and optional to provide additional capital. There is no compulsion for further investment by Partners.
The Offer is for 670 Units in Alderson Drive LP at an issue price of $10,000/Unit. The minimum investment is 5 Units ($50,000) and thereafter the size of an investment can be increased in multiples of one Unit thereafter.
|48 Alderson Drive||Milson, Palmerston North||48 Alderson Drive, Milson, Palmerston North 4414|