6.5%p.a. Forecast Pre-Tax Return in the Industrial Property Sector
The age old question of how to make the most of your investment dollar is especially significant in the current economic climate. It’s no secret that we Kiwis love owning houses but there are alternative ways of including property within your investment portfolio – for as little as $10,000 with forecast 6.5%* p.a. pre-tax returns.
The industrial property sector includes the likes of warehousing and manufacturing facilities and has consistently outperformed other commercial property sectors with the highest total returns over the past five years. One of New Zealand’s leading and largest property funds managers, Augusta Funds Management Limited established the limited liability company Augusta Industrial Fund Limited (Augusta Industrial) in April last year as an open ended unlisted property fund, specifically to provide investors access to this sector.
“There’s strong demand with the original $75 million share offer closing oversubscribed in June last year with many investors missing out,” says Mark Francis, Augusta’s managing director and a director of Augusta Industrial.
“Originally Augusta Industrial was comprised of four assets and within a short time period, their value has grown to $121.64 million from a total purchase price of $114.074 million. A further five assets have now been secured meaning the fund has re-opened for investment.”
Francis says Augusta Industrial is all about diversification with 47 tenants across nine properties and three cities. “Investors’ capital and income streams, should have a lower risk profile in comparison to the normal fluctuations that single asset investments can be exposed to.”
“The shortage of good quality industrial opportunities should ensure industrial property values remain well underpinned,” says Francis.
The offering is being marketed by Mike Houlker, Samara Phillips and Sarah Prebble of Bayleys’ Syndication and Investment Products division. It closes on March 22, 2019.
“A key objective is to deliver a sustainable and stable income return plus the potential for capital growth,” says Houlker. “Unlike many property funds and other investments, Augusta Industrial makes distributions on a monthly basis which is particularly helpful for smaller investors who have recurring monthly outgoings.”
Presentations are being held all over New Zealand. It’s a great opportunity to learn more about both this investment opportunity and Augusta, says Houlker.
Established in 2003, Augusta Funds Management specialises in shared ownership structures with approximately $1.8 billion of property assets under management across New Zealand and in Australia on behalf of over 3,500 investors.
It will provide asset management, development and project management, treasury and financial management and legal and compliance services for Augusta Industrial. Bayleys Property Services will provide day-to-day property and facilities management services.
Augusta Industrial is being structured as a Portfolio Investment Entity (PIE) with tax deducted at an investor’s prescribed tax rate up to a maximum of 28 per cent.
For more information, visit the website www.augustaindustrialfund.co.nz or contact Bayleys directly (0800 BAYLEYS).
Augusta Industrial Fund Limited is the issuer of the shares. The offer of shares is made on the terms outlined in the Product Disclosure Statement for Augusta Industrial Fund Limited. Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser, which takes into account their personal circumstances before making an investment decision. The selling agents are not providing personalised advice. Neither Augusta Industrial Fund Limited nor any other person guarantees the shares being offered, nor warrants or guarantees the future performance of Augusta Industrial, the shares or any return on the investment.
*Details on how the forecast pre-tax cash return is calculated and the risks associated with this investment can be found in the Product Disclosure Statement. The actual returns could differ from the forecast returns.