Email Phone Next Scroll to move Touch to move edit Play Play Pause Volume Mute Zoom Open Close Search < Linked In Linked In X Facebook Instagram Close
website-banner

Centuria Bass NZ First Mortgage Fund No. 4

Real estate debt investment

Enquire now

Centuria Bass NZ First Mortgage Fund No. 4 is a fixed term property debt investment opportunity offering investors a forecast pre-tax return of 10% p.a.1, with investors’ funds used to refinance a land bridge loan to borrowing entities associated with Thames Pacific, a reputable New Zealand property developer, secured by a first mortgage over two Kapiti Coast  properties. Investors’ capital and the target return are forecast to be distributed when the land bridge loan is due to be repaid in April 2025.2

Quicklinks

Icons_Hand - Money
10% p.a.

forecast pre-tax return for investors1

Icons_Timeframe
12 month

investment term2

Icons_money - hands holding
$100k

minimum investment

Icons_Structure
35.8%

loan-to-value ratio

Property and location

The Secured Properties are a 1.89 ha site at Paraparaumu Beach and the 32.9 ha site at Waikanae. Both positioned for future residential developments and are supported by high demand for medium density housing, lack of supply in the region and strong population growth.4

The Kapiti Coast is one of the fastest growing regions north of Wellington with population growth expected to increase by 55% over the next 30 years. It also benefits from the recent completion of Transmission Gully, providing a key transport link and reduced commute times to the Wellington CBD.

About the borrower

The borrower is associated with Thames Pacific, a reputable New Zealand developer who has successfully completed multiple residential and mixed-use projects across both Australia and NZ including the Kapiti Coast, where the secured properties are located.

Why invest in real estate debt

Investing in real estate debt gives Wholesale Investors exposure to an asset class with capital protection which benefits from a first ranking mortgages over the secured properties. If the underlying borrowers default on their loan, the secured properties can be sold and the proceeds applied to repay Investors. A secured debt investment provides a priority position in the capital structure of the borrower, and is repaid ahead of equity.

The proposed investment involves a conservative LVR of 35.8%. If the borrower defaults on the loan and the secured properties are sold to recover the debt, the properties’ value would need to drop significantly before Investors’ capital is impacted.

Transaction summary

Facility type First mortgage land bridging facility (no construction risk)
Security properties 240 Kapiti Road, Paraparaumu Beach
99-103 Old State Highway 1, Waikanae
Raise amount Up to $7,400,000
Valuation $35.95 million (combined ‘as-is’ valuations)
Status Open to investment
LVR 35.8%
Target investor return 10% p.a. forecast pre-tax return1
Term 12 months2
Minimum investment $100,000
Tax PIE structure – maximum tax rate of 28%
Manager Centuria Bass, the highly experienced commercial real estate debt arm of ASX-listed Centuria Capital
Opening date 12 Feb 2024

About the manager

Centuria Bass

Centuria Bass is the commercial real estate lending arm of Centuria Capital Group (ABN 22 095 454 336) (ASX:CNI). Founded in 2016 in Australia, Centuria Bass has now established a reputation as a leading non-bank lender, with a track record having no losses on principal or forecast interest to investors since inception. Highlights as at 31 December 2023 include:

  • AU$1.6b of funds under management
  • Over 127 investments made at a gross LVR of 60.5%
  • Weighted average net IRR to investors of 12.8% since inception*
  • Optimised returns to investors through tactical deal selection, extensive due diligence and active loan management.

With these proven results and satisfied investors, Centuria NZ are excited to introduce Centuria Bass to New Zealand investors.

*Past performance is not indicative of future performance

Centuria NZ

Centuria NZ is part of the ASX200 listed Centuria Capital, a leading Australasian property funds manager with over $21.1 billion3 of assets under management. Centuria NZ has over 20 years’ experience, a conservative approach and strong track record in providing New Zealanders with property investments across the commercial, industrial, healthcare and agricultural property sectors. Centuria focus on providing varied investment options for its clients.

Who is a wholesale investor?

A person or entity will be a wholesale investor if they:

  1. Certify that they are an ‘eligible investor’, having sufficient investment experience to effectively assess the merits of the offer, including the risks. This must be confirmed by a financial adviser, accountant or lawyer; or
  2. Invest at least $750,000 in the offer; or
  3. Own an investment portfolio of at least $1 million or participated in investment transactions of at least $1 million in the past two years; or
  4. Controlled net assets in excess of $5 million or had turnover in excess of $5 million for the past two financial years; or
  5. Are an investment business or financial adviser or have been employed or engaged in an investment business within the last 10 years and participated to a material extent in investment decisions.

Please click here to download more information or to discuss the above please contact the selling agents.

1. Target return of 10.0% per annum net of all fees, with the return and the initial investment repaid at maturity of the Bridge Loan. The return is calculated on a pre-tax internal rate of return of return basis (IRR).
2. Expected term is approximately 12 months (391 days from the assumed allotment date of 18 March 2024), however the loan may be extended (as described in the Investment Memorandum).
3. As at 30 September 2023.
4. Waikanae property is currently zoned ‘General Rural’ and residential development is subject to obtaining Resource Consent.

 

The Investment Memorandum is not a product disclosure statement, offering document or other form of disclosure document under New Zealand law (or any other law) and may not contain all the information which would be required to be disclosed in such a document or which investors may require to make an informed investment decision.  As the offer is only being made to persons who are “wholesale investors” within the meaning of clause 3 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA), the Offer is not a regulated offer and is not an offer of financial products that requires disclosure under Part 3 of the FMCA.

You should undertake your own independent review, investigation and analysis of the offer and obtain any taxation, legal, financial or other professional advice in relation to the offer as appropriate in your circumstances. The selling agents are not providing personalised advice. Important information about the financial advice service provided by Bayleys Real Estate Limited is available at syndications.co.nz. Should you invest in the Fund commission will be payable to Bayleys Real Estate from Centuria Bass.

Nothing in this advertisement constitutes an offer to subscribe for, or an offer of securities or financial products to any person, in any country, in which it would be unlawful to do so. Terms used in this advertisement have the same meaning as defined in the Investment Memorandum, unless the context suggests otherwise.

Investors should read the Investment Memorandum which is available at www.centuria.co.nz/cbnzfm4