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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
10% p.a.
forecast pre-tax return for investors1
12 month
investment term2
$100k
minimum investment
35.8%
Loan-to-value ratio
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.
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.
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.
| 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 |
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:
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.
A person or entity will be a wholesale investor if they:
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
You are now leaving Centuria New Zealand
and entering Centuria Australia.