Tweed Property Scheme

Invest in a multi-property syndicate featuring two substantial properties strategically located in Dunedin and Invercargill.

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Property type Industrial Property
Property value $14m
Pre-tax cash distributions 7.1%
Portfolio LVR
(Loan to Value Ratio)
47%
WALT
(Weighted Average Lease Term)
8.5 years
Number of interests 766
Minimum investment required $50,000
The Key Features
  • The Scheme (through its associated company Picador Nominees Limited) has entered into a conditional contract to purchase the freehold ownership of 90 Tweed Street, West Invercargill for $4,800,000.The contract is conditional on purchaser due diligence (due for confirmation by 30 June 2022*)
  • The Crown (acting through the Ministry of Primary Industries ('MPI')) have signed a conditional 12-year lease to commence 10 days following practical completion of an already designed redevelopment plan.
  • Calder Stewart has been engaged to undertake the redevelopment works, which is anticipated to be completed during the first quarter of 2023, at an estimated cost to the Scheme of $3,000,000 (cost is not fixed).
  • The cost of the redevelopment (with the exception of base build items estimated at the cost of $400,000) is recoverable over the initial 12-year lease term in the form of fitout rental payable by the tenant from the commencement date. This is in addition to the building rent.
  • The vendors have agreed to pay to the Scheme $528,000 as a notional rent to cover the costs during the redevelopment period (estimated to be 6 months) and rent-free period (first 3 months of the MPI lease).
  • Funding for the property and redevelopment, including acquisition and equity raising costs, will be by way of investor capital ($4.3m) and a bank loan ($4.0m), bringing the Scheme LVR to 47%.
  • Settlement of the property is expected to occur on 17 July 2022*.
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
  • Up to 430 new Proportionate Interests of $10,000 each will be issued with a minimum investment of $50,000 (five interests) for new Scheme investors, and then in multiples of $10,000 thereafter.
  • Investor subscriptions to be received prior to confirmation on 30 June 2022. This date is indicative only and may change as the Manager reserves the right to close the offer at any time prior to the closing date or to extend the closing date.
  • The new interests will rank equally with restructured interests.
  • This is not a PIE investment. Investors will be individually responsible for paying their own tax.
The Properties

90 Tweed Street, West Invercargill, comprises a 1,575m2 commercial building completed in 2007 on 2,458 m2 of land zoned as Business 3 / Industrial 2. The site is strategically and centrally located, covering two road frontages by the busy Clyde Street roundabout. The building is 100% NBS.

The property was previously tenanted by Mico and subsequently by the Electoral Commission on a short-term basis.

MPI has signed a conditional 12-year initial term lease with 2 rights of renewal, following a satisfactory fitout/redevelopment. The property will serve as the primary Southland base for the Ministry's activities. Fitout plans are well advanced, with Stapleton Elliot completing the architectural drawings and Calder Stewart engaged as the head contractor.

It is anticipated that the redevelopment project will be completed in the first quarter of 2023. Works are set to start immediately following settlement.

9 Chadwick Street comprises a substantial industrial property located on 8,639m2 of land in Fairfield, Dunedin. The buildings include 5,862m2 of factory, warehouse and office space along with yards and car park.

Internal layout provides several manufacturing areas, including a first floor area, with part converted to offices, a new concrete panel high stud distribution warehouse at the rear of the site, engineers workshop plus managerial offices and amenities. The previous vendor (current tenant) completed extensions to the factory and full building upgrade works along with further development of car parking and site access in 2015. The buildings are 100% NBS.

Properties in the established industrial area of Fairfield are tightly held and 9 Chadwick Street enjoys an excellent position between Chadwick Street and Main Road, with access from both. It is in close proximity to ‘Cleveland Close’, a new industrial development, and is surrounded by well-known and established tenants, including Fulton Hogan, Otago Road Services & Timber Direct.

The property is currently tenanted by Tuapeka Gold Print, who have recently acquired a nearby 8ha site, which it intends to develop into a new 15,000m2 factory and warehouse at some stage within the next five years as they continue to grow. Due to the shortage of mid-sized industrial warehousing in favourable Dunedin locations, Quarry sees significant potential to re-lease the newer warehouse (over 50% of total building area) and redevelop the older portion of the property should TGP not exercise their renewal.

The Structure
  • The Scheme is a managed investment scheme for the purposes of the Financial Markets Conduct Act 2013 ('FMC Act'). As the Scheme is only open to wholesale investors (as that term is defined in the FMC Act) and is therefore not a regulated offer, the Scheme is not required to be registered under the FMC Act.
  • The Scheme has no fixed term. The Scheme and/or an individual Subscriber's Interests in the Scheme may be terminated in various circumstances. These are provided for in the Restated and Amended Ownership and Management Deed (the ‘OMD’)
  • The parties to the OMD are the Manager (Quarry Capital Limited), the Nominee (TGP Nominees Limited) and the Subscribers (the investors).

Find out more & register your interest

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Warning New Zealand 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 because there is an exclusion for offers 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. 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.

This is not an offer to the public This offer is only available to investors certified as ‘wholesale investors’ within the meaning of clauses 3(2), 3(3)(a) and 3(3)(b) of Schedule 1 of the Financial Markets Conduct Act 2013.