PRESTONS ROAD LP
Bespoke large format retail opportunity, for wholesale investors only
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The opportunity
To acquire a share of a prime large format retail property in Christchurch upon its completion, at a purchase price below a current as-if-complete market valuation.
Objective
Deliver investors a total pre-tax compounded annual rate of return of at least 12% per annum on capital contributions over the Limited Partnership’s (LP) life. Strategy
Prior to development, secure Mitre 10 as a tenant at the property, and commit to the acquisition of 60% of the property (Property Share) and provision of development funding;
During development, advance funding over time to generate interest income;
At development completion, acquire the Property Share with the lease to Mitre 10 commenced, at the effective cost of development; and
Dispose of the Property Share over a three year period from initial capital commitment.
20 year
initial lease term
12%+ p.a.*
target gross 3 year internal rate of return
6% p.a.*
target gross cash return, paid quarterly
Investment highlights
Secured fully net lease with national home improvement brand Mitre 10;
Structured acquisition and funding terms to generate value while protecting capital;
Development from a renowned, expert local builder, Tuatara
Structures under a fixed-price contract; and
Attractive long-term location, set to serve a growing catchment with supportive demographics.
*Indicative targets only, are subject to change, and based on certain assumptions. There is no guarantee of future performance.
A commercial property investment with an exceptional tenant
With over 80 independently owned stores, Mitre 10 is one of New Zealand’s most recognised and trusted brands. Their proven track record in the home improvement sector makes them an ideal tenant.
Delivered
by a trusted developer and builder
To be developed by Tuatara Structures, this project is backed by an industry leader with a proven track record in delivering high-quality commercial developments on time and within budget.
Other key information
Target size
Seeking up to $14.0 million of equity commitments, with a minimum of $100,000 per investor. Up to $6.0 million of equity has been conditionally committed to the LP.
Investment risks
Primary risks associated with development execution, market value, and saleability of the property over time. Other risks will apply.
Regular distributions
Targeted gross distributions of 6.00% per annum on capital called, paid quarterly. On disposal, a final distribution will be paid from any residual surplus after performance fees (if any).
Liquidity
A PMG fund will co-invest alongside the LP to acquire the remaining 40% of the property, and intends to own the entire property long term. Intent is to provide investor liquidity within three years of equity commitment through sale via an embedded option mechanism to the PMG fund.
Target
dates
November 2024
Capital commitment date and first capital call.
March 2025
First quarterly distribution declared.
December 2025
Development completion and acquisition of the Property Share.
Fees and costs
Key fees to be paid to PMG (as manager) by the LP include contribution, establishment, disposal and performance fees. Other fees and third-party expenses will apply.
Further information related to this opportunity will be made available only to wholesale investors in an upcoming Information Memorandum.
021 193 4550 matt.mchardy@pmgfunds.co.nz
027 700 9970 ben.cant@pmgfunds.co.nz
027 700 6979
rory.diver@pmgfunds.co.nz