Mitchell Mackersy has been involved in more than 90 commercial property syndicates throughout New Zealand over the past 20 years. We source commercial property investment opportunities for private investors, negotiate and secure suitable properties with long term leases in place that meet strict investment criteria and complete the necessary legal and commercial due diligence. From settlement, the firm provides investors with full property and investment management services through its management company (MHP) that currently manages over 90 syndicate-owned commercial properties with a combined portfolio in excess of $900m. Our property syndicates are structured to provide investors with a high yielding and tax effective investment in New Zealand’s top quality real estate, without the burdens of private ownership. See below for a selection of Completed Projects and Current Projects that Mitchell Mackersy has placed into its private investment group portfolio.
How are the property syndicates structured?
Each property is purchased by a limited liability company. The company holds legal ownership in the property and ordinarily grants a first ranking mortgage to a trading bank. Shares are issued in the company and investors hold shares in the company proportionate to the level of their investment. All directors appointed are shareholders within the company and therefore shareholders retain overall control of the company. Any major decisions affecting the property or the company will require a special resolution (requiring 75% shareholder support).
Who is able to invest?
The property investments are “private offerings”. Prior to 2014, all investors were required to be “Eligible Persons“ for the purposes of the Securities Act 1978. This typically required independent certification based on either net assets of not less than $2m or an annual income of not less than $200k per annum. In limited circumstances, investors may be exempted if they are sufficiently experienced.
The Financial Markets Conduct Act 2013 from April 2014 will replace the Securities Act 1978 (subject to a transitional period) and new rules apply to private offers. Each investor will now need to fall within one of the “exclusions” under Act.
For further details on eligibility to invest, please contact us to discuss.
What is the minimum size of investment?
Investments vary in size from project to project. Some projects provide for investments as low as $65,000.00 per parcel but the majority of investments start from $100,000.00 and can be as much as $5m per investment.
Can I invest in more than one property?
Yes you can. We have over 300 investors who are members of our private investment group. A large number of those investors have multiple investments – with some having more than 10 investments. Having shares in a number of property owning companies provides diversification across a range of different locations, building types (Industrial, office and retail) and tenants.
When will I get paid and what will I have to do?
Payments are made to investors on a monthly basis and investments are fully managed. Unless you are director, there is very little input required on an ongoing basis. All properties and investment syndicates are fully managed by Maori Hill Property, from on-site facilities management, through to preparation of annual financial statements and payment of monthly distributions to shareholders. Given our size and relationship with Banks we can arrange cost effective and appropriate funding packages for investment groups, including interest rate hedging, interest-only terms and 100% non-recourse funding to the investors.
How do I sell my investment?
All investment syndicates contain a pre-emptive rights procedure for the sale and transfer of shares. This procedure first requires the company and the shares to be valued and then offered to existing shareholders. If the pre-emptive rights process is not successful, we will facilitate the sale of your shares to our wider investment group via a secondary market.
What are the benefits of investing in a property syndicate over direct ownership?
The investment syndicates are fully managed by Maori Hill Property with low management fees, they provide a high yielding, low hassle option and we employ the best people to manage your investment.
Through our strong relationship with developers and construction firms (such as Calder Stewart) that have been developed over many years, we have access to a steady stream of brand new or near new commercial buildings through out New Zealand with National or International tenants – we create unique opportunities for our investors to own a part of large commercial building that they would otherwise not have access to.
Our scale allows us to negotiate favorable lending rates from the major trading banks and maximize investment returns to you as an investor.