New property fund offers Kiwis opportunity for commercial property investment
/ Augusta News
stuff.co.nz | Feb 22.02.20
In this time of low bank deposit rates, the demand for investments with sustainable higher returns continues to increase.
One of New Zealand's largest property fund managers, Augusta Funds Management, is looking to meet that demand launching into 2020 with a new property fund that increases Kiwis accessibility to commercial property investment.
Augusta Property Fund opened for investment last week, with investment available in multiples of $1000 (minimum investment $10,000) and a forecast pre-tax cash return of 5.75 per cent* per annum, paid to investors monthly, with the potential for longer term capital growth and enhancement.
The fund has been established with the intention of providing investors with exposure to a variety of property investments within the one investment vehicle.
Augusta's managing director Mark Francis, who founded the company in 2001, says "The fund will initially comprise two directly owned assets, the well located large-format retail hub Albany Lifestyle Centre in Auckland and one of New Zealand's largest private health care complexes, Anglesea Medical Centre in Hamilton's CBD. There are 40 well established tenancies across both these complexes which provide exposure to large format retail, office and medical sectors and the stable income streams that we know attract our investors."
Augusta's focus on their investors' needs has seen them grow to now manage over $2 billion of commercial real estate across New Zealand and Australia on behalf of over 4000 investors.
Francis says "We're conservative in our approach with a focus on quality assets and long term sustainability of returns. We understand the importance of cashflow to our investors and receiving the return into their bank account each month, therefore we make our distributions monthly – unlike listed property trusts which generally make theirs quarterly"
New Zealand's largest full-service real estate agency, Bayleys Real Estate, which remains family owned, shares the same customer-centric values. The key management from Augusta and Bayleys have been transacting property together for over 20 years with Bayleys having always acted as Augusta's selling agent for their property investment offerings.
Bayleys' head of syndication and investment products, Mike Houlker, says that the market for these types of investments has evolved significantly over the last ten years. "As well as appealing to 'mum and dad' investors or those dipping their toes into the commercial property market for the first time, a much larger proportion of investors are now high net worth individuals, or family trusts located all across New Zealand."
"Some investors are securing upwards of $1 million worth of units in an individual offer."
Bayleys syndicated investments manager Samara Phillips who is also involved in the marketing of Augusta Property Fund with Mike Houlker, Sarah Prebble and Shirley Leung says that one of potential investors most frequently asked questions is around liquidity.
"Augusta operates a secondary market facility which matches the buyers and sellers of units. The liquidity of a unit is very much related to the performance of the underlying assets. Since 2012 Augusta Funds Management has facilitated secondary sale transactions with a total sales value of over $32 million, many trading above their original purchase price."
For more information on Augusta's latest investment opportunity including Augusta Property Fund's Product Disclosure Statement, a video outlining the investment opportunity, and the details of presentations being held all over New Zealand visit www.augustapropertyfund.co.nz or contact Mike Houlker, Samara Phillips, Sarah Prebble or Shirley Leung at Bayleys on 0800 BAYLEYS (229539).
*Based on $1 unit price. Details on how the forecast pre-tax cash return is calculated and the risks associated with this investment can be found in the Product Disclosure Statement.