New Zealand Real Estate Investment Trust
Fixed Income Fund A Units ("Unit Class A")
6% p.a. projected pre-tax cash distribution, payable quarterly
Our aim is simple – to grow a portfolio of childcare properties that have a diversified group of premium tenants and with growth potential.
NZREIT is an open-ended fund. As such, our intention is to continue to add to our portfolio of childcare properties, thereby diversifying investment risk across multiple properties and tenants. We believe that this is a conservative investment structure enabling us to better manage the requirements of our tenants and provide our unit holders with superior security.
Our strategy is to provide the closest alternative to direct property ownership as possible, targeting regular quarterly distributions and the potential for capital growth. Being a PIE fund, Unit Class A investors receive the same income, tax deductions and capital gains as if they owned the properties direct, including depreciation deductions which reduces your tax.
NZREIT intends to grow by acquiring further childcare properties. The founders, alongside other existing investors, will be offered the first opportunity to reinvest on a pari passu basis.
Investment Key Features:
6% * p.a. projected pre-tax cash distribution, payable quarterly
- Newly constructed childcare center located in desirable Beach Haven
- Leased to the biggest childcare operator in New Zealand, Best Start
- Lease Term: 15 years x 10 years x 10 years
- Purchase price $6,145,455 (Indicative only, based on the yield of 5.5%, the final price will be confirmed by the independent valuation report obtained in early January 2022)
- Equity raise $3,559,860
- PIE fund structure
- Low LVR of 45%
- 1,926 sqm freehold site
- 766 sqm standalone building
- Returning $338,000 p.a. + outgoings + GST (after four-month ramp-up incentive)
- Projected handover date 1 February 2022
UNDERLYING FUND (UNIT CLASS A) ASSETS
5 William Pickering Drive, Rosedale
- Located on a main arterial road with 55m frontage, this high-profile property is strategically positioned in the heart of the Albany business district and less than 1km to motorway interchanges.
- Anchor tenant: Just Kidz Albany Limited
- Total Annual Rent: NZD $421,634+GST
- Settlement: 30 September 2019
4019-4021 Great North Road, Glen Eden
- This property is one of the newest childcare centres in Glen Eden.
- Tenant: Happy Learning Limited
- Total Annual Rent: NZD $346,320+GST
- Settlement: 31 March 2021
To be acquired (Current Offer)
199-203 Beach Haven Road, Beach Haven
- The childcare centre is expected to be completed in December 2021 and expected to open in March 2022.
- Tenant: Best Start Education Limited
- Total Annual Rent: NZD $338,000+GST
- To be Settled: 31 March 2022
For more information on this property, download the brochure here. Contact us