Property an opportunity for ‘wealthy’ investors
WEALTHY investors are being offered $50,000 shares in the ownership of an Auckland property leased to the country’s biggest steel fabrication business.
Property syndicator August Funds Management is offering 220 shares in the D&H Steel Construction property in Henderson.
The 1.98ha property is leased to D&H Steel for a 20-year initial term with two further 10-year rights of renewal. The lease is returning a net rental of $1,365,000 plus GST per year, with rental reviews linked to the consumer price index.
The building, valued at $18.2 million, was built for D&H Steel in 2009, and has 12,131 square metres of high-stud warehousing, production plant space, office amenities, goods storage and communal staff areas.
Augusta managing director Mark Francis said shares of the property’s freehold title were available only to investors who were ‘‘certified as wealthy’’ and those investing more than $500,000. He forecast an annual return of 8.5 per cent.
Augusta owns or manages more than $340m of commercial and industrial property including the Bendon, Repco and Downer EDI headquarters in South Auckland, the Farmers store in Hastings, Countdown supermarkets in Tauranga, West Auckland, and Huntly, ENZA’s coolstore plant in Hastings and Carter Holt Harvey’s paper bag manufacturing plant in South Auckland.
The proportionate ownership scheme is being marketed by Bayleys real estate, with applications closing on August 9.