Bayleys Real Estate has set up a company to help medium-sized investors frustrated in their attempts to buy good-quality property.
Investment Property Titles (IPT), operating from Bayleys' Auckland head office, will find and market substantial commercial and industrial properties for investors wanting to spend $100,000 or more, but who do nothave millions to outlay.
Through a proportionate ownership scheme they will be able to buy a freehold title interest in a prime investment property offering long leases to reputable tenants.
Bayleys has opened its first IPT offering, an 8037sq m warehouse, factory and office complex on a 1.3ha site in Portage Rd in the Auckland suburb of New Lynn.
It has a 12-year lease to Tyco New Zealand that started last September.
Tyco owns brands such as Wormald, Armourguard and Climatech, with annual sales of more than $180 million.
The lease, which incorporates automatic three-year CPI rental increases, is guaranteed by Tyco International.
A statement prepared for the investment shows a forecast cash return of 11.77 per cent a year. Investors will be paid monthly.
The forecast return does not include property management and accounting expenses. Bayleys Property Management will manage the building.
IPT director Jeff Hurt said substantial competition in the lower-priced end of the market meant investors had little chance of buying a strongly tenanted, quality investment property in growth locations, other than at a very low yield.
