"We will be convening public meetings for two weeks from March 19 to further explain the offer, which comprises 457 parcels of 50,000 shares," he says. "The balance of the purchase price or 47.5 per cent will be funded by a bank loan."
Tuffin says the offer comprises a projected pre-tax 7.8 per cent cash return paid monthly. "The property is in a prime location, on a main thoroughfare of one of New Zealand's fastest-growing cities. It's just a few minutes' walk to the city centre.
"However, potential for income generation is normally the biggest consideration for investors."
Tuffin says that the building has 8077sq m of net lettable area. It is the home for six tenants, including IRD — on a nine-year-lease from February 2017 — and Tauranga City Council, which has taken a seven-year-lease from February 2018. Together these two tenants occupy 88 per cent of the space available.
Other tenants include Generation Homes (Level 1), PGG Wrightson Real Estate, a national physio practice, a sports energy and sustenance company and a cafe. The building is well serviced with 103 carparks, situated in the basement and on ground level.
The property has a mid-to-long term lease profile, with a 7.22 year weighted lease term and the issuer (Cameron Road Property Investment) intends to register as a Portfolio Investment Entity (PIE).
Tuffin expects significant interest at the meetings: North Shore and Alexandra Park on March 19; Christchurch March 28; Hamilton and Tauranga March 22; New Plymouth March 23; Kapiti and Wellington March 26; Blenheim and Nelson March 27 and Whangarei March 21..
"Indications of interest will not be taken as an obligation, or a commitment, to acquire shares. These meetings are for information only. No money is currently being sought and shares cannot be applied for or acquired. But if the offer is made, it will be in accordance with the Financial Markets Conduct Act, 2013," says Tuffin.
