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  1. #1
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    Default Supermarket investment via bayleys

    Anyone looked at this. Countdown 20 year lease , Tauranga,countdown, 9% returns estimated. min invest $50,000 . Debt maybe re 30%?. WWW.supermarketinvestment.co.nz

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    Interesting. Probing it at the mo. Be interested to hear other peoples views

  3. #3
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    I Would not touch with a Barge Pole read the fine print very carefully
    Last edited by POSSUM THE CAT; 15-03-2012 at 01:55 PM. Reason: correct grammar
    Possum The Cat

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    My understanding is most of these syndication deals are just set up to earn fees for the managers.

    This is how DNZ started out wasn't it. A collection of single building syndication that weren't doing well that had to be combined, and management bought out to make it a good investment.

    I was stick to the listed property investments if you want to get into commercial/industrial/retail but cant afford to go it alone. Very transperent, highly liquid. Most are PIE's I think so also tax efficient.
    Free delivery worldwide with Book Depository http://www.bookdepository.co.uk

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    Quote Originally Posted by POSSUM THE CAT View Post
    I Would not touch with a Barge Pole read the fine print very carefully
    Spent the morning trolling through it all then went back again with open comb in afternoon. Theres some interesting lines in the fine print that make you go 'huh?' and 'hmmmm' and scratch your chin

  6. #6
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    Mr Monkey did you come to thesame conclusion that I did that the only one guaranteed to make money from these syndicates is Bayleys
    Possum The Cat

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    Quote Originally Posted by CJ View Post
    My understanding is most of these syndication deals are just set up to earn fees for the managers.

    This is how DNZ started out wasn't it. A collection of single building syndication that weren't doing well that had to be combined, and management bought out to make it a good investment.

    I was stick to the listed property investments if you want to get into commercial/industrial/retail but cant afford to go it alone. Very transperent, highly liquid. Most are PIE's I think so also tax efficient.
    You are absolutely right if you refer to the syndicate properties promoted and managed by SPI Capital (www.nzspi.com). Majority of its syndicates have performed poorly. Two have already been sold with a big loss.
    Another one (Hunua Syndicate) would be voted by shareholders for its fate. It stopped paying interest about 2 years ago.

    It is easy to get into property syndicate, but difficult to exit. In Hunua's case it is not possible to exit.

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    Quote Originally Posted by POSSUM THE CAT View Post
    Mr Monkey did you come to thesame conclusion that I did that the only one guaranteed to make money from these syndicates is Bayleys
    Yes.


    PS I get nervous when I see 'projected pre-tax return paid monthly' bandied about with an asterisks in front. Its like saying, yeah...you probably won't get this much but theres a sweetener at the end of all you blind mum and dad investors, its paid monthly so its like free money coming at you every month, from us! See its easy just give us 50K NOW.

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    After years of receiving leaflets afer an enquiry in 2004 I finally bought a 100K share in the Lincoln Rd Mitre10 building last November. 9.2% return. With Oyster. They've been paying me $766 per month since then. Have to say its a heck of a lot easier than chasing tenants around and cleaning up after them after you've kicked them out. Oyster do regular projects and I'll look at getting involved with other ones based on this experience sofar.

    The fact that they're clipping the ticket on the way doesn't bother me. You can't really expect them to do it for free, and there's nothing wrong with people naking a dollar.

  10. #10
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    cloggs what happens when the lease runs out. They are trying to get planning permission for an even bigger one in the same area.
    Possum The Cat

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    Yeah "Bias concealedin the fake vinyl white cloak of truth"

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    This top grade newish building leased to telecom also sounds great .$50,000 min investment , great location rent reviews etc etc., 8% yield PREDICTED. Other than the liquidity issues when selling , whats hidden in small print?

    Augusta opens door to Telecom's home

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    Quote Originally Posted by Joshuatree View Post
    This top grade newish building leased to telecom also sounds great .$50,000 min investment , great location rent reviews etc etc., 8% yield PREDICTED. Other than the liquidity issues when selling , whats hidden in small print?

    Augusta opens door to Telecom's home
    Is this the same Joshua who won the piefunds comp? Hell, you can do a lot better than 8%.

    How long will it be 8%? Not long if interest rates keep on rising.
    No advice here. Just banter. DYOR

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    I need more income in my port. Appreciate an opinion from anyone who has read the article prospectus. The liquidity is a big issue. The five star green rated newish building,location and client are pluses as is 3% fixed annual rent increases for first 10 years. Syndication scheme has no fixed term and would be wound up if a min of 75% shareholders voted for it. Comparing it to what else pays 8% at the mo.? Don't personally like these structures and the devil is in the detail.

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    Sorry I haven't got time to read the full prospectus mate but one thing that leaps out at me, (apart from the fact that its managed by Augusta), is the high gearing (47% is high for commercial property) and the fact that the initial debt facility is only for three years. They will have done this to get the cheapest interest rate and put the maximum gloss on the deal. What will interest rates be in 3 years and how will that affect you net return in the future ? That and the way Augusta manage this are your two key medium term risks from a very brief look. Long term its not exactly a vanilla style commercial building so what happens if Telecom vacate after their 10 year lease and they can't re-tenant the building ? Will that unusual styled building be in demand in 10 years ?

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