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  1. #1
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    Default Proportional titles/property syndication.

    Anyone had any dealings with any Mitchell Mackersy property syndicates?
    Mitchell Mackersy are solicitors and operate Maori hill properties.

    https://mhpl.co.nz/properties/

    Their latest offering looks very good. $200,000 per interest. Just wondering if anyone has had dealings with them.

    Brief details attached.
    Last edited by fungus pudding; 05-03-2019 at 06:40 PM.

  2. #2
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    Hi Fungus,

    I realise this is a really old post but I was just curious did you end up doing anything with Mackersy? As I'm in the position you were in 2 years ago I am considering investing in one of their properties in Auckland https://www.mackersyproperty.co.nz/p...g-auckland-cbd

    If you (or anyone else reading this) did have any dealings be interested in your opinion of them to deal with and also any thoughts on the issue of liquidity wjhen it comes time to exit the investment (although I would be buying to hold for many many years)


    Thanks

  3. #3
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    Hi .Been seeing heaps of investments like this being advertised for prime industrial, office , retails and Hort opps(My Farm). Carrot is re 5 -6% yields from day one ESTIMATED FOR FIRST YEAR!.. Always comes back to liquidity which puts me right off. But should it ? Matching a keen seller to a willing buyer without much discount could be fraught with difficulty in ones own timeframe is my concern..Listed Prop companies have liquidity with a current consequent much lower yield.
    Last edited by Joshuatree; 08-01-2021 at 04:29 PM.

  4. #4
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    Quote Originally Posted by lawson View Post
    Hi Fungus,

    I realise this is a really old post but I was just curious did you end up doing anything with Mackersy? As I'm in the position you were in 2 years ago I am considering investing in one of their properties in Auckland https://www.mackersyproperty.co.nz/p...g-auckland-cbd

    If you (or anyone else reading this) did have any dealings be interested in your opinion of them to deal with and also any thoughts on the issue of liquidity wjhen it comes time to exit the investment (although I would be buying to hold for many many years)


    Thanks
    Yes. I have bought into three of their syndicates, and they seem ok. I will buy more, although one, Entex in Ch-ch, has problems. Main tenant is a movie theatre and Covid had them shut down for a while - other tenants in that complex are all restaurants and cafes, so that one will go through a hard time.
    For me, I'm not a share buyer (don't know the first thing about shares in general) although have a fair pile in LPTs. I understand Real Estate and nothing else. I can't be bothered with owning more buildings, so these are good things for me. Also good for estate planning.
    That's me, but they are certainly not for everyone. they probably aren't very liquid, but that suits me down to the ground as they eventually will be bequeathed and I'd rather the beneficiaries can't splash out on new cars etc.
    When I say I know nothing about shares, I have never bought anything with selling in mind - so every move I make is to increase my income.
    'keep stacking up income' is my philosophy.
    That's why I say - not for everybody.
    Another point about Mackersy properties as opposed to other syndicates I am in, is Mackersy offer an option which leaves them sorting out your tax and these days I can't be bothered with paper work. (LPTs are all PIES so that makes them simple too - not to mention the massive tax advantage, particularly under Labour's new 39% bracket)
    Hope that's some help.
    Last edited by fungus pudding; 08-01-2021 at 05:13 PM.

  5. #5
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    Thanks very much Funguspudding and Joshuatree.

    I have no experience in this space so always worry that I don't know what I don't know - when investing in a different type of investment product and asset class.

    I'm still trying to decide what is best I suppose it really depends on age and circumstances to a degree. I will probably divert money that would normally be in cash or bonds into a couple of these so I'm comfortable with them being very very long term holds and also if inflation does make a real appearance then rents should to some extent keep pace with some annual rent increases being circa 3% or linked to cpi. So I am leaning towards going down this path as you say for income.

    By the way, I hope things work themselves out for you FP with Entex now that everything is open again it'll hopefully just be a blip.

    Cheers
    Last edited by lawson; 09-01-2021 at 02:11 PM.

  6. #6
    CROESUS U.T.
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    Thank you Fungus.
    Could you explain how the ownership is structured e.g. company or limited partnership, etc and what protection owners have in the event that they become dissatisfied with the management of the properties.

    Reason for asking is that we have been going through a protracted problem with a forestry investment and these were the two issues that prevented a satisfactory resolution. Hence the desire to avoid anything similar.

  7. #7
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    Quote Originally Posted by CROESUS U.T. View Post
    Thank you Fungus.
    Could you explain how the ownership is structured e.g. company or limited partnership, etc and what protection owners have in the event that they become dissatisfied with the management of the properties.

    Reason for asking is that we have been going through a protracted problem with a forestry investment and these were the two issues that prevented a satisfactory resolution. Hence the desire to avoid anything similar.
    If you provide email address (Pvt. mssge me if you like) I will forward a couple of brochures that will give you an idea of their structure.* There are other syndicators, e.g. Bayleys, and Augusta - can't recall names of others. I have also attached memorandum of AA building currently being syndicated by Mackersy. I suggest you phone them as 'a potential investor' with any specific questions. I have spoken to woman called Omea Willows who was most helpful. Also Mike Houlker at Augusta is helpful. I think Bayleys have a road-show presentation in February promoting their latest offering. Sarah.Prebble@bayleys.co.nz will be only too happy to provide details.
    I am not sure how that all relates to your current situation, but best of luck.

    * The brochures are too big too attach to this forum. Alternatively phone Omea Willows or anyone at Macersy properties - contact numbers at bottom of this attachment - https://www.mackersyproperty.co.nz/contact - and they will send you a bit of info.

  8. #8
    CROESUS U.T.
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    Quote Originally Posted by fungus pudding View Post
    If you provide email address (Pvt. mssge me if you like) I will forward a couple of brochures that will give you an idea of their structure.*.
    Many thanks - will do

  9. #9
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    Quote Originally Posted by lawson View Post
    Thanks very much Funguspudding and Joshuatree.

    I have no experience in this space so always worry that I don't know what I don't know - when investing in a different type of investment product and asset class.

    I'm still trying to decide what is best I suppose it really depends on age and circumstances to a degree. I will probably divert money that would normally be in cash or bonds into a couple of these so I'm comfortable with them being very very long term holds and also if inflation does make a real appearance then rents should to some extent keep pace with some annual rent increases being circa 3% or linked to cpi. So I am leaning towards going down this path as you say for income.

    Cheers

    Tread with caution. Syndicates have a place but offers vary considerably.
    Ask yourself why they are available at all (ie if they are such high quality why havent they been snapped up by the LPTs) and what would happen in a vacancy. It's common practice to induce tenants (often with a payment or rent holiday) to sign up to a lease that looks good to a mum/dad investor. This is then used to calculate an "independent" valuation. Whether or no that rent is truly "market" would be tested in a vacancy if not before. So review the fundamentals and other qualitative factors with a touch of cynicism. Plus the arrangements are usually geared heavily in favour of the offeror/manager e.g. current one by Augusta (vissy) is the biggest fees fest I have ever seen, its worth getting a prospectus just to witness the scale. Might still be a worthy investment but just be clear whose side the manager is on (clue, not yours).

  10. #10
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    Thanks Dibble.

    Good points. I had already observed that the return is a year one target in most of these type of property investments and there's no gaurantees so clearly returns may fall a little or even a lot short at times, being realistic.

    There's very little that will give a return that doesn't have some downsides though, a matter of picking your poison.

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