If your questions are not answered or you would like to discuss anything further, please feel free to contact any of the Syndication & Investment Products team
All potential investors must request a copy of the Product Disclosure Statement or Information Memorandum which contains the details of the property and the investment. Investors must complete and sign the application form located within the documentation and provide, along with payment, the applicable identity verification (as required under the Anti-Money Laundering (AML) legislation).
The Bayleys Syndication and Investment Products team will assist you with the application process to ensure it is as easy as possible. We are here to help.
Bayleys Syndication and Investment Products team provides access to commercial, industrial and retail investment properties located in both New Zealand and Australia. These investment opportunities are either in the form of a “syndication” – usually a single asset in which a group of investors participate in the ownership, or an “investment fund” - usually a group of properties with similar attributes in which investors can purchase shares.
The majority of offers are made available to all potential investors located in New Zealand (known as Retail Investors). At times certain investments are made only to Wholesale Investors who must meet certain eligibility criteria. This is made very clear on the relevant documentation.
The investments marketed by Bayleys go through a robust selection process by the Manager. As such, there is no set timing on when property investment opportunities will be available. On average five offers are marketed each year. We encourage you to provide us with your contact details so we can keep you informed of when the next investment opportunity is available.
In most cases the investments marketed by Bayleys have no fixed term. Commercial property should generally be looked at from a long-term perspective. For syndicates, the Manager of the property will make recommendations on when they see the best time to sell the property or alternatively investors can sell their individual investment unit/share (see below).
In most cases the property is sold upon the passing of a resolution by 75% or more of the investors.
Yes. An investor has the right to sell their unit/share at any time, commonly referred to as a “secondary sale”. In most cases the transaction is facilitated by the Manager of the property syndication/fund.
Yes. Upon the sale of the property and the winding up of the scheme/fund, investors may receive a return which is greater than the amount paid for each unit/share if the net sale proceeds from the sale of the property/properties exceed the total capital paid by investors. The same may occur with a secondary sale. There is no guarantee that there will be any capital gain.
In most cases distributions are made to investors monthly in arrears and paid directly to the investor’s nominated bank account
For New Zealand assets/funds structured as a Portfolio Investment Entity (PIE), at the time of application investors elect their Prescribed Investor Rate (PIR) based on their taxable income. Investors’ PIR is then used to calculate the tax payable on the income allocated to them and the distributions to investors are net of this amount.
For New Zealand assets (excluding Portfolio Investment Entity (PIE) structures), the monthly distributions are paid to the investors on a gross basis and tax is paid by the investors as part of their annual tax return at their usual marginal tax rate.
For Australian properties, structures differ depending on the specific asset and value. The most recent offer was an Australian Limited Liability Partnership (LLP), where the LLP has to comply with the tax requirements in both Australia and New Zealand.
Further information is available on request. The above is general in nature. If you have any questions relating to taxation of your investment we recommend you seek professional advice from your accountant.
Typically most of the offers utilise a mixture of equity and debt funding and are geared with non-recourse prime bank debt, with the balance investors’ equity. In a market like we have at present, where property income yields are significantly higher than borrowing costs, a sensible level of leveraging increases an investor’s return on equity.
Bayleys Real Estate Limited and Augusta have a long standing relationship with the key parties in the management on both sides transacting property together for over 20 years.
Bayleys are the sole selling agents for all Augusta investment opportunities – this means we will send you information on upcoming offers, answer any questions, take you through the properties and assist with completing the application forms. We will make sure the process is as easy as possible at every step.
Augusta are the Manager. They structure the offer, arrange bank funding and issue the Product Disclosure Statement or relevant documentation. Augusta is responsible for the investor management and property management, including the facilities and property management, preparation of annual financial statements and payments of monthly distributions. Augusta will send investors quarterly updates on their investment. Find out more about Augusta.
Investing in property syndications/funds has the usual risks associated with commercial property ownership such as tenancy risk and interest rate risk. The risks with regard to each property investment are outlined in detail in the relevant Product Disclosure Statement or Information Memorandum.
The fees include management, brokerage, legal and accounting which vary from offer to offer. These are outlined in detail in the relevant Product Disclosure Statement or Information Memorandum. All forecast pre-tax returns are after any fees.
Under the Financial Markets Conduct Act 2013, managed investment schemes must have a licensed independent supervisor. In the case of Augusta syndicate investments sold by Bayleys Real Estate the supervisor is Covenant Trustee Services Limited. The supervisor’s role is to monitor that the manager is complying with the Governing Document and look after the interests of the investors. For example they hold the certificate of title and authorise payments.
As part of the New Zealand Government’s commitment to a global fight against financial crime all New Zealand banks and financial institutions (including people who offer interests in property syndications) were required to make changes to their investor identification process.
New investors will need to provide approved identification and some additional documents, for example proof of address. Please contact us to discuss how this applies to you.
Contact the Bayleys team using the details on the reverse. Presentations are also held throughout New Zealand and we would welcome the opportunity to meet with you in person.
The contents of this website is general in nature. Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser which takes into account their personal circumstances before making an investment decision. Bayleys Real Estate Limited and the individual selling agents are not providing personalised advice. No person including Bayleys Real Estate, or the manager of the scheme, guarantees or promises any return to investors.
Neither Bayleys Real Estate Limited, the selling agents, nor the syndicate manager provides financial advice to prospective sellers of units and do not act as a broker for any party. There will be an administration fee for arranging the transfer. The secondary market facilities referred to are not a registered securities exchange or authorised financial products exchange, or regulated under New Zealand financial market laws.