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 which contains the details of the property and the investment. Investors must complete and sign the application form located within the Product Disclosure Statement and provide along with payment the applicable identity verification (as required under the Anti-Money Laundering (AML) legislation).
The Team at Bayleys Real Estate are more than happy to talk you through what is required – we are here to help.
Bayleys Real Estate provides access to commercial, industrial and retail investment properties located in both New Zealand and Australia. The majority of offers are made available to all potential investors located in New Zealand. At times certain investments are made only to wholesale investors. This is made very clear on the documentation. For more information on who is a Wholesale Investors click here.
Syndicated investments marketed by Bayleys have no fixed term. Commercial property should generally be looked at from a long-term perspective. The Manager of the property, Augusta Funds Management, will make recommendations on when they see the best time to sell the property.
In most cases the property is sold upon the passing of a resolution by investors of 75% or more (one vote is attributable to each Limited Partnership Unit).
Yes. Upon the sale of the Property and the winding up of the Scheme, investors may receive a return which is greater than the $50,000 paid for each Unit if the net sale proceeds from the sale of the Property exceed the total capital paid by Investors. The property can only be sold upon the investors approval. In most cases the approval threshold is 75%.
Recent sales of the property as a whole include 360 Dominion Road, Auckland (the ASB Bank call centre building) which was sold in 2016 providing the 180 investors with a very satisfying 18.17% IRR, turning their $50,000 invested per unit into $73,592 per unit in less than 4 years, while also delivering them a running 9% cash return.
Yes. An investor has the right to sell their unit(s) at any time.
In most cases the transaction is facilitated by the manager of the property syndication.
In the last 12 months (to November 2017) no sales of units in syndications sold down by the Bayleys Real Estate have transacted at less than the original $50,000 investment with many trading above $60,000.
For more information click here
Investors should be aware that the past performance is not always indicative of future performance. There is no guarantee that investors will get back the original purchase price or a higher price. 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.
In most cases distributions are made to investors monthly in arrears and paid directly to the investor’s nominated bank account. In most syndications sold down by Bayleys Real Estate payments are made on the 7th day of each subsequent month.
For New Zealand properties (excluding Portfolio Investment Entity (PIE) structure), the monthly distributions are paid to the investor on a gross basis and tax is paid by the investor as part of their annual tax return at their usual marginal tax rate.
Investors are, under current legislation, able to depreciate the fit out and chattels for taxation purposes. The manager will provide investors with an itemised list of assets to enable maximum depreciation to be claimed. It is also the intention of the manager to provide (on an ongoing basis) a fixed asset schedule with assets depreciated at maximum allowable tax rates.
For New Zealand properties 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.
Under the PIE structure the tax depreciation on building fit-out and chattels is claimed by the Manager and the benefit passed on to the investors.
For Australian properties, sturctures differ depending on the specific asset and value. The most recent offer was taxed under the Foreign Investment Fund (FIF) Regime.
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 issues the Product Disclosure Statement. Augusta is responsible for the Limited Partnership 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 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.
The fees include management, brokerage, legal and accounting which vary from syndication to syndication. These are outlined in detail in the relevant Product Disclosure Statement. All forecast pre-tax returns are after any fees.
Under the Financial Markets Conduct Act 2013 and Financial Markets Supervisors Act 2011 the Limited Partnership has an appointed Supervisor. In the case of Augusta 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 Governments’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.
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.