Residential Syndication

Buying property in New Zealand is now a lot more challenging than just a few years ago. Higher prices and more restrictive lending has constrained many.

We have a solution.

Erskine + Owen have launched its residential syndication solution to assist those who can’t currently buy directly. It’s shared ownership, run by Erskine + Owen.  Click here to view our brochure.

For NZ$100k (minimum) you get exposure to three properties; one in Auckland, Hamilton and Queenstown.  They will be standalone dwellings on full site land parcels.   We have targeted these areas and property type for their capital growth potential over the next five to 10 years.

Key Benefits:

  • Exposure to three key New Zealand growth areas for a much smaller investment than if had to invest directly
  • No cash losses… the borrowings will be structured in such a way to ensure the rent covers all expenses
  • Your liability is effectively limited to the equity you put in. There are no personal guarantees to the bank.
  • Erskine + Owen does all the work, we buy the properties, arrange the finance, due diligence and manage the portfolio
  • Your money is exposed to sensible leverage…40% to 50%
  • It’s easy to liquidate – if you want to sell, the co-owners have first right of refusal and then your interest is promoted to our database of potential investors.

This opportunity is only open to “wholesale investors.” To determine whether you qualify, scroll below to view the FMA’s requirements.

If you want to learn more, simply email syndication@erskineowen.co.nz to request a copy of our Information Memorandum.

Act now or miss out on a great investment opportunity. There’s always going to be a good reason not to invest; waiting for the market to peak, for the market to bottom out, for the market to start lifting… But, the biggest reason for failure at property investment…? Not acting.

 

What is a ‘wholesale investor’?

Because our residential syndicated property offer has some unique features, to subscribe to the offer you will need to qualify as a ‘wholesale investor’.

Wholesale investor is a term used in the Financial Markets Conduct Act 2013, to describe a person (or business) with a good understanding of different investment vehicles and how they work.

Am I a wholesale investor?

There are four ways to qualify as a wholesale investor: an eligible investor, large investor, investment business, or investment activity. You could qualify as:

  1. An eligible investor. This is someone who can demonstrate that they have enough experience in buying and selling financial products, that they’re able to make informed decisions about the benefits, risks and values of different investment types.

If you’re an eligible investor, you will understand the type of information you need before   making a decision to invest, and will be able to assess when you need to know more.

  1. Investment activity. You can show that within the past two years you’ve been involved in significant investment activity. This means you have owned a financial portfolio worth at least $1 million; or, you have carried out transactions to buy financial products worth $1 million or more.

Under the investment activity criteria you could also have worked for an investment business within the past ten years, and for at least two years during that time, been involved in investment decision-making.

  1. A large investor. Your net assets, or consolidated turnover over the past two financial years, is $5 million or more.
  1. An investment business. If you have a professional certification or experience that shows in-depth financial knowledge you could qualify under this criteria. For example, you could be an investment manager, registered financial adviser, broker, underwriter or licensed insurer.

How do I demonstrate I’m a wholesale investor?

On the subscriber certificate, you need to set out why you qualify as a wholesale investor. You can see the template subscriber certificate here (LINK).

If you qualify as a wholesale investor because you’re an eligible investor, then you will also need to supply a confirmation of certification which is completed by a lawyer, registered accountant or authorised financial adviser.

 

To find out more about wholesale investors, you can visit the Financial Markets Authority website here.

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