357 East Tamaki Road, East Tamaki, Auckland
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| Investment Type | Proportionate Ownership Scheme |
| Distribution Rate p.a. | 12.00% |
| Annual Estimated Cash Distribution | $2,395.00 Gross |
| Note on Cash Distribution | Investors are paid a portion of the Scheme's profits in quarterly distributions. No tax is deducted at the time of payment. |
| Auditor | KPMG |
| Make up of Investment Parcel | $20,000 per parcel |
| Issue Date | 30 August 2002 |
| Net Asset Backing per Parcel | $43,936 per parcel as at 31 March 2010 |
| Distribution Dates | 30 September, 31 December, 31 March, 30 June |
| Fund Issues | From the 31 March 2010 Annual Report: We are pleased to report that the Scheme achieved a net operating surplus per Interest of $3,386, significantly ahead of budget. This provided an investor return for the year under review of 16.93% per annum. An amount of $2,400 per Interest was distributed equating to a 12% per annum return, consistent with forecast. The key reason for the better than expected operating surplus was a substantial reduction in interest expenses. At year end the cost of bank debt was fixed at 6.5% per annum. The Property The year ended March 2010 was another difficult period for the commercial property market due to soft economic conditions. However, despite the difficult environment it is pleasing to note that our valuers assessed the property’s value at $7.0 million, a $200,000 increase on the March 2009 valuation. Based on this valuation, the Scheme’s bank debt is a reasonably conservative 28% of asset value. The term loan is scheduled to mature in January 2011. Subsequent to balance date and under the terms of the lease a rent review took place on 27th April 2010 with the result that the annual rental of $561,347 per annum (+ GST) increased by 8.61% to a new annual rental of $609,700 per annum plus GST (excluding outgoings) effective from 27th April 2010. Proposed Sale of the Property Scheme Investors present at the meeting held on Friday, 11 June 2010 to either approve or not approve the sale of the property, asked us to attempt to negotiate a higher sale price with Kew Properties Limited (an associate company of the tenant, Downer EDI). We can confirm that we have conveyed that information to Kew and they have responded with a letter expressing their disappointment at the meeting’s result. They have also requested that the Scheme undertake some fairly extensive capital maintenance and we will be assessing their requirements over the coming months. Given this response we are not confident of achieving a new sale agreement. However, if we are successful we will call another meeting of investors in the Scheme to pass a resolution approving the sale of the Property at the amended price. |
Property
| Location: | 357 East Tamaki Road, East Tamaki, Auckland |
| Purchase Price | $4,400,000 |
| Valuation at Purchase | $4,400,000 |
| Current Valuation | $7,000,000 |
| Tenant Information | In 2008 Excell Corporation Limited was sold to Downer EDI Works Limited. Effective 30 September 2008, the lease was reassigned from Excell to Downer EDI. The term of the lease remained unaffected with final expiry still being April 2016. |