13 William Pickering Drive, North Harbour, Auckland
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| Investment Type | Proportionate Ownership Scheme |
| Distribution Rate p.a. | 9.85% |
| Annual Estimated Cash Distribution | $2,462.50 Gross |
| Note on Cash Distribution | Investors are paid their portion of profit quarterly in arrears. As such no withholding tax is deducted. Investors are sent an end of year summary stating their share of profit and depreciation allowance for tax purposes. |
| Auditor | KPMG |
| Make up of Investment Parcel | $25,000 Interest (par value) |
| Issue Date | 15 June 2009 |
| Net Asset Backing per Parcel | $20,499 as at 31 March 2010 |
| Distribution Dates | 31 March, 30 June, 30 September, 31 December |
| Fund Issues | From 31 March 2010 Annual Report: As the result of a slight delay in establishing the Scheme the period under review is 9.5 months, slightly less than the 10 months covered in the original offer document’s forecasts. For this reason the net operating surplus per Interest of $2,009 was slightly below budget although the $1,946 per Interest distributed equated to the forecast cash return of 9.85% per annum for the 9 and a half months of operation. The Property Soft economic conditions have impacted on commercial property values in the year under review and our independent valuer’s views on the current market are reflected in the lower valuation of $7.10 million applied to the William Pickering Drive property. As you will be aware from our letter of August last year, Lexicon Systems Limited was placed into receivership and consequently vacated their premises. We are pleased to report that that space has been subsequently leased to the other tenant at the property, Blue Star New Zealand Limited for the remainder of their current term. Following an aggressive marketing campaign, in the absence of any other viable offers, it was assessed by the Directors that the proposal to lease this vacant space to Blue Star was in the best interests of investors. As you may be aware, the Albany Industrial Estate has suffered from several major business closures and relocations during the recession and as a consequence the leasing market has proved to be extremely challenging. Whilst the rental offered by Blue Star for the space is below that paid initially by Lexicon, a replacement rental income cash flow was secured. Moreover, under the terms of bank bond rental guarantee, the difference in rental income is being covered until mid-2011. Blue Star’s intention is to essentially convert the building back to a one tenancy format. The additional warehouse and office space is being used by them to good effect as their successful business has outgrown the space previously available to them in their original premises. Blue Star have already significantly upgraded the plantings and landscaping as well as building signage. They are an excellent tenant and take pride in the maintenance and appearance of the building. |
Property
| Location: | 13 William Pickering Drive, North Harbour, Auckland |
| Valuation at Purchase | $7,575,000 |
| Current Valuation | $7,100,000 |