20 Beaumont Street, Auckland
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| Investment Type | Proportionate Ownership Scheme |
| Distribution Rate p.a. | 4.00% |
| Annual Estimated Cash Distribution | $800.00 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 | Interests with a par value of $20,000 each |
| Issue Date | 17 December 2003 |
| Net Asset Backing per Parcel | $23,079 per parcel as at 31 March 2010 |
| Distribution Dates | 31 March, 30 June, 30 September, 31 December |
| Fund Issues | From the 31 March 2010 Annual Report: The Scheme achieved a net operating surplus per Interest of $2,032 which was ahead of budget. This provided an investor return for the year under review of 10.16% per annum. An amount of $900 per Interest was distributed equating to a 4.5% per annum cash return, consistent with forecast. The key reason for a better than expected operating surplus was a reduction in interest expense, from $269,991 in 2009 to $158,302 in 2010. At year end the Scheme had $2,720,000 of bank debt with an interest rate of 5.45% and $80,000 of bank debt with an interest rate of 5.01%. The Property The property’s valuation has continued to be impacted by the difficult financial climate. This year the valuation declined by $515,900 to $6.55 million as at 31 March 2010 with the higher vacancy levels at the property together with our independent valuer’s views on the current market being reflected in the lower valuation. We continue to maintain the property to its current high standard, in compliance with conservation requirements, and no major capital projects are planned for this year. We have achieved some leasing successes at the property. In the year under review we have signed leases to Häfele NZ Limited a wholly owned subsidiary of Häfele GmbH & Co., an established household name in Germany, and Loyalty (NZ) Limited, the company that issues Flybuys. Since balance date Dogs Breakfast Limited, trading as Nood, have extended their lease for a further three years. In addition we are in the final stages of a six year lease negotiation with a multinational tenant to take the 400 sqm space vacated by Melview Developments Limited earlier in the year. On a less positive note the ground floor tenant, Hall Brothers Limited have appeared to have fallen victim to the recession and ceased trading from their premises. We are working with Hall Brothers Limited to find a replacement tenant and have two firm proposals currently under negotiation. We are therefore optimistic that we will achieve 100% occupancy this financial year. As signalled in our recent letter to you, the current distribution rate of 4% per annum reflects the vacancy levels at the building. If we are successful in achieving 100% occupancy we will increase the cash distribution to at least 6% per annum and will take the property to market. |
Property
| Location: | 20 Beaumont Street, Freemans Bay, Auckland |
| Purchase Price | $5,680,000 |
| Valuation at Purchase | $5,740,000 |
| Current Valuation | $6,550,000 |
| Tenant Information | Loyalty New Zealand, the operator of Fly Buys have taken a new 5.5 year lease at the property commencing 14 December 2009. However, as signaled as a possibility to investors last year, one of the property's major tenants, Melview Developments Limited vacated their premises just prior to Christmas due to financial difficulties. Following these two latest tenancy changes the vacancy rate at the property now stands at 17%, the only vacancy being the tenancy previously occupied by Melview Developments Limited. However, we are seeing good interest from potential tenants for this well appointed tenancy and we are hopeful of filling this vacancy soon. |