Investment Options
Where does an investor invest to attain their investment goals? Perhaps in the share market and accept its volatility. Or the bond market and be exposed to the complexities of the different types of bonds available. Or place funds on deposit at the Bank and accept the current low interest rates. Or dabble in the commodities markets and risk the variability in returns. Or perhaps invest in property, which presents several different options.
Commercial Property Investment Options
Investing in commercial property may be achieved via several different methods, including the share market, direct private ownership, managed investment schemes or private equity.
At Maat, they prefer to offer private equity investment opportunities for the purchase of large properties. This method gives the control of the company to Investors, who have full voting rights. Maat has the responsibility for the financial control and management of the property once purchased. Shares are generally issued in $50,000 parcels. This type of investment suits people who are seeking on-going cash returns, with the prospect of capital growth over time.
Key aspects of Equity Investment
Some significant advantages are available to people under this type of investment. Most importantly, it is controlled under the regulatory environment of the Financial Markets Conduct Act (2013). This includes the preparation of a Product Disclosure Statement (“PDS”) in compliance with the Act. The PDS includes financial forecasts, details of leases, disclosure of risks, details of the physical state of the property, disclosure of the directors of the company presenting the investment option, and the application forms. Maat has responsibility for preparing the PDS with essential input from reputable legal and accounting practices. In addition, independent specialist reports are commissioned where necessary.
The management of the investment is also recorded in a Management and Ownership Deed, which details the rights of investors and the responsibilities of the managers.
A well – researched commercial property investment will also have adequate cash reserves to protect against the major risks of tenancy movements, interest rate rises, capital expenditure requirements and unforeseen maintenance.
Maat’s Managed Property Portfolio
Based in Albany, Auckland Maat manages a portfolio located in Auckland, Whangarei, Whakatane and Wellington with an array of national, international and government tenants, spread across the office, retail and industrial investment markets.
Our most recent purchase comprised the three building complex at 2-4 Fred Thomas Drive, Takapuna, which was partly funded by a $33.65m of equity subscribed for by investors.
Three directors of Maat are qualified accountants, Neil Tuffin, based in Auckland, Bruce Ellis who manages his own practice in Stratford and myself, Mark Hughson.
Maat can be contacted on 09 414 6078 or email info@maat.co.nz to register interest in investing in commercial property or to find out more about Maat’s commercial property management services. Alternatively, contact Mark direct on 06 278 4169 to arrange an appointment to discuss.
