Welcome to our July newsletter. This month we will cover the following topics:
The War is Won, Prepare to Occupy Director's Thought piece by Alan Henderson –A MUST READ!
Introducing our new Chief Operations Officer Roger Wilson We are thrilled to have recently welcomed our new COO Roger Wilson to the team. See below a short clip where Roger explains his industry experience.
Boardroom Briefing We are preparing to kickstart our briefings in our Auckland boardroom where Alan will share his insights on the property market.
Current offers
The Brackenfields Property Syndicate continues to project an 8% P.A.* cash return, paid monthly, and has been well received by our current investors. With interest rates starting to trend downwards, this opportunity is certainly worth securing.
The Montreal Property Syndicate has an 8% P.A.* projected cash return and the property's location, and quality of tenant has attracted many investors to this opportunity, with limited units remaining.
Erskine Owen Capital Fund offers a forecast pre-tax return of 10% and with a minimum investment of $50,000 is a popular entry point for new investors.
The War is Won, Prepare to Occupy
Director's Thoughtpiece by Alan Henderson
Our Olympics is prevailing over interest rates. When I say ‘our’, I mean all of us who have to battle high interest rates on our property debt. It is a 15 round boxing match.
However, it certainly feels like the fight is won.
For the past several market commentaries we have been closely following inflation and interest rates. I have commented extensively since Christmas 2022 that the back of inflation was broken, the job was done, and it was a matter of letting things work their course.
More recently I have highlighted that inflation in NZ is measured year on year on a rolling basis and it shows inflation continuing to track above 3%. However, month on month that is not the case – we are back under 3%. And therefore, I have argued that we can now afford to start dropping the OCR.
Erskine Owen recently welcomed Roger Wilson to the business as Chief Operating Officer. Erskine Owen Director Alan Henderson describes Roger as a great addition to the business, with Roger having come from two of the big four accounting firms, KPMG and PriceWaterhouseCoopers.
In this interview, Roger details his experience as well as his personal hobbies and shares why joining Erskine Owen feels like coming home.
We are excited to bring you our Boardroom Briefings. Commencing next month in Auckland, Alan Henderson will address topics such as:
How the new National Party housing policy could affect house prices
Why the OCR will almost certainly come down this year
Why labour productivity matters to the property industry.
Registrations are currently open for this event, which will take place at the Erskine Owen office in Newmarket, Auckland. Once you have registered your interest, we will be in touch with dates and times available, so keep an eye on your inbox.
Last week we launched our first issue of the Weekly Property Roundup, where we consolidate relevant current topics of interest to property investors and explain our take on each. The Weekly Property Roundup is available to those who opt-in to receive it. If you would like to join the mailing list for this, please opt-in below.
The Brackenfields Property Syndicate continues to project an 8% P.A.* cash return, paid monthly, and has been well received by our current investors. Taking into account interest rates are trending downwards, this presents a great opportunity to secure an investment offering a great return.
According to the Christchurch Press, Amberley is experiencing notable growth, and the NZ Herald reported a 58% surge in Amberley's population over the past 12 years. This growth is marked by the addition of 8 new subdivisions and the ongoing development of a new $200m retirement village.
If you would like to further discuss this opportunity or download the Information Memorandum, feel free to reach out to us via the link below.
Montreal Property Syndicate 8% P.A.* Projected Cash Return
Located in a highly sought after area of central Christchurch, the Montreal Street property is a commercial warehouse built in 2011 and has Ideal Electrical as the anchor tenant. With a projected cash return of 8% per annum, the property was purchased for $7.5m and has a registered valuation of $8.35m.
Ideal Electrical as anchor tenant (Ideal Electrical is owned by a global business, Rexon Group) on 6-year lease term as of 1 June 2023
Low vacancy rate
WALT 5.48 years
NBS 100% warehouse 78% office
Dual access
1,432m² double height warehouse/showroom and 338m² office
The capital raised for the Erskine Owen Capital Fund is exclusively for use by Erskine Owen property investment schemes or their corporate manager. It enables the business to meet committed financial obligations relating to the establishment and subscription of a scheme.
Recently Alan Henderson shared some insights on the purpose of the fund, risk and liquidity. See his commentary below.
*Projected pre-tax return for full one year period. Details on how the return will be calculated, and the risk associated with the investment and return, will be set out in the relevant Information Memorandum.
Offers will be restricted to “Wholesale Investors” under clauses 3(2) and 3(3) of Schedule 1 to the Financial Markets Conduct Act 2013 (or to any other person to whom an exclusion applies under Schedule 1 of that Act). Preliminary indications of interest are being sought at this stage and no indication of interest will involve an obligation or a commitment to participate in the Offer.
Erskine Owen, 103 Carlton Gore Road, Newmarket, Auckland 1023, New Zealand
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