Wholesale Co-Investment Opportunity - Strategic Christchurch Industrial Asset

SIO is establishing a syndicate to invest in a strategic industrial asset that generates strong income with fixed growth and meaningful long-term optionality. The property comprises approximately three hectares of flat, well-located land with dual access in the sought-after Russley industrial precinct. The buildings comprise 14,200sqm of warehousing, manufacturing and office space, recently upgraded and refurbished by SIO to meet the long-term needs of the Tenant, Rubisco Natural Fibres.

The investment offers immediate cash flow through a new 10-year lease to an established primary sector business with fixed 2.5% annual increases. The capital structure is deliberately conservative with debt limited to a 45% LVR and SIO is co-investing $1.7m (15%) in the syndication.

This investment is anticipated to deliver a pre-tax cash return of 7.75% per annum over the initial three years.

Whilst occupying a large strategic site in a highly developed location, the asset stands on its own merits as a long-term income-producing property. At the same time, the size of the landholding, its location and dual access provide genuine long-term optionality should the highest and best use of the site evolve over time.

Key Investment Points;

- - - Acquisition price of $21.6m and low debt level of 45% LVR
    - SIO co-investing $1.7m alongside new investors
    - Average pre-tax cash return of 7.75% per annum for the first 3 years
    - Strategic ~3ha landholding
    - Substantial industrial premises recently upgraded and refurbished by SIO
    - Established primary sector tenant with 10-year lease and 2.5% annual rental growth

SIO is raising $9.90m with parcel sizes starting from $500,000. The offer is available to wholesale investors.

With our last raise oversubscribed, we encourage you to register your interest on the below link or contacting Rob, Tom, James or Bex. A full IM will be provided on registration of interest.

Best regards,
The SIO Partners