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 and closes on the 3rd September, with funds required by 9th September.

SIO will host online investor calls and Q&A sessions at the following times:

Tuesday 25th August at 6pm
Thursday 27th August at 4pm

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