A PROPERTY INVESTMENT OPPORTUNITY BUDGETED TO PROVIDE AN ANNUAL RETURN OF 16.6% WHILE GIVING THE INVESTOR RIGHTS TO USE THESE INCREDIBLE PROPERTIES.
Three stunning residences being developed just 7 minutes' drive from Queenstown CBD. The prestigious Waimarino Lodge will operate these incredible homes that offer strong cash flow returns along with proven capital growth in this high-performing market.
(ONLY OPEN TO ELIGIBLE INVESTORS UNDER NEW ZEALAND'S FINANCIAL MARKETS CONDUCT ACT 2013 AND SUITABLE TO SOPHISTICATED INVESTORS)
The Offer
This is a rare opportunity to invest alongside the project founder and lodge operators and benefit from a significant development margin, along with strong and ongoing income and expected capital growth.
Queenstown property values have increased by an average of 6.08% year-on year over the past two decades, and this growth is expected to accelerate as demand continues to outpace supply. With limited premium land available for development and visitor numbers projected to rise by 158% over the next 30 years, high-end properties in this exclusive portfolio are positioned extremely well.
CAPITAL GROWTH
Queenstown's average property value has grown by an annual rate of 8.95% over the past decade and an average of 6.09% over the last two decades. Base on the conservative lower increase of 6.09% these properties are expected to have a combined value of $194M in 10 years time.
CASHFLOW
The three properties are expected to generate annual EBITDA (Earning before interest, tax, depreciation and amortisation) of $10.7M per annum. This is based on an occupancy of 55% and average nightly rate of $23,000 per night which is less than is being achieved by lesser properties in the district.
The properties have a breakeven occupancy after all costs of just 19%.
THE NUMBERS
The project has a development cost (excluding land) of $15,275 per square metre, positioning it at the premium end of New Zealand’s development market. The projected property values are based on an average of $31,350 per square metre, aligning with sales prices already achieved by the developer at less prestigious locations. These residences will set a new benchmark for luxury living in New Zealand. The development brings together an exceptional team of designers, builders, and craftsmen to create homes of unparalleled quality and luxury.
INVESTMENT HIGHLIGHTS
79%
BUDGETED PROPERTY DEVELOPMENT MARGIN
16.6%
ANNUALISED BUDGETED RETURN ON INVESTMENT
158%
PREDICTED VISITOR POPULATION GROWTH BY 2053
$10.7M
BUDGETED ANNUAL EBITDA
19%
BREAKEVEN ACCOMMODAT ION OCCUPANCY
20.5 X
BUDGETED INVESTMENT MULTIPLE
AVAILABLE TO OFFSHORE INVESTORS
Due to the commercial nature of this development and ongoing commercial use offshore investors can take an interest in this project up to a 25% ($6.25M)
INVESTOR PROPERTY USE
The properties have a budgeted occupancy of just 55% meaning there will be 300 vacant nights. These nights are available to investors.
