Syndication specialist Erskine + Owen Ltd has closed its offer of a Dunedin building to wholesale investors after all units were taken up within 2 weeks.
Erskine + Owen took its Maclaggan syndicate to the market on 30 July, with a scheduled close date of 26 August.
Erskine + Owen bought the central city office building at 43 Maclaggan St, fully occupied by the Accident Compensation Corp, for $2.265 million and projected a pretax cash return of 8%/year for its wholesale investors.
The ACC has occupied the building since it was constructed in 1989 and has its next lease renewal due in June 2022.
Erskine + Owen business development manager Toby Hunn said yesterday: “The speed with which this offer has been taken up, within 2 weeks, illustrates not only the interest in good quality stock with high quality tenants, but also the growing desire by investors for proportional investment opportunities, and a vote of confidence in Dunedin.”
The syndicator offered 13 units at $100,000/unit, with incremental investment in $50,000 lots.
Lisa Phillips & Alan Henderson founded Erskine + Owen 12 years ago to assist buyers in securing property throughout New Zealand, and expanded into syndication & proportionate ownership over the last 2 years. It’s completed $25 million of syndications, has about $55 million of conditional contracts in progress and intends to grow its syndication business within the $5-30 million property value range.
A second company, Point Property & Portfolio Management Ltd, has over 1000 properties under management in Auckland, Hamilton & Queenstown.
Erskine + Owen
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Attribution: Company release.