Provincia Property Fund Ltd has gone unconditional on the $7.1 million purchase of 102A Carbine Road & 4 Gabador Place, Mt Wellington.
Provincia chair Olly Newland announced a $4.15 million capital-raising by the unlisted fund in conjunction with the new acquisition – 83 share parcels of $50,000 available to investors. The capital-raising will close on Wednesday 11 December.
The 8921m² industrial property on 3 titles has access to both Carbine Rd & Gabador Place and a net lettable area of 5124m².
The new acquisition comes 3 weeks after Provincia settled the purchase of its fifth property, at 1/30 Kerwyn Ave, East Tamaki.
Provincia asset manager Jack Revill said the $7.1 million Carbine Rd price represented a 6.1% yield. He added that a registered valuation obtained during the due diligence period came in at $7.93 million, giving investors an immediate equity gain of $830,000.
He said the property was under-rented and had significant upside. It’s fully occupied with 3 tenancies.
This acquisition takes the total value of properties owned by the fund to $39 million, with a combined rental income of $2.3 million and risk spread over 16 tenancies.
Longtime investor Olly Newland chairs the company and is in partnership with Carl Burling in the fund and in commercial property investment advisory firm Newland Burling & Co Ltd.
11 October 2019: Provincia industrial property fund settles 5th acquisition
Attribution: Company release.