WHAT’S THE INVESTMENT MODEL?
The investment opportunity is being built by Safari Group (NZ) Limited and designed to exceed the exact specifications set by the internationally renowned Wyndham Hotel Group. Each property has it’s own unit title, which is leased back to an approved franchisee for a 30 year term (based on 15 + 5 + 5 + 5 years commercial lease agreement). This business model provides investors with a reputable tenant and the security of guaranteed income each year.
ARE THE PROPERTIES FREEHOLD TITLE?
Yes, you are purchasing a freehold unit title from the plans.
HOW MANY UNITS ARE THERE IN THE DEVELOPMENT?
There are a total of 42 units.
IS THE UNIT TENANTED?
Yes, the unit is leased to Marsden Asset Management Federal Limited, an approved franchisee for Ramada Suites Federal Street under a commercial lease arrangement of 30 years based on 15+ 5 + 5 + 5 years.
WHAT IS THE RENT?
The individual gross rents per unit range from $14,600 p.a. to $33,000 p.a. plus GST depending on which unit it is. This rent is paid into your account on a guaranteed monthly basis.
DOES THE RENT INCREASE?
An increase of 2.0% per annum (compounding), commencing on the anniversary of year 3 after the commencement date of the lease.
CAN THE RENTS DECREASE?
No, as per the commercial tenancy there is a ratchet clause that prevents the rent from decreasing.
WHO ARE THE TENANTS AND WHAT IS THEIR TRACK RECORD?
Ramada is part of the Wyndham Hotel Group – the world’s largest and most diverse hotel company, encompassing more than 7,190 hotels and 609,600 rooms in 66 countries around the globe.
WHAT DEPOSIT IS REQUIRED AND WHERE DOES THE DEPOSIT GO?
A 10% deposit is required which can be in the form of cash or a bond.
Deposit- This will be held in the vendors solicitor’s trust account until settlement of the development. All interest (less withholding tax and any bank and stakeholder handling charges) will be credited to you upon settlement.
DO I PAY GST ON THE PURCHASE PRICE?
No because there is a commercial lease in place the purchase is zero rated for GST. You do need to be GST registered prior to settlement.
CAN I LIVE THERE?
No it is a commercial investment property in respect of the Marsden Asset Management Federal Limited lease.
WHEN DOES CONSTRUCTION BEGIN?
Construction is due to begin in early 2015
There is allowance in the sales and purchase agreement for reasonable construction and development delays.
WHAT ARE THE OUTGOING COSTS?
(A) Body Corporate Fees
(B) Auckland Council rates
IS THERE A MAINTENANCE PERIOD?
Yes there is a 90 day maintenance period from the settlement date for purchasers in regards to any building defects in the unit.
WHO LOOKS AFTER THE MAINTENANCE?
Day to day maintenance is looked after by the tenant. Please refer to the lease and Body Corporate budget for full details.
WHAT IS THE CONSTRUCTION?
The Facades are being developed and will consist of precast concrete and compressed sheeting elements
ARE THERE ANY VENDOR PRE-SALE CONDITIONS?
No. The development is not conditional on the vendor achieving a set number of pre sales.
WHO IS THE DEVELOPER AND BUILDER?
Safari Group is the builder/developer whose background includes some of New Zealand’s prized construction and development projects. The Safari Group boosts extensive experience of all aspects of construction and development from both Residential and Industrial, through to combined Office and Commercial. www.safarigroup.co.nz
WHO ARE THE DESIGNERS?
STUDIO 37. The building has been specifically designed to fit into this location and incorporate all requirements of Wyndham Hotel Group to run a successful business.
WHAT IS THE CARPARKING?
See pricing schedule for car park allocation.
ARE THE UNITS FURNISHED?
There is a full FF&E package included in the price.
WHO SETS THE VALUES?
Independent valuers have set the values of all investment packages based on the rental income and market returns. The value of the unit will increase over time as with any other property investment.
CAN I BORROW FUNDS?
Yes, this is a standard commercial product which funding institutions will lend on.