Wellington properties underpin Vinta's launch of $121m wholesale fund
Monday, 25 July 2016
A $121 million property fund is set to launch in New Zealand, with three Wellington commercial properties kicking off its initial portfolio.
Seed assets for the fund, which is being established by one of the largest fully integrated private property groups in Australia and New Zealand Vinta Funds Management, includes three large office buildings in the capital.
The properties are, 33 Bowen St - the recently refurbished and award-winning 12-storey headquarters of the Ministry of Education; 110 Featherston St - an 8-level office building with Maori Trustee and NZ Crown tenants; and 13-27 Manners Street - a 15-storey building occupied by quality public and corporate tenants, including Nokia and Healthcare of New Zealand.
The fund, known as Vinta Property Investment Fund, will be overseen by a board of directors led by Fiona Oliver.
Oliver brings diverse domestic and international governance and business leadership experience, developed over more than 25 years in addition to her specialist knowledge of the capital markets, investments and the financial services sector.
Vinta is seeking $80.6m in total equity from investors, of which up to $16m will be co-invested by Vinta.
The price per unit is $1, with a minimum number of units that an investor may apply for of 200,000 and multiples of 25,000 thereafter.
More than 72 per cent of income is sourced from the Crown and global telecommunications giant Nokia.
The seed portfolio has delivered an internal rate of return of 12.10 per cent per year over 14 years to June30, 2015.
Vinta head of distribution Simon Donohoe said the fund offered strong fundamentals and a new access point into direct property as an asset class.
'The Vinta fund offers strong fundamentals for long-term wholesale investors, for whom stability and income over time are critical factors.
'[It] will provide low volatility and real-property returns to wholesale investors, who can gain access to a slice of the market that is starved of product,' Donohoe said.
'A key priority of the Fund will be to continue to acquire additional properties that complement its investment strategy and provide diversification benefits across asset class, geography, tenant type and income.'
Properties in the fund will benefit from access to Vinta's professional management skills.
It will be managed by Vinta Funds Management Limited (VFML), a wholly owned subsidiary of Vinta, which has a 60-year history and track record of success in developing, owning and managing property, including 15 years as the owners of the three office assets that will go into the funds.