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Jasper Acquires $25.2M Worth of Industrial Properties Across Auckland

Advantages & Disadvantages of a Sale and Leaseback transaction

Jasper, the technology-led commercial real estate fund manager, has successfully settled all assets in their latest Industrial Income Plus fund.

The Jasper Industrial Income Plus Fund is a private commercial real estate Fund that invests directly in industrial properties located in high growth areas, with resilient tenants and long-term leases. The Fund will deliver regular passive income and capital appreciation over time.

After receiving strong investor demand, the Fund was oversubscribed before the close date, with $15.2 million raised in new investor equity starting at a minimum investment of $25,000. Investors are forecast to receive a pre-tax cash return of 6 per cent per annum, with distributions paid monthly beginning in February 2021.

The Fund has acquired three industrial properties, located in Hobsonville, Papakura, and Mangere.

Westpoint Drive

The first property, 42 Westpoint Drive, is well located in northwest Auckland's Hobsonville industrial precinct. The area is poised to see strong population growth, with a significant number of new homes planned for the Hobsonville suburb. The property was built in 2019 and is finished to a modern quality with high stud warehouse accommodation and fully fitted office and amenities across two tenancies.

Tidal Road

Similarly, 63 Tidal Road and 67-69 Hunua Road are well located in leading Auckland industrial precincts with robust tenants and strong covenants. Tidal Road is a strategically located warehouse with fixed rental growth and an NZX listed tenant. The property is leased with six years remaining, and with built-in rental growth, it is expected to provide a stable cash flow in a growth location of Auckland. The tenant, Scott Technology NZ Limited (Scott Tech), was established in 1913 and has been listed on the NZX since 1997. Scott Tech specialises in the design and manufacture of automated production, robotics, and process machinery.

Hunua Road

Hunua Road is a recently refurbished site, in an established industrial locality, with a well-known national tenant in Thomsons ITM. The property is expected to leverage future population growth and road infrastructure upgrades to underpin forecasted rental and capital appreciation. The property was built in the 1980s and includes six recently refurbished industrial buildings complemented by a substantial yard.

Mark Campbell, Chief Investment Officer at Jasper, said: "We have aggregated a portfolio of industrial properties with strong fundamentals, in a sector that has remained resilient throughout the COVID induced economic shocks and outperformed other commercial real estate sub-sectors. We have secured bank funding from ASB and will co-invest alongside our investors, so our money is in with theirs."

"We have steered away from a single asset with a single tenant. With multiple buildings, tenants, and locations, the Fund offers investors instant diversification from one simple investment, buoyed by strong market tailwinds in the industrial sector. It delivers an attractive risk-adjusted return."

Simon Felton - Jasper

Simon Felton

Head of Acquisitions

Posted on 21 Dec 2020

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Jasper is an experienced operating partner for family office and institutional investors wanting access to high-conviction real estate strategies across Australia and New Zealand. We co-invest alongside our partners in each joint venture.

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Important Disclosures

Liquidity Not Guaranteed: Jasper offers secondary market functionality on its platform, however, there is no guarantee that you will be able to exit your investments on the secondary market or at what price an exit (if any) will be achieved.

Performance Not Guaranteed: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this website will be profitable, or equal any corresponding indicated historical performance level(s).

Risk of Loss: Investing in commercial real estate involves a high degree of risk and may result in partial or total loss of your investment. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish.

No Personal Advice: Jasper does not provide personal advice or recommendations. The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. It is important for you to consider these matters and to seek appropriate legal, tax, and other professional advice before making a decision.

Wholesale Offers: Jasper currently only offers financial products to wholesale (or other qualifying) investors. Jasper does not currently hold a Managed Investment Scheme (MIS) license.

FSPR No. 692011. Information on this page is based on information available to us as of the date of posting and we do not represent that it is accurate, complete or up to date.