Distribution centre syndication delivers strong returns to investors

Distribution centre syndication delivers strong returns to investors

In late 2019, we launched a property syndication to purchase a Heinz Wattie’s distribution centre in Hastings for $29.1m. Two years later, the syndication has consistently delivered strong cash returns and capital growth.  

First, the syndicate has achieved an 8% return (paid monthly) – in line with our initial projections back in 2019.  

The property has also significantly increased in value, from a purchase price of $29.1m to $33.5m (as of March 2021).  

Taken together with the rental yield, even if we assume no further valuation increase since March 2021, investors have had a total return of 22% per annum from the syndicate’s inception to the end of January 2022.  

In every way, the distribution centre has been a solid investment for those who invested in 2019. The distribution centre is situated next to both the Heinz Wattie’s processing plant and a rail siding, with a lease until April 2027, so we expect it to continue to perform well for investors well into the future.