KEY POINTS:
Augusta Funds Management's latest proportionate ownership offering of the Bendon building follows hard on the heels of a similar scheme for the APN Print property at 587 Great South Rd, Manukau City.
A total of 169 $50,000 proportionate title interests were offered in that property and it ended up being oversubscribed, says Bayleys' Mike Houlker, who was the marketing agent for the scheme.
"We had interest from all over the New Zealand and there were a number of high net worth individuals who took up to 10 titles.
"In fact we had several individuals wanting to take a lot more than that but they were too late."
Houlker says one of the main attractions for investors was the long lease to a major public company.
APN has a 12-year lease over the 13,312sq m industrial building and its 3.46ha site, with three rights of renewal for a further 20 years.
He says there has already been very strong interest in the Bendon offering in the first week that it has been to the market, with some expressing interest in up to $1 million of titles.
Houlker says the changing property investment environment of higher yields and lower borrowing costs is making property syndications more attractive to investors.
Many were also looking for alternatives for money that was previously in the bank earning high interest rates.
