INVESTMENT OPPORTUNITY
TWC QUANTUM APARTMENTS LIMITED

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8.75% pa Projected Income Return

Wellington's huge inner city population growth over the past ten years looks set to continue for the foreseeable future - as does the demand for well located inner city rental apartments. The Wellington Company is an established Wellington property investment company and we're looking for investors in one of our well-performing inner city apartments buildings.

The Offer

The Wellington Company is promoting an offer of shares (Offer Shares) by TWC Quantum Apartments Limited (Company).

The purpose of the offer is to raise funds to enable the Company to purchase the Quantum Apartment building located at 59 Boulcott Street, Wellington. The property is being acquired as a long term investment to generate a stable and consistent income return for its shareholders.

Details of the Offer

Issuer:
Security:
Amount:
Issue Price:
Minimum Investment:
Projected gross income return:
Dividends:
Opening date:
Closing date:
  TWC Quantum Apartments Limited
Ordinary shares
4,625,000 shares
$1.00 per share
$25,000
8.75% per annum (to March 2014)
Paid quarterly in January, April, July and October each year
31 July 2012
31 August 2012 (unless extended by the Company)

The Property

TWC Quantum Apartments will acquire the residential apartment building at 59 Boulcott Street, Wellington from 59 Boulcott Limited (a related company of The Wellington Company Limited).

The property is a nine level residential apartment building constructed in 1987 as office accommodation and subsequently converted into apartment accommodation.

The building comprises 26 individual self-contained apartments which are predominantly leased on a rolling annual basis to young professionals and students working and studying in Wellington city. The apartments are fully compliant, well located and offer a solution to people coming into Wellington for work and education.

The Company will purchase the property for $10,500,000. The market valuation of the property was independently assessed as at 31 March 2012 at $11,000,000 (plus GST if any).

Subordinated Shares

In addition to the Offer Shares, Shares 59 Limited, a related company of The Wellington Company and Ian Cassels, has subscribed for 1,125,000 ordinary shares (Subordinated Shares) for a total subscription price of $1,125,000. The Subordinated Shares are ordinary shares of the Company and rank equally with the Offer Shares other than in the event of a liquidation of the Company, in which case they will rank behind the Offer Shares for payment of their issue price.

Key Offer Highlights

  • Opportunity to invest in a large scale residential rental property
  • The property is well located within Wellington city
  • The property has a well spread tenant base with low historical vacancy levels
  • The property meets modern earthquake standards
  • Projected gross income return of 8.75% per annum (to March 2014), with dividends payable quarterly
  • Partial capital protection through the issue of Subordinated Shares to a cornerstone shareholder
  • Reserves for future capital expenditure and maintenance established

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Offer Document

A combined prospectus and investment statement dated 30 July 2012 has been registered for the initial public offering of ordinary shares in TWC Quantum Apartments Limited.

A copy of that offer document can be obtained by calling
0800 782 682
or emailing us at reception@twc.co.nz.

The information presented above should be read in conjunction with the offer document.

Neither the Offer Shares nor the Subordinated Shares are guaranteed by the Company, The Wellington Company, Shares 59 Limited or any other person.

2007 The Wellington Company Ltd