The strong demand for Wellington residential rental accommodation is confirmed by The Wellington Company’s announcement of a third property offer to retail investors.

The Wellington Company is offering investors a share in a Wellington inner city property, with a projected annual dividend return to 31 March 2018 of 9.25% gross.  The offer is being made through TWC Quantum Dixon Limited, a new company that will buy nearly all of the building at 15-21 Dixon Street in central Wellington.

The Dixon Street building was converted three years ago by The Wellington Company from office space into residential accommodation and has had full occupancy ever since.

The Wellington Company chairman Ian Cassels confirms that The Wellington Company continues to buy office buildings in Wellington and converts those to residential apartments and hotel accommodation.

The accommodation sector continues to be buoyant, with hotel and serviced apartment occupancy rates close to all-time highs.

Cassels said The Wellington Company’s first two single-building property offers, on Boulcott Street and Manners Street, enjoyed virtually 100% occupancy with projected returns being met (or surpassed in the case of the Boulcott Street property).

He was confident the new offer by TWC Quantum Dixon Limited, would also meet its projected returns.

“We completed the conversion and tenanted the Dixon Street building three years ago.  The property is fully tenanted”.

The new Dixon Street offer is again being supported by broking and advisory firm Chris Lee & Partners Ltd whose clients were strong supporters of the previous two offers.

Parcels of $25,000 (representing 25,000 shares) will be issued to raise $9.325 million; with Ian Cassels investing $1.75 million, and bank funding for the balance.

The Wellington Company’s first share offer, to purchase the building on Boulcott Street, completed five years ago has been successful with the asset backing per share increasing by 20% and annual dividends now at 9.25%, up from the initial 8.75% per annum. This is the same rate of return as that projected for TWC Quantum Dixon Limited.

Cassels also confirms that the Dixon Street building has passed inspection by seismic engineers following the Kaikoura earthquake.

A copy of the Product Disclosure Statement for the offer of shares in TWC Quantum Dixon Limited can be obtained from the Disclose Register (www.business.govt.nz/disclose) under the offer number OFR11052.

TWC Quantum Dixon Ltd share offer has now closed. For more information, please refer to the Quantum Dixon Product Disclosure Statement.

Any media enquiries can be addressed to Ian Cassels or William Gorrie at The Wellington Company.