Kahui Holdings Limited Partnership

The attraction of a sale and lease-back model is that it provides syndicate investors with regular monthly distributions based on the rent the syndicate receives from the lessee, and capital gain if the property increases in value. Other advantages of this approach are that it makes the investment more passive and management fees are lower. 

The syndicate owns an older building of 2,090 m2 and another 1,536 m2 built in 2015.

The Property is located at the southern most end of the Riverlea Industrial Area in the South East of Hamilton and is under a long term lease to Livestock Improvement Corporation Limited (LIC). 

LIC has been established since 1909 and is a high quality lessee counterparty. It has assets of over $320 million, annual turnover of approximately $200 million, and is one of the oldest farming co-operatives in New Zealand.

The Property is key to LIC’s core dairy herd improvement and diagnostic businesses and comprises both laboratory and office spaces. The laboratory spaces include a diagnostic facility in the older building and a new herd testing facility in the newer building.