The idea of investing in property is an inherently Kiwi paradigm. It’s something that most of us have been told from an early age to do as soon (and as often) as we can. But what if there were other avenues and models of investment available to us that delivered similar opportunities for those sought-after capital gains? (Without having to purchase an entire property yourself.) This fascinating space is being harnessed by local investment company Fortland Capital, whose unique offering is breaking wide-open investment opportunities like never before.
This is how it works. Fortland Capital’s experts identify a promising parcel of land in a high-demand, city-fringe area, before acquiring it and syndicating it to investors, offering proportional ownership and allowing the investment to run debt-free. The team then works with best-in-class development consultants to prepare the land to foster future communities. It undertakes strategic master planning and shepherds the land through cumbersome zoning and resource consent processes, which essentially enhances its pre-developed value. The final step is the divestment of the land with returns for investors, measured in multiples. Basically, the land is identified and managed by Fortland Capital, prepared for development and sold for the purposes of urbanisation — all without you, the investor, really having to lift a finger at all.
Not only is this a straightforward way to invest in property, but it is a clever solution to the huge growth that a number of our city centres have been experiencing. After all, New Zealand’s burgeoning population is already creating a significant housing shortage. Now more than ever, there is a huge need for thinking outside the box when it comes to future-proofing our communities, and indeed, creating new ones in the process.
Ultimately the community investment offered by Fortland Capital is an entirely unique model. There really hasn’t been anything like it on offer in New Zealand before. At its heart, the aim here is to unlock the future potential of our growing cities, utilise the resources at our disposal, and take the kind of long-term, big-picture view that we need if our urban infrastructure is to keep up with demand. Here, the idea of positive urban change is married with the appealing potential for capital gains, and beyond that, it gives members of a community the opportunity to not only buy into a piece of land that could affect their future but to have a say in it and benefit from it in a very tangible way, too.
Currently, Fortland Capital has The Kāmahi Land Fund open to investors, which is acquiring 62 hectares in Karaka, Auckland. The minimum investment is $50,000, with a targeted 38.4% annualised return on investment, and it is open to wholesale investors only. (Fortland’s ownership model effectively fractionalises the land asset, making it a viable investment for a number of investors with $50,000 or more.) Importantly, embarking on a community investment with Fortland is a medium to long-term commitment given that Fortland’s pre-development process could take up to seven years to be enhanced with plan changes, master planning and consents. Although given the huge potential created by the process, we’re sure any wait will be worth it.
The Kāmahi Land Fund is available only to Wholesale Investors as defined under the Financial Markets Conduct Act 2013. An eligible investor certificate, or safe harbour certificate, in a form satisfactory to the Manager will be required, together with any other evidence that the Manager requires in order to confirm wholesale investor status. This is a strict requirement. The targeted annualised return on investment projection is not guaranteed in any respect, and is based a series of assumptions in respect of sale exit value, time, and other factors. There are inherent risks and uncertainties and actual results may differ materially and may or may not materialise. Please refer to the Important Information and Disclaimer Section at the front of the Information Memorandum (IM) for more detail on this. The actual returns are likely to differ from the projected figures. Investors are encouraged to review all information provided in the IM and to conduct their own due diligence on the information provided.