DEER VALLEY ESTATE
USE INVESTMENT
Each 10% share in this syndication provides owners with up to 34 days of use per annum Why pay for and own more time than you'll use?
SHARE THE COSTS
Lifestyle assets can be expensive to maintain. Fractional Ownership means you only pay your percentage of all running costs.
FAIR USE OF ASSETS
We are committed to giving each owner fair and equitable access to their preferred use period. We do this with a mix of pre-selected periods and casual use periods. All managed on the AssetShare software.
ASSET VALUE APRECIATION
We are extremely focused on forming syndication's that provide capital gains. We do this by carefully selecting high quality properties and fixing a term end date that ensures maximum value is ensured
FULL LEGAL OWNERSHIP
You aren't buying a timeshare, you and the other shareholders are buying physical property. You become a Director and Shareholder in a company that owns the property, associated assets, the bank account and the insurance policy.
MANAGEMENT
As shareholders of a syndication, you can choose to engage AssetShare to manage part or all of your activity. This can be as little as bookings system management, to full accounting and admin management.
CLOSED
HOKITIKA, WESTLAND
70 Hectare Hunting / Native Bush Block and Hilltop Cabin
LOCATION: Hokitika, Westland
INVESTEMENT: 1/10th Share @ 92k
ANNUAL COSTS: 0-1.8k
TERM: 5 Years
Deer Valley Estate is a very special hunting and bush retreat property, currently being syndicated by AssetShare.
The goal of this syndication is to provide owners and their friends and families with the opportunity to enjoy the use of such an amazing property over the next five years, whilst providing excellent opportunity for gains on sale at the end of term. Their is also significant scope for the syndicate to develop parts of the property as glamping locations to generate an income and increase value (either themselves or as a joint venture).
The 170 acre north facing property in Kokatahi, 30 minutes from Hokitika and 3.5hrs from Christchurch, features stunning native bush and beautiful clearings, intertwined with a well formed access road and excellent quad bike tracks throughout. The views from the homestead and various other points of the property are out of this world. There are dozens of very special spots within the property, including a waterfall, waterways and view points.
Sited in an elevated and exceptionally private position, the property boosts an extremely comfortable and well maintained 2 bedroom off grid cabin and a good number of outbuildings. The home has recently been re-clad, roof replaced and had a modern and well sized solar system installed. The cabin includes an impressive Homeward stove that handles heating, water heating and cooking. The syndicate intends to convert part of one of the outbuildings to an 6-8 bunk sleepout, further increasing accommodations for friends and family.
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The property offers unapparelled opportunity for recreation and hunting. Bordered by hundreds of thousands of hectares of DOC land to the South East and with a large number of resident red deer and goats, this is a hunting mecca! 6.5h of deer fenced paddocks include 20+ Arapawa Sheep and provide a holding area for animals. The northern, western and part of the eastern boundaries are deer fenced, so there is potential to fence the entire block.
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USE:
Each 1/10th share provides an owner with up to 34 days of use per year. A 10 Days block is Pre-selected in order, to ensure everyone gets access to a period of time they would like. The remaining 24 days can be booked and used anytime after Pre-selection is completed. The additional 25 days are reserved for working bees, maintenance periods, construction etc, and are available for use by owners if unused.
In regard to Pre-Selection order, each owner is issued with a number from 1 to 10 on the order they enter into a S&P Agreement to join the syndication. In year one, selection of the Pre-Selected period starts with Owner 1 and ends with Owner 10. In year two, selection starts with Owner 3 and ends with Owner 2 (E.g. 3,4,5,6,7,8,9,10,1,2). In year 3, selection starts with Owner 5 and ends with Owner 4. Selection of the remaining 26 days can be booked anytime after the pre-selection process ends, either in advance or at short notice. AssetShare provides an online booking system to manage bookings and the calendar.
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STAGE:
The syndication has closed.
ADDITIONS / IMPROVEMENTS:
The property as it sits, is reasonably turn key, however we have identified a number of improvements and have allowed for $120'000 to be retained within the syndication for these and ongoing costs.
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Identified improvement include:
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Two modern quad bikes and a trailer @ 32k
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Convert part of garaging to a 6-8 bed bunk room and outdoor toilet / shower @ 18k
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BBQ Area and Fire Pit @ 6k
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General Fit out (Furniture, crockery, tools, etc) @ 7k
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House alteration (access to bathroom from lounge) @ 7k
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The above costs total approximately 70k, leaving 50k within the company account or kitty.
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ANNUAL COSTS:
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As alluded to above, the syndication will have approximately 50k in its bank account after the initial additions and alterations. At the discretion of the directors, these funds could be used to further increase the overall value and / or enjoyment of the property (fencing, stock, etc) or they could be used to cover the properties running costs.
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Estimated annual costs include:
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Rates $2080
Insurance $3000
R&M $9000
AssetShare $2880
Accounting $1000
TOTAL $17960
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While the retained funds could provide for this running cost, it would be prudent to budget for a minimum contribution of $1800 per share per annum in the case that it is required.
INCOME:
There is no immediate opportunity or directive to generate an income from the property. However due to the properties stunning landscape and views, and the fact that it is near tourist activity, there may be an opportunity to develop canopy camping or pure pods type accommodation unit(s). There are possible locations, that wouldn't materially affect other users and owners. Pure Pods is a partnership that doesn't require investment from the landowner. https://www.purepods.com/purepods-partner/
OWNERSHIP:
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Each 1/10th shareholding will own 10% of and become a Director of Deer Valley Estate Ltd. Deer Valleys Estate will own the land, the assets, the insurance policy and the company bank account. The company is governed by a Shareholders Agreement.
MANAGEMENT:
At the discretion of the owners / directors, AssetShare will use its software to manage the bookings system, calendar, maintenance logs, and use records for the Company at a cost of $24 per user per month ($2880 per annum @ 10 shares). Additionally, AssetShare is available to provide accounting, admin, taxation and R&M organisation services at an hourly rate if required.
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EXIT STRATEGY:
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The idea of the five year term is this gives everyone an end date. At the end of the term, the property will be sold with proceeds and retained cash being returning to the owners relevant to their shareholding. The method of sale is up to the Owners, and they may elect to sell to form another syndication with AssetShare.
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Individual shareholders can sell their shares at any time, using any method they prefer. Rules within the shareholders agreement make this an easy process. AssetShare can assist with any sale for a 3.75% plus costs fee.
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