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Provincia is a long-term investment to be held as a part of your overall investment portfolio. However, if there is a need to sell your shares Provincia is listed on the Syndex secondary market, where you can list your shares to sell.
For more information, please visit Syndex.
Wholesale investors are generally experienced investors that have enough knowledge to understand the specific investment they are investing in. If you are very experienced in investing or have brought and sold financial products like shares or bonds you may qualify. Our application form has a questionnaire that covers Wholesale investor qualification, so the best way to find our if you are Wholesale is to apply. The Wholesale Investor rules are covered in Clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013.
Provincia will consider this option when the fund is big enough to make it economical to list and that it would be beneficial for the shareholders to list. The fund would have to be about twice the size ($200 million property value) to make it viable, and shareholders would have to agree to the listing.
Provincia is an open-ended single fund which means we are continuously raising equity and adding new properties.
Provincia is a limited liability company with the company owning the properties and shareholders owning the shares in the company. It is a simple structure designed to give shareholders as close to direct ownership of the properties, with most of the benefits.
There are three directors of the fund, two elected by the shareholders and one from the manager of the fund. The manager of the fund is Provincia Property Fund Management Limited.
The minimum investment is $50,000 providing the Wholesale Investor criteria is met by the investor.
The properties are revalued every year then the new share price is calculated by dividing the total equity (assets less liabilities) by the number of shares on issue.
Each quarter the operating profit is calculated and distributed proportionally to shareholders.
Dividends are distributed quarterly based on a financial accounting year finishing 31 March.
The WALT is the Weighted Average Lease Term of all the leases in the fund, generally it is a measure of risk for commercial property investment. If there is a short WALT of say 1 year it means that all lease terms would expire in 1 year if they are not renewed, so quite risky. Conversely if the WALT was 10 years it would mean in 10 years all leases would have expired if they haven’t been renewed, so quite secure. A short WALT can however be an opportunity to negotiate better lease terms and higher rents, adding considerable value to a property.
All of Provincia’s properties are industrial with a majority of the tenants being businesses which are vital to the New Zealand economy. The properties are all in high demand areas so if there is a change in tenant there is always another ready to shift in. Since Provincias inception in November 2017 we have had 100% occupancy in the buildings.
Provincia’s strategy is to own a diversified portfolio of value-add properties in the markets outperforming industrial sector, to provide long-term competitive income and capital gains to shareholders.
The Total Return is the combination of the cash dividend return and the capital gain of the share price.
Yes Provincia can borrow up to 45% of the value of the properties, currently the loan to value ratio is 40% (at 1 February 2023).
There currently are 139 shareholders (as at 17 February 2023).
Yes there is, you can opt in or out at any time.
Provincia is a PIE (Portfolio Investment Entity) fund. This means the fund pays tax on your share of the funds taxable income at your Prescribed Investor Rate (PIR). Provincia pays the tax on your behalf and you do not normally have to pay any further tax.
Yes the directors and fund manager collectively hold 12% (as at 31 March 2022) of the shares in Provincia.