There is the ability to undertake commercial property investment without all of the waste of capital that is associated with financial intermediaries. Investors should have the opportunity to achieve a sustainable and reasonable return without the associated risks of being leveraged.

Similar to leverage, our investment strategy allows us to lower our cost of funds from year three onwards by offering 5.0% p.a. distributions.
There is a sweet spot between mortgage finance rates, bank deposit rates, and commercial property yields where all of what would be debt expenses can be returned to investors as income.

Being bank-leveraged means vulnerability to short-term finance cycle risks. Predominantly commercial property loans are for short durations (2-3 years), and 81% of interest costs are calculated on maturities less than 1 year, with 51% being less than one month. This means, as the RBNZ is increasing interest rates, these affect interest rates and values immediately.

Highly leveraged investors will be consolidating their portfolios, leading to further buying opportunities.

Majority of New Zealand’s debt is held by off-shore banks and financial institutions which all represent a loss of GDP to the New Zealand economy.

The traditional investment model for most investors is to expense all of their income for negative gearing and sit in the market for long-term capital appreciation. Rather than waste all of our cash flow to the banking system, we will be recycling that to the New Zealand economy and value-adding opportunities for our property investments.

We understand that people's circumstances change over time, so we would like to create the opportunity for investors to potentially access their income on their investment after three years of investment.

Investors will have the choice to swap part or all of their investment to a 5.0% cash return rather than waiting until year 10 to get the full 7.0% compounding return.

The reason this is not offered from the commencement of the investment is to provide the ability to re-negotiate leases, re-capitalise into the income fundamentals of the properties and provide a cash buffer for vacancy risks, etc. throughout the life of the fund.

We have over 25 years’ experience in commercial property, valuing over $1.5 billion of assets annually that owners and major banks rely upon. Our analysis extends to all of the input values of the property equation including finance cycles, economic cycles, supply and demand, and the appreciable and depreciable qualities of property investment.

Working for the largest listed property companies and many high net-worth portfolio investors, we have observed best practices in the market and understand the variables that increase value over time. Our measured accuracy between our market values and sale prices (within 6 months) has been +/- 1% on average for the last 10 years that we have been conducting this analysis.

Ryan has experience in banking after the GFC, managing $180 million of commercial property loans which exhibits a high degree of responsibility and gives him intimate first-hand knowledge of how the banking sector works, how risk is managed, and how the bank plays out a downturn in the market.

Commercial properties, predominantly across the Auckland area, however, we would be considering opportunities throughout New Zealand.

Properties we consider to have the greatest potential are low management, industrial, and bulk retail properties with asset values of $10-$25 million. Based on our long-term data and analysis, these asset types are less subject to market volatility and provide strong returns and tenant profiles over time.

Properties with higher land content have the strongest long-term capital appreciation potential based on our market research.

We are bank debt-free, which means no finance nonsense or interest rate risk.

Traditional property investment structures (e.g. LPTs, Syndicates, Limited Partnerships) are focused on management fees that are usually charged annually based on funds under management. A 1.0% management fee, could represent 20% of the property's income annually.

We have built extensive models and databases to allow us to conduct fast due diligence on multiple opportunities in a short timeframe.

At this stage, Mates Invest is only taking expressions of interest from wholesale investors to facilitate the investment.

We are looking for 300-600 wholesale investors to be part of our first tranche. This will enable the fund to establish a strong asset base, creating future opportunities for further funds.

In the future we intend to create a retail fund for a wider community, if this is something you are interested in, subscribe to our newsletter to be the first to hear with this option becomes available.

There are no direct fees on investors return. All costs are incurred by the investment vehicle. No hidden fees.

Visit our ‘Investment Criteria’ page to see if you qualify, alternatively, speak with your trusted financial advisor to discuss your eligibility.

Mates Invest plans to facilitate a secondary market for investors to on-sell their investments. As forecast, deposit rates in the future will lower, making it possible to achieve a higher capital value for your investment than the accumulated cash value.

Alternatively, a default return of 3.5% will apply to the funds invested.

Property syndicates are usually established by parties who typically seek assets with a long lease term. This lets them secure finance against the assets to leverage investor returns. Very little consideration is given to the exit value of the property and investors can be left waiting for a new syndicator investor to buy their investment share in a secondary market.

When you invest with Mates Invest, you don’t have to worry about an individual investment property, or the value of your unit share in a secondary market. Mates Invest offers a more secure and sustainable investment model.

Mates Invest operates as a Portfolio Investment Entity (PIE) fund. Assets are not owned in a proportionate ownership structure and instead are owned in a holding company that investors have a right to return over.

Being a PIE structure means that our tax rate on returns is capped at 28%. As a result, you may end up paying less tax than you would in a different investment vehicle which has tax rates of up to 39%. For further information, register your interest to receive an Information Memorandum.

Listed Property Trusts (LPT) trade in the share market, which is often driven by fundamentals beyond property value and income. The share market can be a temperamental investment vehicle, subject to asset price fluctuations.

The market can be manipulated by margin traders, who use borrowed funds to take high-risk positions, which can result in the share market fluctuating wildly in response to interest rate changes.

As such, the share market can be highly volatile and sentiment-driven, with very little differential between investment types.
Mates Invest asset values are not subject to this volatile market sentiment, which usually discounts heavily debt-laden investment products.

Our forecast rate of return comprises of a mix of accumulated income and capital gains realised at the end of the fund term. If extraordinary gains are realised at the end of the fund, investors may receive a bonus payment at Mates Invest’s discretion

Our investment model is based on a diversified pool of properties, all located in the $7 million + category. A larger asset base is advantageous to our investors as it provides a more secure investment, reducing vacancy risk and property-related risk.

To secure a long-term funnel of investors that would replace the equity of the original investors. The vast majority of the distributions will come from accumulated income growth over the life of a fund. The intention of the fund is to continue indefinitely, after the initial investment period. Investors can choose to cash out at the end of the 10-year term or stay in the fund. If required to pay investors their returns, Mates Invest may sell down some or all commercial properties held, however, this is not our primary repayment method for investors. Returns are not solely reliant on capital growth which can fluctuate in any given time period

To secure a long-term funnel of investors that would replace the equity of the original investors. The vast majority of the distributions will come from accumulated income growth over the life of the fund. The intention of the fund is to continue indefinitely, after the initial investment period. Investors can choose to cash out at the end of the 10-year term or stay in the fund. If required to pay investors their returns, Mates Invest may sell down some or all commercial properties held, however, this is not our primary repayment method for investors. Returns are not solely reliant on capital growth which can fluctuate in any given time period. 

Your money is invested into land and buildings that have a defined utility value to the economy, expressed as a percentage return.

There is currently no retail deposit guarantee scheme in New Zealand, and therefore any money sitting in the bank is unsecured. Whilst there is a proposal under the Deposit Takers Bill to implement a scheme, it will only cover investors up to $100,000 per financial institution.