Request for Consulting Advice

Guidance for management of a newly acquired property

Dear BProp & Company,

I am the Director of Big Money Property LLC. We manage a global investment fund on behalf of a private investor. We have a new mandate to invest in New Zealand properties, focusing on Auckland.

We have recently settled the purchase of our first property in New Zealand (refer Appendix 1).

The challenge we are encountering is that our global business is unfamiliar with the New Zealand property market, particularly in relation to the ongoing management of this property.

We request that you provide:

1. Report covering guidance on management of the property, focusing on practical steps to maximise returns, minimise risk and ensure compliance.

Please ensure that the work is focused on the property (Appendix 1) and draws reference to local case studies or examples so that we can see how the recommendations are applied in the real world in New Zealand.

We do not require any advice around the valuation, financing, marketing or long-term redevelopment of the properties. Please focus your advice on property management. My local investment manager, Jackson, is a busy professional so it is important that the guide is comprehensive, professionally presented, and easy to read.

I look forward to hearing from you.

Regards

Location	Normanby Road, Mount Eden, Auckland1
Property composition	40 apartments comprised: o10x 1 bed, 1 bath, 8 sqm balcony, 65 sqm internal. o20x 2 bed, 2 bath, 12 sqm balcony, 90 sqm internal. o10x 3 bed, 2 bath, 12 sqm balcony, 110 sqm internal. Two floors of commercial spaces (retail and office) totalling 2,000 sqm.55 car parks with 15 (total) leased by the commercial spaces.
Tenants / occupants	Commercial spaces are currently fully occupied on leases ranging 1-3 years duration plus 1x 3 year right of renewal. Unmodified ADLS Deeds of Lease have been used. Rent reviews have annual CPI indexing and market rent review on renewal. Tenants are small businesses of various types.Apartments are brand new and currently vacant / unoccupied.
Background	Property recently completed construction after long delays.Developer exercised sunset clauses to void the apartment sale contracts with the intention of reselling them at completion at higher prices.Developer subsequently fell into financial distress and the funders implemented a liquidation process resulting in the sale of the property.Big Money Property LLC subsequently purchased the property.The purchase recently settled so full ownership is now held.Building warranties remain in place with the original construction contractor which is still in operation.
Investment strategy	Retain ownership of the property long-term. In the short-term bring the building up to full occupancy.