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Property Syndicates
Introduction
Equity Investment Advisers Ltd operate a market for
the purchase and sale of existing property syndications. This market
operates in a similar fashion to the New Zealand sharemarket. Investors
can buy and sell property syndication investments easily through this
market.
Secondary Market Operation
The market is open on all normal business days. Hours are from 9:30am to 4:30pm. Buyers and sellers register their interest with a client adviser.
With syndications, an investment statement describing the property lease details, yield and tenant, will be forwarded for your consideration.
A list is updated regularly of price bids (buyers) and price offers (sellers). The list contains which syndicates are available and their applicable prices.
When a trade is matched a contract note will be generated and sent to each party. If interest is due then this is automatically calculated and paid to the seller. This interest is called accrued interest. Contract notes will be sent to the buyer and the seller at the nominated price. Equity acts as the clearinghouse and will match all buyers and sellers as price dictates.
After a trade has been notified via client contract notes the sale will then proceed to the next stage. The buyer will pay the due amount and the seller will be remitted the due amount. The shares & mortgage bonds are then registered into the buyer's name.
The certificate is issued by the registry and normally takes two to
three weeks to be printed and posted. To obtain a list of current
secondary market prices, click here.
Requirements and Costs
Upon receiving a contract note the seller must sign the transfer form and send their share certificate(s) to Equity. The buyer upon receiving their contract note will deposit funds into the Secondary Market Trust Account to effect payment. We normally require the buyer and seller to complete their part of the transaction within five working days. The buyers and sellers are charged a brokerage fee and a trade fee to cover secondary market operation costs incurred by Equity. The brokerage is 1.5% and the trade fee $15.
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