Williams Corporation Capital Partnership LP

Investment Criteria

Investment in Williams Corporation Capital Partnership LP is only open to eligible and wholesale investors. This investment opportunity is not available to retail investors.

The minimum investment of $100,000 is required. Exclusions apply.

Eligible Investors

An eligible investor is an individual who certifies that they have previous experience with acquiring and disposing of financial products that allows the investor to assess:

  • the merits of an investment in the LP (including assessing the value and the risks of Partnership Units);
  • the investor’s own information needs in relation to the investment; and
  • the adequacy of the information provided to the investor by any person in connection with the investment.

The relevant previous experience must relate to “financial products”. The full definition of “financial product” is set out in section 8 of the Financial Markets Conduct Act 2013. For a summary click here.

Wholesale Investors

A wholesale investor is a person who meets one of the criteria set out in clauses 3(2) and 3(3)(b) of Schedule 1 of the Financial Markets Conduct Act

For more information, please refer to the Application Form or request further information from one of Williams Corporation’s Property Consultants.

How it Works

What is Williams Corporation Capital Partnership LP?

Williams Corporation Capital Partnership LP has been created to provide a secure pipeline of funding to Williams Corporation. This funding allows Williams Corporation to continue to build centrally located homes that are affordable to buy, affordable to live in, and affordable to maintain for New Zealanders.

Williams Corporation Capital Partnership LP then provides its investors a pre-tax 10% per annum return, with a distribution paid quarterly. Williams Corporation Capital Partnership LP is secured by extensive property and cash security with funds held by Lane Neave.

Williams Corporation Team

The directors, Matthew Horncastle, and Blair Chappell come from strong property families. They have owned and operated businesses for 10 years and have been successful property developers for over 8 years.

Kathryn Marshall, the General Manager, has been a successful residential property developer for over 30 years, and uses her extensive experience to guide the company.

The Williams Corporation team consists of in house accountants, architects, project managers and property consultants and a wider network of external builders and plumbers who are all industry leaders. Their skills are showcased by their proven record of success and market domination.

Williams Corporation Capital is a Wholesale Finance Company.

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Williams Corporation Capital Partnership LP Lending Policy

The GP wanted to create the best available security possible for the LP. The LP can only lend funds to a Williams Corporation Group Company.

Operating Rules

  • Before construction begins, presales must total at least 70% of the project value.
  • When funding a project, the funding total from the LP and any other bank or lender(s) will not exceed 70% of the completed project valuation for the development.
  • A standardised draw down table will be created before project funding is released.
  • Investor funds will only be used to fund acquisitions of sites for developments and/or funding ongoing developments.

Project Security

  • The GP will always ensure that the best available security for the LP’s direct lending. This may include the following:
  • When funding a project before land settlement, a deed of assignment of the pre-sales and other key contracts (either on project commencement or after those assignments are released by the primary funder, if any). This means if Williams Corporation Limited or one of its trading companies who is doing the development is in default, the project can be settled into the LP so equity is protected;
  • Alternatively, when funding a project after land settlement, a first mortgage security will be in place where there is no primary funder or, where there is a primary funder, then after the primary funder’s first mortgage is discharged; and
  • If there is a primary funder, the LP will have a second mortgage security, with a primary funder taking first mortgage security and assignment of key contracts. This may be a third mortgage, if there are two primary funders but this is capped at 70% of the project value.

Return

10% return chart

Your return will be 10% per annum gross*.

You will receive quarterly net-tax-paid distributions which will be a combination of income from the following sources:

  • Dividend income (where the LP has invested directly in Williams Corporation Capital)
  • Interest income (where the LP has made direct loans to Williams Corporation Group Companies)

Notes:

  • The combination of dividend and interest income will be entirely dependent on the proportion of LP investment in Williams Corporation Capital and loans to Williams Corporation Group Companies.
  • Dividend income: will be paid at 7.2% pa with fully imputed imputation credits attached at 28.0% (assuming the LP obtains an Exemption from RWT on interest and dividends)
  • Interest income: will be paid at 10.0% pa with no resident withholding tax credits (assuming the LP obtains an Exemption from RWT on interest and dividends)
  • You will need to pay and account for tax on your net distributions from the LP, after allowing for tax credits.
  • The LP will accept NZ tax residents as Limited Partners only.
  • The LP will accept NZ tax residents as Limited Partners only. The return and tax implications may be significantly different for non-tax residents.

Governance

Governance

Investors are being offered the opportunity to invest in the Williams Corporation Capital Partnership LP by becoming limited partners with partnership units in the LP. Partnership units entitle the limited partners to a share in the distributions of the LP, which are fixed for the first two years of the LP as a gross 10% per annum cash distribution. Your participation in the LP will be governed by the limited partnership agreement and the Limited Partnerships Act 2008.

The general partner of the LP is Williams Corporation Capital Partnership GP Limited (the GP). The GP is responsible for the management and control of the LP’s business, including all credit decisions of the LP. The directors of the GP are Matthew Horncastle and Blair Chappell.

Governance is extremely important to the GP and to Williams Corporation. Matthew Horncastle and Blair Chappell are experienced directors of property companies and will govern the LP under strict operating procedures.

Investors’ funds will be kept in Lane Neave’s trust account, acting on behalf of the LP. Lane Neave will only release investors’ funds when all the correct steps and securities have been taken and are in place.

*The gross distribution rate of 10%pa is fixed for the first two years of the LP. Thereafter, the distribution rate will be fixed by the general partner and may be subject to change.

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For further information, please refer to the information memorandum (which is available on request). Ask questions, read all documents carefully, and seek independent financial advice before committing yourself to this investment.

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