Howard Street Limited

By Opoly Limited

PledgeMe.Investment

Property,



NZ $198,300 pledged


91 people pledged


1 month left


NZ $727,200 minimum target


Min

NZ$727,200

Max

NZ$727,200

27 27% Complete

Pledges will only be confirmed if the target is reached by: 15/09/2022 at 5:00 PM (NZST)

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About

Howard Street Limited

Letter from the Director

The team at Opoly are property professionals. We love property and we are on a mission to make investing in property easy and accessible to everyone from $100! By crowdfunding properties Opoly gives you a chance to get on the property ownership ladder.

Howard Street Limited’s (HSL) investment offering to acquire Unit 3/42 Howard Street, Spreydon, Christchurch intends to provide Shareholders with regular, passive income from rental returns and possible capital appreciation over time. If HSL is able to achieve a gain on sale of the property, then each investor will also receive a share of that gain.

To facilitate the proposed acquisition, HSL seeks to raise $727,200 of equity.

The Information Memorandum contains important information about the Offer, and I encourage you to read it carefully and seek advice from a financial advisor before making an investment decision. As always, we are here to answer any questions you might have about the Offer.

 

Steve Brooks 

Director

Key Terms of Offer

What is the offer:  This is an offer for Shares in Howard Street Limited, an Opoly Holding Company which intends to acquire an individual residential property. Each Share represents an equal interest in HSL and ranks equally in all respects with any other Shares on issue in HSL.

Product on Offer: Ordinary Voting Shares in HSL

Offer Opens: 20 July 2022

Offer Close Date: 15 September 2022 or earlier if the Minimum amount is raised.

Total Shares on Offer: 7272 Ordinary Voting Shares

Price per Share: $100 NZD

Minimum and Maximum: The minimum investment is $100 NZD with only multiples of $100 NZD thereafter. No investor entity may hold over 20.00% of the proposed post-issue total number of shares. For the purposes of this Offer, the maximum investment is $145,440 NZD.

Minimum Investment Target: $727,200 (for 100% of the company)

Proposed Shareholder vote: HSL will call a shareholder vote 5 years after the Offer Close date to decide whether to sell the Property. A majority of 75% of returned shareholder votes is required to decide to sell the Property. If the Property is not sold HSL’s constitution provides for there to be further shareholder votes each subsequent 12 months to reconsider the ongoing holding or disposal of the Property.

Maximum Investment Target:  $727,200 (for 100% of the company)

Forecasted Returns: Forecasted 7.4%* average return p.a. over 5 years (subject to sale at year 5). These forecasted returns are not guaranteed.

 

The Company

HSL has been established with the purpose of purchasing 3/42 Howard Street, Spreydon, Christchurch. The goal of HSL is to deliver Shareholders regular, passive income, and capital appreciation over time. The strategic investment objectives will be:

     - Ensure rental revenue is maximised through high occupancy and rental rate.

     - Achieve capital gains at the point of disposing of the underlying asset.

 HSL currently does not have any assets, liabilities or shareholder equity. The pre offer and post offer balance sheet below.

Balance Sheet

Pre Offer

Post Offer

Assets    
Current Assets $0 $0
Cash/ Bank Balance $0 $0
Non Current Assets $0 $0
Property & Equipment $0 $720,000
Liabilities    
Current Liabilities $0 $0
Non Current Liabilities $0 $0
Balance $0 $720,000
Equity    
Common Stock $0 $720,000
Accumulated Deficit $0 $7200
Total Owners Equity $0 $727,200
Balance $0 $720,000

 

Key Risks

Timing of exit

The timing of selling the Property is dependent on 75% of returned shareholders voting to sell the Property after the initial 5-year term has been reached. If the Property is retained post shareholder vote HSL’s company constitution provides for further shareholder votes each subsequent 12 months to reconsider the sale of the property.

Uncertainty of exit

Selling a property is uncertain and there is no guarantee that there will be willing purchasers or that a gain on sale will be achieved when the Property is sold. The gain on sale Opoly intends to facilitate to HSL investors, is entirely dependent on the property market and the presence of willing purchasers at the proposed time of sale and the price they are willing to pay.

Defects and deterioration

During the holding period, key risks are defects, deterioration, and damage caused by general wear and tear, as well as possible damages caused by tenants. This means that the Property value may be adversely affected. However, mitigating these risks the Property will be insured at all times and a bond will be held by the New Zealand Tenancy Services.

Decrease in rental income

During the holding period the Manager will endeavour to rent the Property at the highest possible amount while ensuring the Property achieves maximum occupancy. This is dependent on the ability of the Property Manager and the demand of the rental market. If the Manager does not perform to required standards, there is a risk of potentially lower returns or even an operating deficit (rental received not covering expenses).

 

 

The Manager

HSL has engaged Opoly Limited (the Manager) to assist with the crowdfunding campaign, and to provide operational management and company secretarial services. Opoly Limited is made up of property experts whose passion is property.

 

Steve Brooks: Director and Shareholder

Steve has been involved in property from a young age, at the age of 14, Steve became the youngest real estate agent in New Zealand.

After buying his first investment property at age 16, by the age of 18, Steve had built up a portfolio of investment properties and moved into property development. He then spent the next two years building and selling properties throughout the country. In the wake of the 2008 Global Financial Crisis, Steve took a hiatus from property to pursue other business opportunities, including creating one of the first tax refund companies in New Zealand.

Following the Christchurch earthquake in 2011, Steve took the opportunity to start purchasing ‘as is where is’ properties and, over the next few years, built up an impressive commercial portfolio, along with continuing to build his residential property portfolio. Steve is a Director of Wolfbrook Property Group of one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

 

James Cooney:  Director and Shareholder

In 2009, after graduating from Lincoln University with a BCom VPM (Valuation and Property Management) degree, James began his professional career working at Simes (now Bayleys/KnightFrank) as a commercial property agent.

Following the Christchurch earthquake in 2011, James sold three sites to developers, of which he then presold over thirty million dollars in new industrial units. Over the following 18-months, James also began trading and selling in what would become known as the ‘as is where is market’.

James is a Director of Wolfbrook Property Group, one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

 

Guy Randall: Chief Executive Officer

Guy grew up in a family with a background in finance and commerce but quickly found success in another industry; hospitality. Having owned some of the most awarded hospitality venues from the young age of 23, Guy made his way back towards finance in 2009 co-founding a pioneering finance business the same year.

More recently Guy has held Executive roles in finance and property development firms and is currently Chief Executive Officer of Wolfbrook Property Group, one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

 

Warning Statement

This document has been prepared by Howard Street Limited (HSL). The purpose of this document is in relation to the HSL share offer on PledgeMe. PledgeMe is licenced and regulated by the Financial Markets Authority, and this public share offer made by HSL will only be available through the PledgeMe website.

Warning statement about crowdfunding

Equity crowdfunding is risky. Issuers (companies issuing shares) using PledgeMe’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.

You may lose your entire investment and must be in a position to bear this risk without undue hardship. New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

The usual rules do not apply to offers by issuers using PledgeMe to raise funds. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

Forward-Looking Statements

This Information Memorandum contains certain forward-looking statements. A forward-looking statement is a statement that does not relate to historical facts and events. The forward-looking statements are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. These statements appear in a number of places in this Information Memorandum and include statements regarding BRL’s intent, belief or current expectations with respect to BRL’s financial position, business strategies, plans and prospects and future prospects of the industry.

In many cases, but not all, forward-looking statements can be identified by forward-looking terms such as “aim”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “might”, “outlook”, “plan”, “possibility”, “potential”, “probably”, “project”, “risk”, “seek”, “should”, “target”, “will” and other such similar terms. These forward-looking statements are based on current estimates, assumptions and the like that HSL makes to the best of its present knowledge and are subject to risks, uncertainties and such assumptions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, BRL’s actual results may vary materially from those forward-looking statements. Potential risks and uncertainties include, but are not limited to, those outlined under Key Risks.

Information in this Information Memorandum

The information contained in this Information Memorandum is general in nature and does not contain all of the information that a prospective investor may require to evaluate a decision to invest in the proposed investment and the risks associated with such investment.

 This Information Memorandum has been prepared without any actual or prior knowledge or consideration of the investment objectives, financial situation, taxation position or other particular needs or requirements of any prospective investor.

This Information Memorandum has been prepared in good faith but the information contained within it has not been independently verified.

No Warranties

No representation or warranty is given by any person as to the accuracy, completeness or reliability of any statements, estimates, opinions, assumptions or other information contained in this Information Memorandum. In particular no such representation or warranty is given by any of HSL, Opoly Limited, any entity associated with either of them or any of their respective shareholders, directors, employees or advisers.

Information Memorandum does not constitute financial advice

Nothing in this information constitutes legal, tax or financial advice. Prospective investors should seek their own professional advice on the consequences of investing under the offer.

A Note from PledgeMe

We have completed IQ Connect checks on Opoly Limited and Howard Street Limited, and their Directors, as well as Google and Insolvency checks. There were no adverse findings. 

Updates 3

Is Christchurch New Zealand's next super city?

09/08/2022 at 12:35 PM

The Team at Opoly love property and we may be a bit biased, but we love Christchurch too!

Check out this great series of articles that The Herald recently ran on why Christchurch just might be New Zealand's next super city.

https://www.nzherald.co.nz/nz/is-christchurch-nzs-next-super-city-new-herald-series-on-the-future-of-christchurch/KRVMC7T6CHMMYNFO7TEDVPK7NA/

For your chance to get on the property ladder and  invest in Christchurch property, download the information memorandum now!

 

We are more than 25% raised!

06/08/2022 at 4:57 PM

We are super stoked to well on the way to a successful raise. 

Thanks to everyoine that has invested so far- Lets keep it going- share Opoly far and wide and lets get more Kiwis on the propoerty investment ladder.

 

Team Opoly.

Lets take a closer look at Howard Street!

25/07/2022 at 3:59 PM

Join Opoly Director Steve Brooks as he takes a quick tour through 3/42 Howard Street and talks further about this crowdfunding opportunity to get on the property ladder.

    Details

    Offer Details

    Current Valuation 100
    Raise Minimum 727,200
    Raise Maximum 727,200
    Share Price 100.00
    Minimum Pledge 100.00
    Maximum Shares Offered 7,272
    Explanation of valuation:

    Howard Street Limited currently does not have any assets, liabilities or shareholder equity. The company will only purchase the underlying asset 3/42 Howard Street if a successful capital raise has been completed.

    Financial Summary

    Prev Year Current Year Est. FY 2024 Est. FY 2025
    Revenue NZ $0 NZ $0 NZ $0 NZ $0
    Operating Expenses NZ $0 NZ $0 NZ $0 NZ $0
    EBITDA NZ $0 NZ $0 NZ $0 NZ $0
    Net Profit NZ $0 NZ $0 NZ $0 NZ $0

    Company Details

    Company Name: Howard Street Limited

    Company Number: 8374372

    Company Documents

    Howard_Street_Limted_-_Information_Memorandum.pdf

    (application/pdf, 2.06 MB, uploaded 20 July 2022)

    Management_Agreement_-_Signed.pdf

    (application/pdf, 395 KB, uploaded 20 July 2022)

    HSL_Subscription_Agreement_-_Signed.pdf

    (application/pdf, 203 KB, uploaded 19 July 2022)

    Howard_Street_Limited_Constitution.pdf

    (application/pdf, 249 KB, uploaded 19 July 2022)

    CoyExtract_8374372_04July2022_HOWARD_STREET_Ltd.pdf

    (application/pdf, 392 KB, uploaded 13 July 2022)

    CoyExtract_8325233_04July2022OPOLY.pdf

    (application/pdf, 745 KB, uploaded 13 July 2022)

    CertIncorporation_8325233_04July2022_OPOLY.pdf

    (application/pdf, 588 KB, uploaded 13 July 2022)

    CertIncorporation_8374372_04July2022_HOWARD_STREET_LTD.pdf

    (application/pdf, 589 KB, uploaded 13 July 2022)

    Director Details

    Name Role Profile URL Invested?
    Steve Cavell Brooks Managing Director https://www.linkedin.com/in/steve-brooks-53362b31/
    James Owen Cooney Director https://www.linkedin.com/in/james-cooney-446276150/

    Questions 10

    Ask a Question (You must login to ask a question)


    The 75% threshold for selling the property seems awfully high? given what will be a relatively small secondary market for these shares - particularly if it was a down market. Shouldn't it have a fixed end date, and require a 75% vote to keep it beyond the fixed time frame.

    Posted on 02-08-2022 by Adrian Edge

    Hi Opoly,

    Thanks the previous response. I actually have been working in the development industry for well over 15 years. I understand you have sensitive information but I always tell my investors and purchasers how much I as the developer am making on my builds.

    It definitely helps with getting clients and building transparency.

    Would you reconsider sharing the information on your build mark-up as I struggle to see how this is information that should be kept away from investors?

    They would typically be made aware of this information if they were buying the total build directly from a developer, as opposed to investing in crowdfunded shares of a build.

    Thanks,

    Mike

    Posted on 29-07-2022 by Michael Benson

    Hi Opoly/Wolfbrook,

    How much will Wolfbrook be making as a company on the build?

    What is the mark-up for this Wolfbrook development (i.e; land, subdivision, building process, and materials) ?

    How can we be confident as investors if it costs you $200,000 for the land, $200,000 for the build and you're making $300,000+ selling it to Opoly crowdfund investors?

    Please can you clarify the numbers on Wolfbrook's side.

    Thanks,

    Michael

    Posted on 29-07-2022 by Michael Benson

    Hi Michael,

    Thanks for questions and more than happy to help clarify (where possible) your concerns that also help other potential investors.

    This is not a Wolfbrook offer and as such it would be inappropriate to comment on commercially sensitive information of another company. Opoly intends to market other builder/developers properties and we will not be disclosing their commercially sensitive information either. Opoly is not a platform to sell exclusively Wolfbrook houses, it is a platform to get everyday New Zealanders onto the property ladder and investing into real estate.

    However, a couple of points on your comments above that highlight that the margin you are suggesting is significantly incorrect.
    1. You have failed to account for GST of $93,000 of the sale price;
    2. The build cost you have stated is wildly incorrect- a developer cannot build a house of this size and quality for your suggested cost.

    Michael, builders/ developers make margin which is charged to all purchasers. The fact that the purchaser of this property is a crowdfund is no different.

    I hope this helps with your concerns.

    Answered on 29-07-2022 by Opoly Limited


    Did Opoly entertain purchasing a property from an unassociated entity?
    Has Opoly considered outsourcing the property to one of the many unassociated entities, that offer property management services? some of which offer significantly cheaper services.
    There is a signficant financial incentive for Wolfbrook (who own Opoly) to sell that property. How can an investor be confident, that there is no conflict here?

    Posted on 28-07-2022 by Adrian Edge

    Hi Adrian,

    Thanks for your questions/ comments.

    Opoly will in the future facilitate properties purchased from other developers. But, for the first "new" Opoly raise it was important to secure a property where construction was complete and where we could get a conditional sale & purchase agreement for the time required to achieve a successful crowdfund raise.

    Opoly as Manager will choose a Property Manager that is the best fit for the property, this includes price. Our chosen property manager charges some of the lowest prices in Christchurch and more importantly manages this type of property daily.

    Wolfbrook sold over 300 properties in the last 12 months. One property is not a significant financial incentive. Related parties and their relationship are clearly disclosed in the Information Memorandum.

    Answered on 28-07-2022 by Opoly Limited


    Hello, the 75% majority shareholders. Does this mean that a person with more shares has a greater voting power. For example, if I hold 100 shares. Is my voting power 100 times more than a person who bought 1 share?
    Thank you

    Posted on 23-07-2022 by Omar

    Hi Omar,

    Thanks for your question.

    There is only 1 class of shares and each share carries the same right (and voting power). So, yes, a shareholder with 100 shares carries 100 votes vs a shareholder who owns 1 share and has 1 vote.

    Hope this helps.

    Answered on 23-07-2022 by Opoly Limited


    Hi
    The related parties section of the Information Memorandum discloses the associations between the parties, but it does not disclose how the conflicts of interest will be dealt with. Is there a limit to the management fees Wolfbrook Property and Opoly can charge Howard Street Ltd?
    If the company is going to be completely owned by crowdfunders, who involved in management of the company will have an incentive/responsibilty to get the best returns possible for the investors?
    Thanks

    Posted on 22-07-2022 by Kelly Duffy

    Can you please fully disclose the association with Wolfbrook? At first glance there appears to be a significant Conflict of Interest, from the purchase of the property, through to the management of the property.

    Posted on 21-07-2022 by Adrian Edge

    Hi Adrian,

    Please download the Information Memorandum where all conflicts of interest are clearly stated- these do include Wolfbrook Residential and Wolfbrook Property Management.

    Best.

    Answered on 21-07-2022 by Opoly Limited


    Can you please confirm that Felix Watkins, and Issac Willams are no longer related parties?

    Posted on 21-07-2022 by Adrian Edge

    Hi Adrian,

    Yes, I can confirm Felix Watkins, and Issac Willams are not related parties, Directors or Shareholders of Howard Street Limited or Opoly Limited.

    Let me know if you would like further information on this or anything else.

    Best.

    Answered on 21-07-2022 by Opoly Limited


    Hi Opoly,

    Can you please provide a more up to date / CURRENT valuation report?

    The one provided is dated March 2022.

    That doesn’t give us much colour on where this units valuation sits in the current economic climate.

    - historically high inflation of 7.3%
    - rising interest rates
    - TradeMe seeing the largest monthly drop on record in house prices.

    https://www.stuff.co.nz/life-style/homed/real-estate/129312662/nz-property-prices-have-the-largest-monthly-drop-on-record-trade-me

    What is the estimated growth rate for this 2 bedroom unit?
    Will you be adjusting your forecasts if we continue to see dropping property prices month over month?

    Good idea – but sounds like the timing couldn’t have been worse.

    All the best,

    MB

    Posted on 21-07-2022 by Michael Benson

    Hi Michael,

    Apologies on the delayed response- heaps going on here at Opoly!

    The Collins Taggert valuation provided was commissioned for the originally scheduled relaunch date of Opoly. We are comfortable that its still provides an accurate baseline for the long-term capital growth of this particular property.

    REINZ Monthly Report June 2022 shows Christchurch bucked the nationwide trend with an increase of 1.7% month on month for June.

    We have adopted the below forecast capital growth for the for 5 year “hold” term of this property.
    Year 1 Year 2 Year 3 Year 4 Year 5
    Percentage Growth 3.5% 4.0% 4.5% 6.5% 7.0%

    3/42 Howard Street, unlike most two-bedroom townhouses recently built, has a garage, is in a boutique development of only 4 townhouses in a quiet city fringe location- in short this is a good property that we believe will more likely achieve capital growth over the long term.

    We believe Christchurch is going to offer better than average capital gains over the next 5 years (and further into the future) as the market is currently under priced relative to other major cities.

    https://www.nzherald.co.nz/nz/its-the-prices-young-professionals-ditch-auckland-and-wellington-for-christchurchs-cheaper-houses/JXHX2LLF7HHFTPB6T4SBRCLYJQ/

    Hope this helps.

    Thanks for your support.

    Answered on 25-07-2022 by Opoly Limited


    What is the purchase price if the Howard Street property

    Posted on 20-07-2022 by Daniel E

    Hi Daniel,

    Thanks for your question.

    The property is $720,000 of the total raise of $727,200.

    Let us know if you have any further questions.

    Answered on 20-07-2022 by Opoly Limited

    Pledgers 91

    Nadine Martin
    2022-08-10 14:27:41 +1200
    Jeff Situ
    2022-08-07 23:01:52 +1200
    Celine Lin
    2022-08-07 22:59:10 +1200
    Laurel Maberly
    2022-08-07 15:36:11 +1200
    Phillipa Reed
    2022-08-06 16:13:10 +1200
    John H
    2022-08-05 09:45:04 +1200
    Geoff Tobeck
    2022-08-04 09:50:21 +1200
    Bevan
    2022-08-03 20:20:42 +1200
    clayton Sinclair Lund
    2022-08-03 20:11:59 +1200
    Trish Vickers
    2022-08-03 19:34:40 +1200
    Vimal
    2022-08-03 17:47:28 +1200
    Graham L Dawson
    2022-08-03 17:42:02 +1200
    Sheena veal
    2022-08-03 17:36:16 +1200
    Jordan Palmer
    2022-08-03 15:40:10 +1200
    T Williams
    2022-08-03 09:55:10 +1200
    Rory
    2022-08-02 10:44:52 +1200
    Benedict Casey
    2022-08-02 08:33:43 +1200

    "I am a proud wolfbrook employee"

    Brian Lacey
    2022-08-01 21:47:48 +1200

    "Investment to be held in company name"

    Andy Jameson
    2022-08-01 20:23:35 +1200
    Frida Sumardjo
    2022-08-01 19:29:48 +1200
    Lucan Campbell
    2022-08-01 18:48:55 +1200
    Marisa Trevena
    2022-08-01 18:48:53 +1200
    Anton Wee
    2022-08-01 18:39:07 +1200
    Jana Harrison
    2022-08-01 18:30:51 +1200
    Francis Caluya
    2022-08-01 18:15:24 +1200
    Caroline
    2022-08-01 18:13:47 +1200
    Cory Tito
    2022-08-01 18:02:00 +1200
    Tracey Mackay
    2022-08-01 18:01:07 +1200
    Jayden
    2022-08-01 17:47:34 +1200
    [email protected]
    2022-07-30 15:21:55 +1200

    Howard Street Limited

    Letter from the Director

    The team at Opoly are property professionals. We love property and we are on a mission to make investing in property easy and accessible to everyone from $100! By crowdfunding properties Opoly gives you a chance to get on the property ownership ladder.

    Howard Street Limited’s (HSL) investment offering to acquire Unit 3/42 Howard Street, Spreydon, Christchurch intends to provide Shareholders with regular, passive income from rental returns and possible capital appreciation over time. If HSL is able to achieve a gain on sale of the property, then each investor will also receive a share of that gain.

    To facilitate the proposed acquisition, HSL seeks to raise $727,200 of equity.

    The Information Memorandum contains important information about the Offer, and I encourage you to read it carefully and seek advice from a financial advisor before making an investment decision. As always, we are here to answer any questions you might have about the Offer.

     

    Steve Brooks 

    Director

    Key Terms of Offer

    What is the offer:  This is an offer for Shares in Howard Street Limited, an Opoly Holding Company which intends to acquire an individual residential property. Each Share represents an equal interest in HSL and ranks equally in all respects with any other Shares on issue in HSL.

    Product on Offer: Ordinary Voting Shares in HSL

    Offer Opens: 20 July 2022

    Offer Close Date: 15 September 2022 or earlier if the Minimum amount is raised.

    Total Shares on Offer: 7272 Ordinary Voting Shares

    Price per Share: $100 NZD

    Minimum and Maximum: The minimum investment is $100 NZD with only multiples of $100 NZD thereafter. No investor entity may hold over 20.00% of the proposed post-issue total number of shares. For the purposes of this Offer, the maximum investment is $145,440 NZD.

    Minimum Investment Target: $727,200 (for 100% of the company)

    Proposed Shareholder vote: HSL will call a shareholder vote 5 years after the Offer Close date to decide whether to sell the Property. A majority of 75% of returned shareholder votes is required to decide to sell the Property. If the Property is not sold HSL’s constitution provides for there to be further shareholder votes each subsequent 12 months to reconsider the ongoing holding or disposal of the Property.

    Maximum Investment Target:  $727,200 (for 100% of the company)

    Forecasted Returns: Forecasted 7.4%* average return p.a. over 5 years (subject to sale at year 5). These forecasted returns are not guaranteed.

     

    The Company

    HSL has been established with the purpose of purchasing 3/42 Howard Street, Spreydon, Christchurch. The goal of HSL is to deliver Shareholders regular, passive income, and capital appreciation over time. The strategic investment objectives will be:

         - Ensure rental revenue is maximised through high occupancy and rental rate.

         - Achieve capital gains at the point of disposing of the underlying asset.

     HSL currently does not have any assets, liabilities or shareholder equity. The pre offer and post offer balance sheet below.

    Balance Sheet

    Pre Offer

    Post Offer

    Assets    
    Current Assets $0 $0
    Cash/ Bank Balance $0 $0
    Non Current Assets $0 $0
    Property & Equipment $0 $720,000
    Liabilities    
    Current Liabilities $0 $0
    Non Current Liabilities $0 $0
    Balance $0 $720,000
    Equity    
    Common Stock $0 $720,000
    Accumulated Deficit $0 $7200
    Total Owners Equity $0 $727,200
    Balance $0 $720,000

     

    Key Risks

    Timing of exit

    The timing of selling the Property is dependent on 75% of returned shareholders voting to sell the Property after the initial 5-year term has been reached. If the Property is retained post shareholder vote HSL’s company constitution provides for further shareholder votes each subsequent 12 months to reconsider the sale of the property.

    Uncertainty of exit

    Selling a property is uncertain and there is no guarantee that there will be willing purchasers or that a gain on sale will be achieved when the Property is sold. The gain on sale Opoly intends to facilitate to HSL investors, is entirely dependent on the property market and the presence of willing purchasers at the proposed time of sale and the price they are willing to pay.

    Defects and deterioration

    During the holding period, key risks are defects, deterioration, and damage caused by general wear and tear, as well as possible damages caused by tenants. This means that the Property value may be adversely affected. However, mitigating these risks the Property will be insured at all times and a bond will be held by the New Zealand Tenancy Services.

    Decrease in rental income

    During the holding period the Manager will endeavour to rent the Property at the highest possible amount while ensuring the Property achieves maximum occupancy. This is dependent on the ability of the Property Manager and the demand of the rental market. If the Manager does not perform to required standards, there is a risk of potentially lower returns or even an operating deficit (rental received not covering expenses).

     

     

    The Manager

    HSL has engaged Opoly Limited (the Manager) to assist with the crowdfunding campaign, and to provide operational management and company secretarial services. Opoly Limited is made up of property experts whose passion is property.

     

    Steve Brooks: Director and Shareholder

    Steve has been involved in property from a young age, at the age of 14, Steve became the youngest real estate agent in New Zealand.

    After buying his first investment property at age 16, by the age of 18, Steve had built up a portfolio of investment properties and moved into property development. He then spent the next two years building and selling properties throughout the country. In the wake of the 2008 Global Financial Crisis, Steve took a hiatus from property to pursue other business opportunities, including creating one of the first tax refund companies in New Zealand.

    Following the Christchurch earthquake in 2011, Steve took the opportunity to start purchasing ‘as is where is’ properties and, over the next few years, built up an impressive commercial portfolio, along with continuing to build his residential property portfolio. Steve is a Director of Wolfbrook Property Group of one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

     

    James Cooney:  Director and Shareholder

    In 2009, after graduating from Lincoln University with a BCom VPM (Valuation and Property Management) degree, James began his professional career working at Simes (now Bayleys/KnightFrank) as a commercial property agent.

    Following the Christchurch earthquake in 2011, James sold three sites to developers, of which he then presold over thirty million dollars in new industrial units. Over the following 18-months, James also began trading and selling in what would become known as the ‘as is where is market’.

    James is a Director of Wolfbrook Property Group, one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

     

    Guy Randall: Chief Executive Officer

    Guy grew up in a family with a background in finance and commerce but quickly found success in another industry; hospitality. Having owned some of the most awarded hospitality venues from the young age of 23, Guy made his way back towards finance in 2009 co-founding a pioneering finance business the same year.

    More recently Guy has held Executive roles in finance and property development firms and is currently Chief Executive Officer of Wolfbrook Property Group, one of New Zealand’s largest residential property developers. Additionally, Wolfbrook has business divisions in Property Management, Acquisition & Trading, and operates Wolfbrook Capital.

     

    Warning Statement

    This document has been prepared by Howard Street Limited (HSL). The purpose of this document is in relation to the HSL share offer on PledgeMe. PledgeMe is licenced and regulated by the Financial Markets Authority, and this public share offer made by HSL will only be available through the PledgeMe website.

    Warning statement about crowdfunding

    Equity crowdfunding is risky. Issuers (companies issuing shares) using PledgeMe’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.

    You may lose your entire investment and must be in a position to bear this risk without undue hardship. New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

    The usual rules do not apply to offers by issuers using PledgeMe to raise funds. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

    Forward-Looking Statements

    This Information Memorandum contains certain forward-looking statements. A forward-looking statement is a statement that does not relate to historical facts and events. The forward-looking statements are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. These statements appear in a number of places in this Information Memorandum and include statements regarding BRL’s intent, belief or current expectations with respect to BRL’s financial position, business strategies, plans and prospects and future prospects of the industry.

    In many cases, but not all, forward-looking statements can be identified by forward-looking terms such as “aim”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “might”, “outlook”, “plan”, “possibility”, “potential”, “probably”, “project”, “risk”, “seek”, “should”, “target”, “will” and other such similar terms. These forward-looking statements are based on current estimates, assumptions and the like that HSL makes to the best of its present knowledge and are subject to risks, uncertainties and such assumptions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, BRL’s actual results may vary materially from those forward-looking statements. Potential risks and uncertainties include, but are not limited to, those outlined under Key Risks.

    Information in this Information Memorandum

    The information contained in this Information Memorandum is general in nature and does not contain all of the information that a prospective investor may require to evaluate a decision to invest in the proposed investment and the risks associated with such investment.

     This Information Memorandum has been prepared without any actual or prior knowledge or consideration of the investment objectives, financial situation, taxation position or other particular needs or requirements of any prospective investor.

    This Information Memorandum has been prepared in good faith but the information contained within it has not been independently verified.

    No Warranties

    No representation or warranty is given by any person as to the accuracy, completeness or reliability of any statements, estimates, opinions, assumptions or other information contained in this Information Memorandum. In particular no such representation or warranty is given by any of HSL, Opoly Limited, any entity associated with either of them or any of their respective shareholders, directors, employees or advisers.

    Information Memorandum does not constitute financial advice

    Nothing in this information constitutes legal, tax or financial advice. Prospective investors should seek their own professional advice on the consequences of investing under the offer.

    A Note from PledgeMe

    We have completed IQ Connect checks on Opoly Limited and Howard Street Limited, and their Directors, as well as Google and Insolvency checks. There were no adverse findings. 

    Is Christchurch New Zealand's next super city?

    09/08/2022 at 12:35 PM

    The Team at Opoly love property and we may be a bit biased, but we love Christchurch too!

    Check out this great series of articles that The Herald recently ran on why Christchurch just might be New Zealand's next super city.

    https://www.nzherald.co.nz/nz/is-christchurch-nzs-next-super-city-new-herald-series-on-the-future-of-christchurch/KRVMC7T6CHMMYNFO7TEDVPK7NA/

    For your chance to get on the property ladder and  invest in Christchurch property, download the information memorandum now!

     

    We are more than 25% raised!

    06/08/2022 at 4:57 PM

    We are super stoked to well on the way to a successful raise. 

    Thanks to everyoine that has invested so far- Lets keep it going- share Opoly far and wide and lets get more Kiwis on the propoerty investment ladder.

     

    Team Opoly.

    Lets take a closer look at Howard Street!

    25/07/2022 at 3:59 PM

    Join Opoly Director Steve Brooks as he takes a quick tour through 3/42 Howard Street and talks further about this crowdfunding opportunity to get on the property ladder.

      Offer Details

      Current Valuation 100
      Raise Minimum 727,200
      Raise Maximum 727,200
      Share Price 100.00
      Minimum Pledge 100.00
      Maximum Shares Offered 7,272
      Explanation of valuation:

      Howard Street Limited currently does not have any assets, liabilities or shareholder equity. The company will only purchase the underlying asset 3/42 Howard Street if a successful capital raise has been completed.

      Financial Summary

      Prev Year Current Year Est. FY 2024 Est. FY 2025
      Revenue NZ $0 NZ $0 NZ $0 NZ $0
      Operating Expenses NZ $0 NZ $0 NZ $0 NZ $0
      EBITDA NZ $0 NZ $0 NZ $0 NZ $0
      Net Profit NZ $0 NZ $0 NZ $0 NZ $0

      Company Details

      Company Name: Howard Street Limited

      Company Number: 8374372

      Company Documents

      Howard_Street_Limted_-_Information_Memorandum.pdf

      (application/pdf, 2.06 MB, uploaded 20 July 2022)

      Management_Agreement_-_Signed.pdf

      (application/pdf, 395 KB, uploaded 20 July 2022)

      HSL_Subscription_Agreement_-_Signed.pdf

      (application/pdf, 203 KB, uploaded 19 July 2022)

      Howard_Street_Limited_Constitution.pdf

      (application/pdf, 249 KB, uploaded 19 July 2022)

      CoyExtract_8374372_04July2022_HOWARD_STREET_Ltd.pdf

      (application/pdf, 392 KB, uploaded 13 July 2022)

      CoyExtract_8325233_04July2022OPOLY.pdf

      (application/pdf, 745 KB, uploaded 13 July 2022)

      CertIncorporation_8325233_04July2022_OPOLY.pdf

      (application/pdf, 588 KB, uploaded 13 July 2022)

      CertIncorporation_8374372_04July2022_HOWARD_STREET_LTD.pdf

      (application/pdf, 589 KB, uploaded 13 July 2022)

      Director Details

      Name Role Profile URL Invested?
      Steve Cavell Brooks Managing Director https://www.linkedin.com/in/steve-brooks-53362b31/
      James Owen Cooney Director https://www.linkedin.com/in/james-cooney-446276150/

      Ask a Question (You must login to ask a question)


      The 75% threshold for selling the property seems awfully high? given what will be a relatively small secondary market for these shares - particularly if it was a down market. Shouldn't it have a fixed end date, and require a 75% vote to keep it beyond the fixed time frame.

      Posted on 02-08-2022 by Adrian Edge

      Hi Opoly,

      Thanks the previous response. I actually have been working in the development industry for well over 15 years. I understand you have sensitive information but I always tell my investors and purchasers how much I as the developer am making on my builds.

      It definitely helps with getting clients and building transparency.

      Would you reconsider sharing the information on your build mark-up as I struggle to see how this is information that should be kept away from investors?

      They would typically be made aware of this information if they were buying the total build directly from a developer, as opposed to investing in crowdfunded shares of a build.

      Thanks,

      Mike

      Posted on 29-07-2022 by Michael Benson

      Hi Opoly/Wolfbrook,

      How much will Wolfbrook be making as a company on the build?

      What is the mark-up for this Wolfbrook development (i.e; land, subdivision, building process, and materials) ?

      How can we be confident as investors if it costs you $200,000 for the land, $200,000 for the build and you're making $300,000+ selling it to Opoly crowdfund investors?

      Please can you clarify the numbers on Wolfbrook's side.

      Thanks,

      Michael

      Posted on 29-07-2022 by Michael Benson

      Hi Michael,

      Thanks for questions and more than happy to help clarify (where possible) your concerns that also help other potential investors.

      This is not a Wolfbrook offer and as such it would be inappropriate to comment on commercially sensitive information of another company. Opoly intends to market other builder/developers properties and we will not be disclosing their commercially sensitive information either. Opoly is not a platform to sell exclusively Wolfbrook houses, it is a platform to get everyday New Zealanders onto the property ladder and investing into real estate.

      However, a couple of points on your comments above that highlight that the margin you are suggesting is significantly incorrect.
      1. You have failed to account for GST of $93,000 of the sale price;
      2. The build cost you have stated is wildly incorrect- a developer cannot build a house of this size and quality for your suggested cost.

      Michael, builders/ developers make margin which is charged to all purchasers. The fact that the purchaser of this property is a crowdfund is no different.

      I hope this helps with your concerns.

      Answered on 29-07-2022 by Opoly Limited


      Did Opoly entertain purchasing a property from an unassociated entity?
      Has Opoly considered outsourcing the property to one of the many unassociated entities, that offer property management services? some of which offer significantly cheaper services.
      There is a signficant financial incentive for Wolfbrook (who own Opoly) to sell that property. How can an investor be confident, that there is no conflict here?

      Posted on 28-07-2022 by Adrian Edge

      Hi Adrian,

      Thanks for your questions/ comments.

      Opoly will in the future facilitate properties purchased from other developers. But, for the first "new" Opoly raise it was important to secure a property where construction was complete and where we could get a conditional sale & purchase agreement for the time required to achieve a successful crowdfund raise.

      Opoly as Manager will choose a Property Manager that is the best fit for the property, this includes price. Our chosen property manager charges some of the lowest prices in Christchurch and more importantly manages this type of property daily.

      Wolfbrook sold over 300 properties in the last 12 months. One property is not a significant financial incentive. Related parties and their relationship are clearly disclosed in the Information Memorandum.

      Answered on 28-07-2022 by Opoly Limited


      Hello, the 75% majority shareholders. Does this mean that a person with more shares has a greater voting power. For example, if I hold 100 shares. Is my voting power 100 times more than a person who bought 1 share?
      Thank you

      Posted on 23-07-2022 by Omar

      Hi Omar,

      Thanks for your question.

      There is only 1 class of shares and each share carries the same right (and voting power). So, yes, a shareholder with 100 shares carries 100 votes vs a shareholder who owns 1 share and has 1 vote.

      Hope this helps.

      Answered on 23-07-2022 by Opoly Limited


      Hi
      The related parties section of the Information Memorandum discloses the associations between the parties, but it does not disclose how the conflicts of interest will be dealt with. Is there a limit to the management fees Wolfbrook Property and Opoly can charge Howard Street Ltd?
      If the company is going to be completely owned by crowdfunders, who involved in management of the company will have an incentive/responsibilty to get the best returns possible for the investors?
      Thanks

      Posted on 22-07-2022 by Kelly Duffy

      Can you please fully disclose the association with Wolfbrook? At first glance there appears to be a significant Conflict of Interest, from the purchase of the property, through to the management of the property.

      Posted on 21-07-2022 by Adrian Edge

      Hi Adrian,

      Please download the Information Memorandum where all conflicts of interest are clearly stated- these do include Wolfbrook Residential and Wolfbrook Property Management.

      Best.

      Answered on 21-07-2022 by Opoly Limited


      Can you please confirm that Felix Watkins, and Issac Willams are no longer related parties?

      Posted on 21-07-2022 by Adrian Edge

      Hi Adrian,

      Yes, I can confirm Felix Watkins, and Issac Willams are not related parties, Directors or Shareholders of Howard Street Limited or Opoly Limited.

      Let me know if you would like further information on this or anything else.

      Best.

      Answered on 21-07-2022 by Opoly Limited


      Hi Opoly,

      Can you please provide a more up to date / CURRENT valuation report?

      The one provided is dated March 2022.

      That doesn’t give us much colour on where this units valuation sits in the current economic climate.

      - historically high inflation of 7.3%
      - rising interest rates
      - TradeMe seeing the largest monthly drop on record in house prices.

      https://www.stuff.co.nz/life-style/homed/real-estate/129312662/nz-property-prices-have-the-largest-monthly-drop-on-record-trade-me

      What is the estimated growth rate for this 2 bedroom unit?
      Will you be adjusting your forecasts if we continue to see dropping property prices month over month?

      Good idea – but sounds like the timing couldn’t have been worse.

      All the best,

      MB

      Posted on 21-07-2022 by Michael Benson

      Hi Michael,

      Apologies on the delayed response- heaps going on here at Opoly!

      The Collins Taggert valuation provided was commissioned for the originally scheduled relaunch date of Opoly. We are comfortable that its still provides an accurate baseline for the long-term capital growth of this particular property.

      REINZ Monthly Report June 2022 shows Christchurch bucked the nationwide trend with an increase of 1.7% month on month for June.

      We have adopted the below forecast capital growth for the for 5 year “hold” term of this property.
      Year 1 Year 2 Year 3 Year 4 Year 5
      Percentage Growth 3.5% 4.0% 4.5% 6.5% 7.0%

      3/42 Howard Street, unlike most two-bedroom townhouses recently built, has a garage, is in a boutique development of only 4 townhouses in a quiet city fringe location- in short this is a good property that we believe will more likely achieve capital growth over the long term.

      We believe Christchurch is going to offer better than average capital gains over the next 5 years (and further into the future) as the market is currently under priced relative to other major cities.

      https://www.nzherald.co.nz/nz/its-the-prices-young-professionals-ditch-auckland-and-wellington-for-christchurchs-cheaper-houses/JXHX2LLF7HHFTPB6T4SBRCLYJQ/

      Hope this helps.

      Thanks for your support.

      Answered on 25-07-2022 by Opoly Limited


      What is the purchase price if the Howard Street property

      Posted on 20-07-2022 by Daniel E

      Hi Daniel,

      Thanks for your question.

      The property is $720,000 of the total raise of $727,200.

      Let us know if you have any further questions.

      Answered on 20-07-2022 by Opoly Limited

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      "I am a proud wolfbrook employee"

      Brian Lacey
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      "Investment to be held in company name"

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      [email protected]
      2022-07-30 15:21:55 +1200
      Equity Offer

      From NZ $727,200 for 100.0%

      Up to NZ $727,200 for 100.0%

      Share Offer

      Up to 7,272 Shares

      at NZ $100.00 per Share

      Investor Perks

      (Determined by your pledge amount)

      Shares In Howard Street Limited

      NZ $100.00+

      $100 minimum investment, $100 per share

      Warning statement about equity crowdfunding

      Equity crowdfunding is risky.

      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

      New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

      The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

      Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.