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Raising capital through Managed Investment Scheme offering investors opportunity to own a proportionate interest.

Tuapeka Gold Print is likely to create more than 200 new jobs over the next four years as it expands its business following what is hoped to be a successful capital-raising.

The Fairfield business, which was started in Lawrence in 1987 by Jim Robertson, is planning to offer its 4000sq m factory and warehouse for sale as a managed investment scheme and investors will be invited to own a proportionate interest.
  • Projected yield for investors is 8.51% forecast in Year 1 and 8.88% in Year 2
  • Projected monthly cash distributions of 8.5%.
The expected $5 millon raised from the sale would give the business the opportunity to invest in expansion, meaning larger manufacturing capability and an expected doubling of jobs.

General manager Greg Jolly said current staff numbers were about 170 and although he planned for the company to be a lot smarter, and with better productivity, it was feasible job numbers would grow to 400.

"I do remember thinking we would be lucky to get to over a hundred."

The issuance is being conducted by Christchurch based finance and property specialist Taurus Group. Managing Director David Kitson says with its focus on smaller $5-20m property syndications, Tuapeka fits the bill:

"We are excited and pleased to be able to present this opportunity to the Wholesale and Eligible Investor market. It fits in with our ongoing desire to provide sustainable and attractive investment opportunities to clients and it's great to be involved in such a fantastic local business success story".

Tuapeka Gold moved to Dunedin three years ago this month and growth had been strong since then – in this time sales turnover has grown by 34%, followed by 38% growth and 51% last year.

The company is expanding into Australia, and has moved into a wide variety of goods, including umbrellas and bags.

"Our philosophy is bringing China to Australasia. We work with our distributors so they have a five- to seven-work-day turnaround, depending on whether it is New Zealand or Australia.

"They don't have to worry about a 12-week lead time and we continue working with our distributors on what works best."

Clients wanted stock quickly, the full colour range and an interactive website to manage their business and that was what Tuapeka delivered.

It is now New Zealand's largest supplier of wholesale promotional products, he said. The decision to sell the factory and warehouse came after three years of rapid growth. Something had to be done to support future expansion.

It made sense to own the building when Tuapeka first moved to Fairfield so it could be adapted to the company's needs, Mr Jolly said.

However, owning tied up capital that could be used for growth. Offering the property to investors and leasing it back freed capital up and gave the company options.

The company aimed to quadruple its growth over the next four years and planned to expand the manufacturing into the warehouse space on-site. More equipment, innovation and using shift patterns would align the strategy, he said.

People often asked why Tuapeka was still based in Dunedin and had not moved to a larger centre.

Mr Jolly said he was a "Dunedin boy".  Mr Robertson was from Lawrence but a loyal Otago man and Mr Houghton had become disillusioned with Auckland several years ago and was pleased to be living in Dunedin.

"Our supply chain is so efficient we can provide product in five days. But the biggest reason for being here is Dunedin. It is simply a great place to live and work."

Details about The Managed Investment is in the Information Memorandum, please
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