Tuapeka announced on Friday it was selling its Fairfield factory and warehouse site and leasing it back, freeing up about $5million in capital.
The money would be used to expand and take on more staff, possibly more than 200 over the next four years.
The wholesale issue of interests in the Tuapeka site would be made to investors under the provisions of the Financial Markets Conduct Act 2013.
It would be offered and managed by Taurus Artemis Ltd, a Canterbury property syndication specialist.
Projected yield for investors was 8.51% in year one and 8.88% in year two, along with projected monthly cash distributions of 8.5%.
The asset was a commercial property of a fully renovated factory and warehouse facilities of about 2000sq m.
The valuation of the property of $5.15million was prepared by Telfer Young (Otago).
There were 8.8 years remaining of a 10-year lease and two rights of renewals of four years, expiring in January 2033. The annual rent increase was 2% and a market review every four years.
The structure of the deal is equity of $2.8million, 56 interests of $50,000 each. The minimum subscription of $100,000 was available to eligible investors.
There was bank debt of $2.55million, initially interest-only for three years.
Tuapeka Gold Print was founded in 1987 by Jim Robertson, who started printing business cards at home on his kitchen table in Lawrence. For the next five years, the company focused on printing pens and by 1993, and sales of up to four million pens, it was the largest printed pen business in New Zealand and had grown to become the largest employer in Lawrence.
In 2007, Mr Robertson brought Brad Houghton into the business as an equal partner.
He became managing director and in 2014, the business moved from Lawrence to Fairfield.
Three years on, the business was Australasia's largest in-house supplier of decorated promotion products, excluding apparel, employing more than 170 staff.
