Reliable Foundations Limited 

  Residential Development  

  

  Northington Partners Limited  

WARNING


The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.




If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.




You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.


Overview

Northington Partners has secured the opportunity to invest in Reliable Foundations (“RFL” or the “Company”), NZ’s leading slab foundations provider. RFL is the largest, and only nationwide, supplier of slab foundations for residential and light commercial markets. The Company is highly profitable and is well-positioned to continue to grow its core business and capture additional value through new adjacent product and market opportunities.


A new Limited Partnership (“Partnership”) will raise approximately $15m of new equity for the acquisition of RFL (the “Transaction”) and co-invest alongside the existing shareholders. This opportunity is only available to wholesale investors. Details about the Transaction and RFL are provided below and in the attached Investment Flyer.


 Investment Highlights:


  •  Leading Building Sector Business – RFL is the market leader in slab foundations for residential and light commercial applications in NZ.
  • Market-leading Client Base – RFL has well-established relationships with its key clients, operating under preferred supplier arrangements with a number of Group Home Building (“GHB”) companies.
  • Supportive Industry Dynamics – Significant pipeline of new building activity, supported by builders outsourcing specialist trades such as foundations and GHB’s preference for nationwide suppliers with critical access to building materials.
  • Strong Financial Track Record and Outlook – RFL has a consistent track-record of generating attractive operating profits and has significant scope to leverage its market position to continue to grow both market share and earnings.
  • Attractive Growth Opportunity – Now established as the market leader in foundations, RFL aims to continue to build market share in its core operation and capture attractive adjacent opportunities (eg, driveways and retaining walls) to grow the business and generate attractive investment returns.
  • Proven Management Team - The current owners will continue to manage RFL and will re-invest in the new Company, owning ~30%.
  • Attractive Returns for Shareholders – RFL is being acquired at an attractive entry price and is well-positioned to continue to deliver strong profits and growth. Efficient capital structure and dividend policy expected to deliver dividend yields >14% for FY2023, paid quarterly.

An Investor Presentation will be made available to interested parties containing further detail on the Transaction and the Company on confirmation of interest.



Issue Type:
Residential Development
Sector:
Residential
isEOI: true

Investment Details

Investment Type: Wholesale

Wholesale Investment Type: NZ Wholesale Equities

Transaction Size:NZD 15,000,000.00

Committed Capital: 

Pre-money valuation: 

Minimum Capital Raise: 

Share Price:NZD 0.00

Unit Price:NZD 1.00

Minimum Investment Size:NZD 100,000.00

Advisor

Northington Partners Limited

Website:

Email: [email protected]

Phone:021 270 0631

Document Name Description Date Uploaded
RFL - Investment Flyer (February 2022) (1) 24 February 2022 Preview/Download
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