Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Arrow in new property fund with merchant bank

30 November 2012

Arrow in new property fund with merchant bank

Merchant bank Murray & Co is joining forces with Arrow International to form a $20 million property development fund that will seek opportunities throughout New Zealand, including in the Christchurch rebuild.

Arco Property Fund will be open for investment in January, seeking capital commitments from Eligible Persons, with 25% of any commitment payable upfront.

Chairman Rob Campbell, an experienced property investor, said that there was a relative scarcity of development funding in New Zealand.

“We believe the time is right to offer investors the opportunity to participate in professionally managed property development in New Zealand. This is a good time to develop property projects that possess strong underlying fundamentals, built on a steady domestic economic foundation.

“Arrow International and Murray & Co provide a strong combination of property development, financial and governance experience that will position the fund well to take advantage of quality property development projects.”

Justin Murray, Murray & Co managing director, said Arco would focus on industrial, office, retail and residential developments. No more than a third of the fund’s capital would be committed to any one project and there would be a geographic spread of investments.

“We will seek property development opportunities across New Zealand with a focus in regions where economic activity is concentrated. As such, while Arco will not be exclusively focused on the Christchurch rebuild, being based in Christchurch is expected to provide the fund with privileged access to local opportunities.

“We will look at projects that we initiate and manage through to completion and will also consider joint ventures with other developers.”

Murray said Arco did not intend to retain developments in the long term and once sold, would distribute proceeds to the investors.

“The fund is designed for investors who understand and seek returns associated with longer term investment opportunities derived from property development.”

Bob Foster, co-founder of Arrow International, joins Murray and Campbell on the Arco board.

“The Arrow team has significant property development expertise and extensive construction experience covering all major property sectors, which represents a distinct competitive advantage for the fund.”

Arrow International
Arrow is one of New Zealand’s leading construction and project management companies. For almost 30 years, it has delivered successful construction projects and now operates from 11 branches through New Zealand and Australia, employing more than 300 staff.

Arco has no formal obligation to use Arrow’s construction services, although Arrow will be the Fund’s preferred construction partner. Where Arrow does undertake such services for Arco, its cost and terms will be benchmarked by an independent Quantity Surveyor to ensure Arrow is at or below the professionally assessed market price.

Murray & Co
Murray & Co is a merchant bank based in Christchurch and servicing clients throughout New Zealand. The firm has four divisions – Property Advisory, Corporate Advisory, Wealth Management and Private Capital.

Murray & Co advises several substantial property-owning entities, offering those clients both financial and property expertise.

Murray & Co is advising parties on various aspects of the Christchurch rebuild, including assessing development options and financial structuring of proposals.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news