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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news