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

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news