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

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news