$100 million available now to invest in Auckland’s expansion

18 February 2013

NZ’s leading property development financiers announce: “$100 million available now, to invest in Auckland’s expansion."

Since 1983, New Zealand Mortgages & Securities (NZMS) have been quietly financing many of Auckland’s high profile commercial and large scale residential property projects.

While the headlines have been filled with stories of finance companies and developers going under, NZMS have been the sole financiers of over $1 billion worth of developments. The Auckland skyline pays testament to their considered, often self-funded approach.

The company principals are Ted Manson, the head of family company Mansons TCLM and James Kellow, director of lending.

“Mansons are the most successful commercial developers in New Zealand,” says Kellow. “They’ve completed 204,000m2 of office buildings in the last decade. Nobody has built more Greenstar-rated buildings. They're renowned for completing multiple 10,000m2 building without any bank mortgage, as they’ve been primarily funded by NZMS, the family finance company started by Colin and Ted Manson.”

A few of the high profile developments funded by NZMS include Telecom Place, 167 Victoria St (2009), BNZ, corner Quay Street and Mahuhu Crescent (2008), the Mon Desir Apartments, Takapuna (1998), Silo Apartments, Emily Place (2006), and the Lumley Centre on Shortland Street (2005), one of Auckland’s few truly premium grade office buildings.

Now NZMS are embarking on a strategy of raising their national profile, for one simple reason, explains Kellow: “We have $100 million to invest in Auckland’s expansion. Then we’ll review and probably invest more.”

NZMS recently brokered the $71 million purchase of the Auckland City Council building in Takapuna, and have just commenced the construction funding for 29 King Edward, an exclusive residential development in Devonport. And they’re actively looking for further projects.

“Auckland is under-supplied and short on desirable residential product. Commercial has many obsolete buildings that require modernisation. We’re particularly interested in funding modern developments that respect the environment with Greenstar standard buildings.”

Kellow is keen to point out the differences that set NZMS apart from the way some others do business.

“Those finance companies that sadly had to call in the receivers and hold mortgagee sales were lending other people’s money. With NZMS we assess our own risk and invest our own capital. We understand development and have a long track record of supporting our borrowers. We answer to our directors – Ted and myself – not outside investors. We’re governed by stringent rules and ethical principles, because reputation is everything.”

On a personal level, Kellow is not simply a professional money man. He truly loves, and is inspired by, property. “The projects can be beautiful. Nothing is more exciting than putting up concrete and steel. It’s incredibly satisfying to help create somebody’s workspace or home.”

ENDS

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