Case Studies
Flatbush, Auckland
This was a proposed development for two apartment blocks totalling 36 units on two adjacent sections in Flatbush, South Auckland. The project had approved building consents and some initial earthworks had commenced when the developer suffered financial collapse and the project was abandoned.
We funded another of our developer clients into the purchase of these properties and assisted with additional funding to review current market trends and change the consented project to a 29 Unit town house development.
Once project feasibility was complete with consents and construction contracts in place, we shifted to an equity funding position and worked with the developer to secure prime bank and mezzanine funding for the balance of the project. Construction and sell down was completed within scheduled timeframes thus ensuring repayment of bank facilities whilst also maximising return on equity.
Newlands, Wellington
This was a partially complete 8 Unit detached townhouse development in Wellington which had stalled due to the financial collapse of an unrelated developer. We saw an opportunity to fund one of our existing clients to purchase and complete the development project.
Working very closely with the developer, our team successfully completed the construction works, marketed and sold down the completed townhouses resulting in a significant return for both the developer and our investors.
The Terrace, Wellington
This was the development of a 9 storey complex comprising 134 apartments and a ground floor retail area in the commercial heart of Wellington. Completed in several stages over a 2 year period, we closely monitored the construction progress and pre-sales, making periodic advances for project costs after consultation with our Quantity surveyor and certification of works completed.
Construction was phased and completed on time and on budget. Upon completion of each stage, settlement proceeds from the sale of the units were repaid to the loan until debt levels were reduced to the extent that the residual debt was refinanced by a retail bank.
East Coast Bays, North Shore, Auckland
This was a highly geared property development loan to an existing client for a 52 unit mixed residential subdivision in one of Auckland affluent North Shore suburbs. To mitigate the risk of the high gearing, the loan was staged such that pre-determined levels of unconditional pre-sales had to be achieved before the next tranche of the loan became available.
Under our close supervision, this tailored model saw the gearing ratios reducing as construction works and sales progressed smoothly, leading to the eventual full repayment of the loan on schedule.
Parnell, Auckland
This was a 24 unit upmarket townhouse development in Parnell, Auckland. The developer started to experience liquidity problems and ever increasing issues with council consents, which brought the substantially complete construction to a halt. The builder walked off the job following ongoing disputes with the developer. The developer was subsequently bankrupted and our team was asked to step in to take over and complete the development and obtain code compliance in order to achieve settlement on the pre-sold units. An administration manager and a project manager, representing various stakeholder interests, were appointed to the project to work under our direction to ensure council consents were obtained and project completed.
Following extensive negotiations, the building contractor returned to complete construction under the supervision of our team. Despite immense difficulties with council due to incomplete or missing documentation, the project was finally completed and granted code compliance.
All the units were subsequently either settled by the original purchasers or marketed and successfully sold in an extremely difficult market. Residual settlement amounts were also negotiated with the defaulting purchasers, resulting in an excellent outcome for investors from an extremely problematic and potentially disastrous development.
Main St, Onehunga
This was a 106 unit residential development with 6 commercial/retail office tenancies at street level. The developer was bankrupted by the Inland Revenue Department. Following his bankruptcy our team became involved and on review it became apparent there were serious issues in respect of titling and Council consents. We appointed Receivers to ensure an orderly completion of the project and sell down of the remaining 55 units. This involved formulating an innovative sales and marketing campaign in consultation with Receivers and Agents to ensure sales proceeds were maximised and interests of all stakeholders were preserved.
All remaining units were completed with all sales achieved in what was a very tight market and at levels within +/-10% of valuation.
