Australian specialist real estate financier MaxCap Group has expanded into New Zealand with a joint venture with Bayley Corporation and investment advisory firm Forsyth Barr.
MaxCap will own 50% of the joint venture, known as MaxCap NZ. Its New Zealand partners will have an equal stake in the remaining half interest.
Brae Sokolski, MaxCap鈥檚 co-founder and CIO, said the recent drop in New Zealand鈥檚 official cash rate to 1% and the flow-on effect on bank deposit rates meant that New Zealand investors were looking for a higher level of return.
鈥淏ayley鈥檚 will be assisting us with originating lending opportunities through its far-reaching network and client base across New Zealand.
鈥淲e will also be looking to access Kiwi (NZ) currency funding sources, focusing initially on high net worth private investors utilising Forsyth Barr鈥檚 considerable expertise and experience in wealth management,鈥� said Sokolski.
Bayley鈥檚鈥� managing director Mike Bayley said the company鈥檚 involvement in the joint venture had been driven by current limitations on commercial property funding from retail banks.
鈥淭hese limitations are, at times, having a negative effect on market activity and are a source of frustration for clients, particularly developers who play a vital role in creating new leasing and investment opportunities,鈥� he said.
For this reason, he added the firm had started to look for alternative sources of funding for clients.
Jonty Edgar, co-head of markets for Forsyth Barr, said Max Cap Group鈥檚 move across the Tasman would provide the firm鈥檚 wholesale and institutional clients with more commercial property investment options.
鈥淲e have been looking to diversify our offerings in the property sector, driven by private investor demand for alternative investments with higher yields and attractive risk-reward dynamics.,鈥� said Edgar.
Mark Farrands, the newly-appointed chief investment officer for MaxCap NZ, said negotiations were already well advanced on funding for several land development deals in Queenstown and Auckland.
MaxCap Group, which specialises in commercial real estate debt funding, currently has A$4.1bn (鈧�2.5bn) of funds under management, from investors including AustralianSuper and APG.
