A property developer is hoping to seize on the challenging market conditions, after announcing a new $200 million development fund.
The fund will be focused on apartments and townhouses throughout New Zealand's main centres - starting with Auckland. (File image) Photo: RNZ / Nate McKinnon
NZX-listed Winton Land has partnered with Australian lender MaxCap, with Winton putting up to $50 million of equity to the fund, and the remainder coming from MaxCap.
The fund will be focused on apartments and townhouses throughout New Zealand's main centres - starting with Auckland.
Winton chief executive Chris Meehan said given the slowing market, the company could sniff an opportunity.
"We think the current challenges in the market gives us a great opportunity to pounce on some opportunistically cheap sites," Meehan said.
"People are struggling, some weaker developers are finding it tough, and we think we can buy sites from both weaker developers and some lenders at the right price."
Despite the sector's challenges, Meehan did not believe there was hesitancy in property investment, and was keen to partner with a major lender like MaxCap.
MaxCap co-founder Brae Sokolski said the fund was a statement to the market that the two parties were committed to supporting New Zealand's real estate in the long term.
"MaxCap has a long history of successful alignment with leading real estate players and in Winton we are backing an outstanding operator and the pre-eminent residential developer in New Zealand," Sokolski said.
