Winton Land joins Australian lender MaxCap for $200m apartment/townhouse project
Burleigh Heads on the Gold Coast where MaxCap is involved in a new high rise tower. Photo / 123RF
NZX-listed Winton Land has joined an Australian lender to form a new $200 million entity to build and buy townhouses and apartments in New Zealand.
Chief executive Chris Meehan said a deal had been struck with an unlisted non-bank commercial lender, Australia’s MaxCap.
The fund will build and buy homes in city centers.
Winton will contribute up to $50 million in equity and the rest will come from MaxCap.
Winton will earn a commission equal to 1% of funds under management, plus an incentive commission equal to 20% of all profits.
Winton only listed on the NZX last December, raising $350 million.
Winton specializes in the retirement village sector by developing new villages. It raised the new capital in its initial public offering for up to 90 million new shares at an issue price of $3.887 each.
It is a residential property developer specializing in urbanized neighborhoods. It has 28 projects completed, under construction, or planned, which are expected to result in approximately 7,300 residential lots, housing units, apartments, retirement village units, and commercial lots.
“As part of the Winton offering, Macquarie Asset Management has committed $200 million through one of its real estate vehicles, further backed by a group of high net worth investors for over $100 million and the balance through a Winton-appointed chairman’s list offering that included a book build with major New Zealand and Australian institutional investors,” the company said at its December IPO.
“The bookbuild, jointly managed by Jarden Securities and Forsyth Barr, was significantly oversubscribed,” the company added at the time.
Commenting on today’s move, Meehan said: “We are delighted to be partnering with a quality institutional party such as MaxCap and we look forward to developing a lasting relationship. Both parties believe this is an opportune time. to enter the market to buy townhouses and apartments sites.”
The company said the fund further diversified Winton’s capital sources and income streams. He said MaxCap’s commitment to the fund has strengthened Winton’s position as New Zealand’s leading residential developer.
MaxCap Group co-founder and chief executive Brae Sokolski said the company is committed to financing and supporting New Zealand property for the long term.
He said MaxCap had a long history of successfully aligning with major real estate players and Winton was an exceptional operator.
MaxCap said it was involved with Adelaide’s Vibe Hotel, a 22-storey apartment building in Burleigh Heads on the Gold Coast, the Trio Tower in Melbourne’s Box Hill and a project at 130 Little Collins St in Melbourne .
He also mentioned the Geelong neighborhood in Victoria and the loan to a developer to create the new Rotokauri North housing project in a semi-rural western suburb of Hamilton.
MaxCap said it provided facilities to Charles Ma’s MADE group for a 122ha greenfield site to be developed into 1,800 homes. This must have a final value of $800 million to $1 billion.
Winton has a market capitalization of $720 million. The shares were $3.87 in December, but are now trading around $2.43. Its first annual result will be published next week.