CapitalGroup is a boutique real estate private equity house established in 1996, which invests equity and mezzanine funds into the New Zealand property market.
CapitalGroup focuses primarily on structured investments in real estate through:
- investment via mezzanine / structured debt facilities,
- equity co-investment
- acquisition of distressed property debt; and
- direct property investment
Founded in 1996, joint owners Greig Allison and Phillip Bell formed CapitalGroup
to provide capital and specialist advice to the New Zealand property market.
Customers benefit from utilizing the business’ specialised mix of private equity, structured debt and banking expertise
as well as leveraging off CapitalGroup’s experience and relationships in the New Zealand real estate market.
CapitalGroup operates as an investment firm as opposed to a holding company. Each investment in our portfolio is standalone being independently managed and financed. Cash flow from one investment cannot be used in another investment. This structure also enables flexibility for our investor group to meet their individual investment criteria. We invest our own funds into every investment to demonstrate our alignment to our investors.
CapitalGroup has a close and long-standing relationship with the investor group enabling flexibility and prompt responses to investment opportunities. The funding base is significant, stable and is not exposed to the vagaries of the retail funding market.
MEZZANINE & STRUCTURED DEBT
Since its inception in 1996, CapitalGroup has provided structured debt facilities across all real estate sectors including land subdivisions, residential apartments, house and land projects as well as commercial and retail buildings.
These projects have ranged in value from $2 million to $300 million, with the amount invested in each project using CapitalGroup funds from $0.5 million up to $20.0 million, but typically in the $2 million to $5 million range.
Through a combination of careful structuring and CapitalGroup’s relationships with senior debt lenders projects can be 100% funded.
The CapitalGroup team has a deep understanding of how property is financed. Because of this people who do business with us benefit from CapitalGroup’s structuring expertise and our long term relationships with senior bankers and market participants.
Each project is assessed on an individual basis to determine the most effective funding structure to minimise funding costs and manage risk.
The nature of CapitalGroup's private capital funds also suits private equity investment. Some projects do not suit 100% debt leverage as they have more front end risk. These projects may require resource consents or sales/leasing before they can safely attract a 100% leverage debt structure. For well founded projects which we assess will be successful, CapitalGroup can provide equity structures to enable the developer to gain control and acquire the opportunity. This enables time to gain resource consent and other key development requirements to enable a more traditional leveraged structure to be implemented at a later date.
In February 2019 CapitalGroup through a limited partnership structure acquired 100% of the shares of First Mortgage Managers Limited (“FMML”). FMML is licenced under the Financial Markets Conduct Act as a managed investment scheme manager and is responsible for two group investment funds - the First Mortgage Trust Group Investment Fund and a unit trust - the First Mortgage PIE Trust. These funds form the ‘First Mortgage Trust” or “FMT” which is New Zealand’s largest non-bank first mortgage lender.
Ground floor, 5 Eglon Street
Parnell, Auckland 1052
PO Box 2881
Office: +64 9 309 0506
Fax: +64 9 309 0508