NZ INVEST HOUSE
CapitalGroup became aware that a distressed Australian investment fund was struggling to sell its last remaining NZ real estate asset. The property had been managed “remotely” and is situated on Maori trust board land. This impacted its liquidity and value from a sale perspective. The underlying value of this building lies in its excellent location and A grade specification.
Following detailed analysis CapitalGroup decided that the property had been unduly marked down by the market and made an unconditional short settlement offer to the vendor at a value significantly below replacement cost.
Since acquisition CapitalGroup in conjunction with its investment partner has considerably increased the property’s free cashflow, WALT, and concluded the ground rent review with the Maori trust board.