EQUITY CO-INVESTMENT RESIDENTIAL APARTMENTS
CapitalGroup was approached to assist with acquisition of land and subsequent development of a 5 level apartment project in a popular Auckland city fringe location. CapitalGroup assisted by providing funding in the early phase to allow the development partner to acquire the land, obtain a resource consent, enter into a construction contract and achieve sufficient presales prior to bank funding being available.
CapitalGroup was able to gain comfort around the planning, sales and construction risk through carrying out a detailed due diligence process.
CapitalGroup invested for the following reasons:
- The site was well located in a prime city fringe location.
- The development partner was known to CapitalGroup with a strong background in property.
- A positive pre-application was held with Auckland Council indicating a resource consent could be achieved for the proposed development.
- Significant early interest was shown from potential buyers
- Project costs were estimated by reputable engineers and reviewed via a quantity surveyor with an existing relationship with CapitalGroup.
- A well respected construction company was involved from the early phase.