logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
New Zealand
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Hotels
      • Industrial & Logistics
      • Office Leasing
      • Retail
      • Self Storage
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt & Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Advisory
      • Property Sales
      • Structured Transactions and Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Valuation & Advisory
    • Services for Occupiers
      • Enterprise Facilities Management
      • Host
      • Leasing & Advisory
      • Portfolio Services
      • Project Management
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Office
      Industrial
      Retail
      Land
  • Research & Insight
    • New Zealand Research
      Asia Pacific Research
      Global Research
      COVID-19 INSIGHTS
      Insights & Expertise
      Talking Property Podcast
  • People & Offices
    • New Zealand Executive Committee
      Pacific Executive Committee
  • About CBRE
    • Careers
      Case Studies
      Client Tools
      Corporate Information
      Corporate Responsibility
      Investor Relations
      Media Centre

Next

New downtown office spaces offer a prestigious address
  • Home
  • About CBRE
  • Media Centre
  • Opportunities opening up for well-funded apartment developers and financiers Media Detail

Opportunities opening up for well-funded apartment developers and financiers

Auckland | 13 October 2016
  • Email
  • Share
  • Tweet
  • Share

$name

The changing funding landscape for apartment development is opening up opportunities for large, international, well-funded developers and funding organisations to step into the market, according to Gavin Lloyd, CBRE’s National Director of Residential Projects in New Zealand.

Lloyd says that while there are many developers of this nature already working in New Zealand, including Willis Bond, Southpark and Mansons TCLM, he is also seeing substantial international organisations coming into the New Zealand market with sufficient equity to ensure that the projects they start get completed.

He says: “For instance, Belgian developer Eaglestone is creating 49 high quality apartments at Library 27 in Auckland’s CBD, which CBRE is marketing. Eaglestone is a well-funded global developer that is building hundreds of apartments in Europe. Because Eaglestone is not reliant on local bank funding, they can press on with creating Library 27.

“We can expect to see more overseas developers with strong balance sheets and low borrowing requirements filling any void left by local developers. We have seen the entry of international developer Hengyi, which is planning a 300-apartment project in Commerce Street, adjacent to Britomart. Based in Melbourne, Hengyi is a developer with the equity and resources to complete the project. The group have completed over 3000 apartments in Australia and a number of huge developments in the Asian region.”

Diggory Brooke, Director of Capital Advisory at CBRE, says: “Another trend we may see is the entry of the institutional grade developers from Australia, such as Lend Lease, Mirvac and Stocklands. These groups are publically listed giants with strong balance sheets, capable of overcoming some of the funding issues facing the market.”

Brooke also says that another dimension that is currently being missed in the debate is that international lenders are active in the New Zealand market, offering funds across a range of risk parameters.

“There are international banks here in New Zealand who have not pulled up the drawbridge on development funding, such as The Bank of China and China Construction Bank. There are also a range of private equity and other non-bank lenders circling the apartment development market. 

“Strong New Zealand-based developers will continue to be supported by their prime Bank lenders but increased amounts of equity and cash input requirements will mean that only the strong will survive.

“Equally, we are aware that there are two international funds - one Australian and one Asian - looking to inject $300 million into New Zealand property development, and they are looking to do deals.”

 

Media Contact:
Dieter Lund
Marketing Manager
New Zealand Marketing & Communications
T: +64 9 359 5351 | M: +64 21 932 577
[email protected]





For New Zealand/international news or global stories, follow us on Twitter.

ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
  • Corporate Information
  • Corporate Responsibility
  • Media Center
  • About CBRE
  • Careers
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Notice
  • Complaints and Dispute Resolution Procedures
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Youtube
  • Facebook
  • Instagram
CBRE Limited and CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)