A former Blue Chip managing director has bought a South Island finance company and wants to raise $50 million in term deposits.
Nick Wevers and his associates bought Priority Finance, a Christchurch business founded by Noel and Kent Gillman, which has since had its name changed to Viaduct Capital.A new prospectus has been registered for the term deposit issue.
The money would be backed by the Government's deposit guarantee scheme, Wevers said.
The property sector had a desperate demand for money yet traditional bank lending was extremely hard to get.
Viaduct saw a gap in the market and believed it could satisfy a strong demand.
Wevers said the new business was aiming to provide money for real estate and business investments.
Priority's loan book stood at $7.39 million last month.
