Winton Land joins Australian lender MaxCap for $200m apartment/townhouse venture

Burleigh Heads on the Gold Coast where MaxCap is involved in a new high-rise tower. Photo / 123RF

NZX-listed Winton Land has joined an Australian lender to form a new $200 million entity to build and buy townhouses and apartments in New Zealand.

Chief executive Chris Meehan said a transaction was with unlisted non-bank commercial lender, Australia's MaxCap.

The fund will build and buy units throughout city centres.

Winton will contribute up to $50m equity and the rest will come from MaxCap.

Winton will earn a fee equal to 1 per cent of the funds under management, plus an incentive fee equal to 20 per cent of all profits.

Winton only listed on the NZX last December, raising $350m.

Winton specialises in the retirement village sector by developing new villages. It raised the new equity under its initial public offering for up to 90 million new shares at an issue price of $3.887 each.

It is a residential land developer that specialises in master-planned neighbourhoods. It has 28 projects either completed, under construction or planned, expected to result in around 7300 residential lots, dwellings, apartment units, retirement village units and commercial lots.

"As part of the Winton offer, Macquarie Asset Management has committed $200m through one of its real estate vehicles, further supported by a group of high-net-worth investors for in excess of $100m and the remainder through a chairman's list offer nominated by Winton that included a bookbuild with leading New Zealand and Australian institutional investors," the company said when it listed in December.

"The bookbuild, run jointly by Jarden Securities and Forsyth Barr, was significantly oversubscribed," the company added at that time.

On today's move, Meehan said: "We are delighted to partner with a quality institutional party such as MaxCap and we look forward to developing a lasting relationship. Both parties believe this is an opportunistic time to be entering the market to purchase townhouse and apartment development sites."

The company said the fund further diversified Winton's capital sources and income streams. It said MaxCap's commitment to the fund gave further credence to Winton's position as New Zealand's leading residential developer.

Brae Sokolski of MaxCap. Photo / supplied

MaxCap Group co-founder and executive director Brae Sokolski said that the business was committed to funding and supporting New Zealand real estate long-term.

He said MaxCap had a long history of successful alignment with leading real estate players and Winton was an outstanding operator.

MaxCap said it was involved in Adelaide's Vibe Hotel, a 22-level apartment building at Burleigh Heads on the Gold Coast, the Trio tower in Melbourne's Box Hill, and a project at 130 Little Collins St in Melbourne.

It also mentioned Geelong Quarter in Victoria and lending for a developer to create the new Rotokauri North housing project in a semi-rural suburb of western Hamilton.

MaxCap said it had provided facilities to Charles Ma's MADE Group for a 122ha greenfield site to be developed into 1800 homes. That is to have an end value of $800m to $1b.

Winton has a market capitalisation of $720m. Shares were $3.87 in December but are now trading around $2.43. Its inaugural annual result will be out next week.