Williams Corporation's work at 14 Nova Pl, Christchurch.
Williams Corporation's work at 14 Nova Pl, Christchurch.
A chief at Christchurch-headquartered residential developer Williams Corporation says the business is planning a partial listing of the business on the NZX in 2027.
Co-founder Matthew Horncastle said yesterday he, managing director Blair Chappell and others would aim for a float of less than half the company in two years’ time.
“Williams Corporation intends to pursue a public listing in October 2027, subject to board approvals, regulation, and market conditions,” he wrote on social media.
“Founding shareholders, including Blair and myself will retain majority ownership and management,” the Williams co-founder wrote.
The business would complete its current developments, finish projects bought around 2021 that faced margin pressure during the market decline, and rebuild a new work in progress at full margin before the listing, Horncastle said.
“The listing recognises the value already created. Williams Corporation is recorded on our books at zero, meaning any market value achieved will directly strengthen our balance sheet.
Blair Chappell and Matthew Horncastle.
“The purpose is not to fix weakness but to unlock value, improve transparency, and access a wider range of lower-cost debt for future developments,” Horncastle said.
The float could enable the business to rebuild, he wrote.
“At the market peak, we generated about $1 million of daily revenue. Our focus now is to rebuild towards that level from a diversified and profitable base.
“The market will determine our valuation. Our job is to produce results,” he wrote.
In response, some questioned the intention, asked about employees working 12 hours a day and inquired about revenue lately.
“You must need more funds to pay for the interest rates on all those houses and apartments that are not sold yet,” one commenter wrote on LinkedIn.
Others raised Financial Markets Authority regulations around advertising initial public offers.
The company was once New Zealand’s busiest privately-owned residential developer but has slipped lately.
Blair Chappell and Matthew Horncastle when the business was expanding fast.
In 2018 when they were both aged 24, the company built 40 homes in the inner Christchurch city and surrounding suburbs and sold 80, with an overall sales value of about $35m.
But in 2021, it was second only to the powerhouse of the sector G.J. Gardiner.
It built 761 homes in the year to October 2021 for $107m, selling houses for what might seem like a low average $141,164. That doesn’t include the land.
In 2022, tougher times prompted Williams to double time frames for repaying $152.4m of investors’ funds. Six-monthly withdrawals from three funds were changed.
Williams retrenched 10 to 30% of its staff here, in Australia and in Asia because of the housing market downturn.
Horncastle said Williams had to be downsized and staff reduced to meet a changing market.
The Christchurch-headquartered business had grown extremely fast since 2017 to become a huge force in the apartment and townhouse sector, building 1500 residences in one year.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.
