The commercial property market, which was a key driver of Auckland’s economic prosperity over the last decade, has seen a number of changes and challenges in the past couple of years.
The onset of the global financial crisis severely restricted the availability of bank debt to fund commercial property purchases or new developments.
The values of these properties and their rentals have adjusted to the new economic conditions but this has seen the failure of a number of property development businesses and almost all of the finance companies that provided mezzanine finance to them.
BNZ Partners, the Bank’s Business, Agribusiness and Corporate Division, has continued to provide funding solutions for property developments and investments throughout this period through a team of property finance specialists.
These specialists are located around the country giving them a real grasp of the local property market conditions.
They are empowered to make local decisions even for relatively large property transactions.
In a bold move in this market, Bank of New Zealand has also created a Property Mezzanine Finance Team to fill some of the funding gaps left in the market by the finance company failures.
This team can provide Mezzanine Debt as a separate debt facility, which offers additional leverage for a property project or investment.
This Mezzanine Debt facility is subordinated to the senior debt facility provided by the local Property Finance Partner. The team recently completed a number of transactions for property projects throughout New Zealand.
The BNZ Partners approach is to provide local access to other banking specialists alongside the Property Finance Partner. These specialists can assist with interest rate or foreign currency hedging, private banking needs and transactional accounts together with a complete array of other banking products providing an integrated solution.
With borrowing costs at historically low levels, interest in investing in commercial property is returning and the BNZ Partners property finance team is ready to help as the property market recovers.
To contact a local BNZ Property specialist go to www. bnzpartners.co.nz or call 0800-955455.
BNZ investment advisers’ disclosure statements are available free of charge on request. Details, Standard Terms and Conditions and Investment Statement for Term Investments may be obtained free at any store or at www. bnz.co.nz.
Editor’s Note: BNZ Partners is the Title Sponsor of the Indian Newslink Indian Business Awards (IBA) 2011, Sponsor of the Best Large Business Category and the Supreme Business of the Year Award. BNZ Partners will host three free Workshops for entrants to the IBA 2011.
Tuesday, May 3, 2011: BNZ Partners, Tamaki Room, Level 1, 86 Highbrook Drive, East Tamaki (South Auckland)
Tuesday, June 7, 2011: BNZ Partners, Board Room, 373, Great South Road, Henderson (West Auckland)
Tuesday, July 5, 2011: BNZ Partners, Level 8, Room 9 (Deloitte Centre), 80 Queen Street (Auckland City).
All Workshops will be held from 4 pm to 6 pm, at which Convenor of the IBA Judging Panel and BNZ officials will be present to assist and mentor entrants on relevant issues.
To register, call (09) 5336377 or email editor@indiannewslink.co.nz
