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Colliers’ Debt Advisory team plays key role in major development deal

NZ_AucklandCBD_Communications_Colliers Debt Advisory team plays key role in major development deal

Colliers’ Debt Advisory team recently sourced a significant funding package that will allow the MADE Group to forge ahead with a major infrastructure development near Hamilton.

The 122ha greenfield site at Rotokauri North, will be developed into approximately 1,800 homes with a primary school, sports park, and neighbourhood centre.

Work is scheduled to commence in 2022 and the development will likely take seven years to complete. The Base shopping centre is 2.5km to the east of the site and Hamilton’s CBD is approximately 13km away.

Colliers’ Debt Advisory unit were mandated by the MADE Group to secure funding for this project in Rotokauri and they were able to source $100 million through the MaxCap Group, one of Australasia’s largest real estate financiers. This allowed settlement to go ahead during the recent nationwide Alert Level 4 lockdown.

The specialised business unit at Colliers was established in early 2020 when experienced banking industry expert Chelsea Herbert joined Colliers as a Director to lead the team.

Following her arrival, she was engaged to work on a number of high-profile transactions as Colliers fast established itself as a market leader in this complex field. The Debt Advisory unit have since secured more than $500 million of debt for real estate transactions across New Zealand.

Prior to her current role at Colliers, Herbert was a Corporate Property Partner at the Bank of New Zealand, where she managed a significant portfolio of clients across the commercial and residential property sectors.

The establishment of Colliers’ Debt Advisory team in New Zealand follows on the heels of the success of their Sydney-based colleagues who have experienced strong success in connecting their clients with capital since they began operating in 2018.

Herbert worked alongside Senior Analyst Lucy Mitchell to source the funding for the Rotokauri North project.

“We assessed Made’s transaction and needs, and worked with the engineer, planner, and valuer to present a funding proposal to the market to obtain a funding partner that met the clients’ needs,” Herbert says.

“Working with MaxCap’s experienced property funders was critical to the success of the transaction. New Zealand’s Resource Management Act and plan change process is unique and so is development funding.”

The MADE Group is a privately-owned property group with an established and successful track record in developing land, including their flagship Auranga project in Drury.

Median residential house prices in Hamilton city have increased by 41 per cent since August 2018. Particularly buoyant market conditions have been evident during the previous 12 months and the MADE Group has committed to at least 150 affordable homes in this development.

Charles Ma, MADE founder and Managing Director, says collaborating with the Colliers Debt Advisory team was an easy decision.

“We are very focused on working with high-quality people that can represent us well and Chelsea has definitely given us that confidence and subsequently delivered that,” Ma says.

“We believe there is no substitute for good experience and character that leads to good outcomes and networks for all involved.”

Mark Farrands, Chief Investment Officer for MaxCap New Zealand, says this large-scale, complex transaction is indicative of the unique value that MaxCap can deliver to New Zealand property developers and the Colliers Debt Advisory team played a key role in bringing it to fruition.

“My colleague Aidan Paterson, Investment Analyst for MaxCap New Zealand, and I thoroughly enjoyed working with Chelsea, Lucy and the Colliers Debt Advisory team to help deliver a tailored funding solution for the MADE Group,” Farrands says.

“Chelsea and Lucy were excellent – they presented a very well balanced and analytical proposal, identifying and mitigating the risks, as well as presenting the benefits of the transaction. We look forward to collaborating with them again soon.”


Related Experts

Chelsea Herbert

Director | Debt Advisory

Auckland

17 years' experience in corporate property banking, commercial investments, developments and cashflow lending at BNZ and ANZ. Passionate about private large scale developments and investments; deal structuring, adding value, connecting people and managing key relationships.    

Specialise in sourcing debt capital both domestically and offshore for developers and investors in Real Estate.  I work with clients on acquisition funding, development funding, refinancing, restructuring and advisory. 

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Lucy Mitchell

Senior Analyst | Debt Advisory

Auckland

Relationship Banking professional with 6 years experience in the Property Finance and Commercial and Institutional sectors.

At BNZ managed a wide range of financing transactions for commercial investors and developers in the Auckland and wider North Island region and have supported Senior Lenders in several complex financing transactions for overseas funds, large scale developers and with syndicated structures. At MUFG Bank I developed my understanding of debt capital markets and cash flow lending. I now form part of the market leading Debt Capital Markets team at Colliers, supporting their real estate Debt Advisory business.

I am passsionate about sustainability and want to be part of the conversation as ESG financing transitions from a  bonus to a requirement. 

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