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A large Australian property investor has bought into a $500 million Albany development, signalling continued appetite for New Zealand property from across the Tasman.
ASX-listed Valad Property Group spent $14.8 million buying a stake in a venture by Albany City Property Investments.
The Albany developer has plans to build offices, a high-rise apartment building and a shopping centre on a large leasehold site it wants to buy on Don McKinnon Drive. Valad said it had bought a 50 per cent interest in Albany Partners and a 50 per cent interest in an associated entity, Albany City management.
The purchase means Valad joins a group of New Zealand developers including Symphony Group and Mike O'Sullivan and Kevin Podmore, directors of financier St Laurence in Wellington. Valad said it had more than A$2.2 billion ($2.48 billion) under management in Australia and was one of that country's leading real estate managers with a market capitalisation of A$1 billion.
Garry Looker, a director of the Albany venture, said Valad's involvement would assist with the strategy to develop the property. A prospectus and an investment statement for the bond offer have been issued.
