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Investment bank ABN Amro has bought a 36 per cent stake in McConnell Property, the property arm of the McConnell Group.
The deal, which allows ABN Amro to take its stake up to 49 per cent over time, will provide McConnell with a cash injection to further expand its business. It is the bank's first serious step into the New Zealand property market.
McConnell Property chief executive Martin Udale said the group had been looking for ways to develop the business for more than a year and the two firms had decided on a permanent partnership after working closely to try to secure the Newmarket Lion Nathan site last year.
The firms failed to win the tender, but now hope to take advantage of the opportunities presented by a slowdown in the property market and more superannuation money looking for a home through the introduction of KiwiSaver.
"We don't want to sound predatory but a market downturn does provide opportunities," Udale said.
McConnell currently has around $750 million worth of property development on the go, including a number of residential projects ranging from 300 houses up to 1500 houses and an 80ha business park development at Hamilton's airport.
"With a strong project pipeline we are feeling quite comfortable - the business is quite well-positioned," he said.
ABN Amro New Zealand chief executive Simon Allen said the move into property here followed on from its public/private property partnerships in Australia that included hospitals and schools.
