Approval clears the way for new wholesale direct property fund
The door has been opened for a new direct open-ended property fund for wholesale investors in New Zealand with the news that the Overseas Investment Office has given approval for Vinta to place selected assets into a planned new fund.
The news clears the way for Vinta to finalise preparations for the launch of a fund before the end of the first half of 2016.
Michael Holloway (pictured below), Head of Funds Management NZ for Vinta, based in Shortland Street, Auckland, says that Vinta is an integrated property group with a portfolio of assets worth in excess of NZD $800 million and a strong presence and track record in New Zealand.
“With a 60 year history and active in New Zealand since 2001, the company has a long-term track record of success in developing, owning and managing office and retail properties. In New Zealand, these include three Wellington office assets – the recently refurbished 33 Bowen St, 110 Featherstone St and 13-27 Manners St.
Holloway says that this portfolio will provide access to a core/core plus wholesale property fund with low gearing, long WALTs, low volatility and real-property returns to a sector of the market where there is a clear demand for more product.
“This will come at a time when investing in alternatives is emerging as a clear trend for long-term strategic wholesale investors, as part of a diversified investment portfolio. In recent times traditional asset classes have struggled to provide sufficient income returns to long-term investors as bond yields have narrowed and the price over earnings ratio for equities has increased. As a result many investors have turned their attention to alternatives including direct real estate.”