Dunedin-founded construction company Arrow International has
joined Christchurch-based merchant bank Murray and Co to form
a $20 million property development fund.
Arco Property Fund chairman Rob Campbell said there was a
relative scarcity of development funding in New Zealand and
the new property development fund would seek opportunities
around New Zealand, including in the rebuilding of
"This is a good time to develop property projects that
possess strong underlying fundamentals, built on a steady
domestic economic foundation," he said in a statement.
The Arco fund, which would focus on industrial, office,
retail and residential developments, opens for investment in
January, seeking 25% of any capital commitment payable
There would be a geographic investment spread and no more
than a third of the fund's capital would be committed to any
Arco would not be exclusively focused on Christchurch's
rebuilding, but being based there may provide the fund with
privileged access to opportunities, Mr Campbell said.
Arco has no formal obligation to use Arrow's construction
services, but Arrow will be the fund's preferred construction
partner, with any work done benchmarked by an independent
quantity surveyor, at or below market prices.