Late February ABN AMRO and McConnell Property announced a partnership that strategically combined ABN AMRO’s investment banking and McConnell Property’s development strengths into an integrated property and funds management business in New Zealand.

The partnership is the result of a year of solid work led by Martin Udale, CEO McConnell Property, together with David McConnell, Managing Director and John McConnell Executive Director of McConnell Group. There have been many others involved with McConnell Group Director, Dennis Broit, a key advisor.

John McConnell says the objective is to set up long term enterprise value around property development and a funds management business, keeping the two streams of activity separate.
“ABN AMRO have taken a 36% stake alongside McConnell Group in the property development business which greatly increases our balance sheet capacity meaning that McConnell Property can increase the number of developments across a more diversified portfolio,” says John.
“At the same time the partnership will set up a separate funds management business which will establish and manage property funds. Each fund will be established for a finite term (depending on investor appetite the first fund could be 12-18 months out) and overseen by an independent board that approves the developments to be included in the fund.
“The partnership brings together two leading brands. ABN AMRO will bring it’s investment banking and funds management expertise to the partnership while McConnell Property is providing a solid platform in the New Zealand property development market and a pipeline of committed current and future projects.”

From the Group’s perspective this partnership is extremely significant. “It reinforces the quality of the New Zealand property development industry in attracting one of the world’s largest investment banks to partner with us in pioneering a relatively new investment concept within New Zealand,” says John.

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