A new Colliers International service is providing an alternative to traditional bank funding solutions by matching commercial property investors to development and investment opportunities.
The Capital Sourcing unit has been established by Tim Lichtenstein, who has an extensive track record in capital raising for commercial real estate assets.
He comes to the role from Colliers International’s Syndications team, which has been involved in more than $400 million in capital raises for investment assets in New Zealand and Australia over the last four years.
Lichtenstein says New Zealand banks have been operating in a regulatory environment which in recent times has led to restricted lending parameters.
“While this has brought some challenges, it has also created opportunities for non-bank funding like the capital raised through our Capital Sourcing service,” he says.
“Our role is to source capital from client investors and match it to projects and opportunities, either in the form of debt or equity.
“It’s essentially an alternative to bank funding. We’re effectively providing a peer-to-peer lending solution for commercial property projects.”
Lichtenstein says Capital Sourcing leverages off Colliers International’s extensive client contacts and deal books.
“Through long-standing relationships across all tiers in the market, we’re able to find the right mix of capital for projects of all sizes. It’s a great solution for both investors and developers.
“Investors with capital will have the opportunity to see deals on our books before they are put to the wider market, giving them first mover advantage.
“Developers will get access to capital without necessarily being constrained by the banks’ more restrictive lending environment. It’s a much more flexible funding model that allows projects to move ahead much more quickly.”
Lichtenstein says Capital Sourcing will also advise clients on the positioning of their capital.
“We can identify and structure capital contributions based on a project’s goals and long-term strategy.”
Lichtenstein says Colliers International already has a solid track record in capital raising.
The Syndications team, which Lichtenstein ran before moving to set up Capital Sourcing, has been responsible for the ongoing syndication of the $210 million Millennium Business Centre in Greenlane, Auckland – New Zealand’s largest single capital raise for a syndication property.
“While Syndications continues to be geared towards retail investors, Capital Sourcing will be more focused on larger wholesale investments,” Lichtenstein says.
Capital Sourcing will work closely with Colliers International’s existing business lines and brokers, including International Sales Direct Richard Kirke.
“Richard has a proven track record in attracting offshore credit through his connections, so we’re off to a very good start.”
Lichtenstein says investors looking for projects to fund, and developers seeking alternative funding sources, should get in touch.
“Whether you’re looking to make a modest investment or go big with a trophy, Colliers International’s Capital Sourcing service would be happy to help you find a solution to suit your needs.”