Private Equity Real Estate Experts Call New Zealand a Safe Haven, Best Bet for Investment

The Du Val Group (DVG), a specialist real estate fund management, advisory and property services group, today announced its ongoing conversations with top-tier Asian brokers to establish an agreement with an exclusive distributor for its $250 million NZD private equity real estate mid-market fund. DVG, in conjunction with its independent advisors The Conrad Group (TCG), is currently reviewing several Asian brokerage firms to support the fund, which seeks to invest in a substantial portfolio of office, industrial, retail and residential property assets in New Zealand. The fund, which opens for registration on August 8, aims to take advantage of the global economic downturn by purchasing assets at discounts to their historic valuations from listed real estate, security holders, REITs and other institutions.

“The relationship we envision would eventually include other funds and the creation of a $1 billion U.S. debt facility,” said William Nobrega, president of TCG, a global consulting and investment advisory firm. “The fund is structured for high-net-worth individuals who would normally not have access to PERE funds, as it will have a minimum investment of $500,000 NZD. We expect the majority of investors will be Asian-based due to the growing asset bubbles in China and investors’ need to diversify risk.”

The investment strategy is designed to provide investors with an internal rate of return (IRR) of more than 20% per year. The fund is open only to eligible, qualified residents of New Zealand, Singapore and Hong Kong.

Jason Smith, managing director of Du Val Group Limited, said the team has received numerous inquiries since it announced its plans July 20 to establish the fund. “The Du Val Mid-Market Fund is one of the most exciting private equity real estate investment opportunities offered this year, and we are very pleased with the overwhelmingly positive reception we are receiving from the market and potential investors.”

Smith cited recent facts and statistics, including:

• New Zealand, approximately the size of the United Kingdom, is currently ranked No. 4 by Dun & Bradstreet and the Wall Street Journal in terms of transparency, and is also ranked by the Heritage Foundation and the Wall Street Journal among the top 4 economic development destinations, taking into account openness of trade policy, tax rates, monetary policy, wages, unemployment, inflation levels, investment flows and regulation.

• New Zealand has proved to be one of the world’s most resilient, transparent markets immune to volatility.
• The New Zealand economy is set to grow at more than three percent during the next two years and housing starts are currently at a two-year high.
• Private consumption in New Zealand will increase by 2.5 percent this year and residential investment will surge by 18 percent.
• The country has a net influx of immigration coupled with a high standard of living and strong economic fundamentals.

DVG’s investment strategy will target portfolios diversified by sector, location, tenant mix and value range. Individual properties will generally be valued between $5 million to $50 million, reflecting the general partner’s belief that mid-market properties provide solid long-term value and protection from market volatility. Public-to-private and off-market acquisitions will be considered. Proving its commitment to the fund, the Du Val Group Limited has agreed to invest up to four percent of investors’ commitments (up to $10 million). The team will begin meetings this month with potential investors at its regional offices and at its planned events in Auckland, Wellington, Hong Kong, Singapore and Beijing. More information regarding Du Val’s exclusive investor cocktail receptions and the Mid-Market Fund is available via the company’s website at http://duvalglobal.com/news-events/events/. Private placement documents will be available via the website beginning August 8.

About Du Val Group

The Du Val Group (DVG) is a specialist real estate fund management, advisory and property services group, with offices in Europe, Asia Pacific and Australasia. The Du Val Group, comprised of a team of leading experts in New Zealand real estate, business and finance, bases its investment approach on entrepreneurship, integrity, service and professional excellence to provide maximum rates of return. More information is available at www.duvalglobal.com.

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