Investors
Pearlfisher prides itself on performance and reputation and the ability to target specific opportunities as market conditions change.
Pearlfisher and its Investors interests are aligned with our commitment to co-participation with Investors and together provide well-structured and considered lending products.
Property remains New Zealand's largest investment class, for many Investors it is their largest asset exposure. The macro trends of a structural under-build, record immigration and the recent changes in the availability of bank funding provide attractive risk / reward opportunities, not easily accessible to many investors.
Our ability to co-invest alongside our Investors allows us to tailor our transactions to suit specific investor risk appetite and provide Investors the confidence of knowing Pearlfisher has capital at risk and works especially hard to secure positive outcomes from its investments.
Investment Structure
Investors are offered opportunities to participate in Facilities on a deal-by-deal basis which provides Investors with the flexibility to invest in transactions that match their investment/risk criteria and to suit their availability of capital at any given time.
Our Services
Pearlfisher Capital facilitates non-bank lending in the residential property development market, primarily through syndicated first and second mortgage loans. Jarden has also recently established an SPV to allow wholesale investors to co-invest in Pearlfisher’s transaction financing opportunities.
PFC’s services during the term of the Facility include, but are not limited to:
- Protection of the interests of individual Investors;
- Ongoing investment analysis and evaluation of risk;
- Financial management;
- Providing regular reporting to Investors;
- Maintaining the relationship with the Borrower and reporting on the performance of the Borrower’s obligations; and
- Maintaining a close relationship with professionals such as lawyers, quantity surveyors, valuers and real estate agents to assist with protecting the interests of Investor(s).
The risk profile and risk mitigation of each transaction will be represented through the return offered to Investors.
The return is transaction specific and reflects a significant premium over other property investment and fixed interest rate returns, commensurate with the assessed risk and market opportunity.
The experience gained by the Directors of Pearlfisher over the past 20 years in the property finance arena, has been invaluable in terms of assessing the continued change of market dynamics and positioning the business for changing opportunities.
Assessing Opportunities
The following is a list of some of the key considerations when assessing specific transactions:
- Nature of Security – what type of asset is it and what are the hurdles to repayment;
- Specific characteristics of the security – tenant covenant, lease term, resource consent, geotechnical and in ground risks;
- Quality of the contractor and appropriate terms and conditions within the construction contract;
- Covenant of the Borrower and their ability to meet their obligations;
- Exit provisions – term of the Facility and options surrounding take-out;
- Appropriate levels of pre-sales contracts; and
- Direct management by PFC.
PFC considers a wide range of property assets including both land and development assets at varying stages of the development and/or investment cycle.
The risk profile of these assets is property specific, assessed on a transaction-by-transaction basis, and is subject to meeting PFC’s credit criteria prior to being presented to Investors.
PFC targets transactions where the prime security is located in main centres including Auckland, Hamilton, Tauranga, Wellington, Christchurch and Queenstown, although some opportunities may be considered outside these locations on a selective basis.