Demand for warm, well-built housing remains strong, but keeping up the momentum required to build houses quickly and to a consistently high standard presents a challenge and an opportunity for the construction sector.
While growth in our property sector over the last decade has outstripped that experienced by many other categories, it’s estimated that New Zealand’s housing stock still fails to meet demand by around 70,000 homes.
To continue New Zealand’s growth trajectory, we need to continue to build quality homes – but to achieve this, the construction sector needs a dependable source of capital.
Under our current system, the ability of banks and finance companies to lend for residential building projects is constrained.
Classic Capital – a subsidiary of Classic Group is employing an innovative financing approach that allows houses to be built more quickly in order to meet market demand, while providing new, dynamic opportunities for smart investors.
Classic Group – building a better life for people, every day:
With a legacy spanning 25 years in the property sector, Classic Group is a kiwi success story that continues to unfold. And just as New Zealand has grown, Classic Group has grown too.
The groups’ journey of creating high quality housing for kiwis began in 1996, when Peter Cooney and Matt Lagerberg teamed up in the Bay of Plenty and created Classic Builders.
Back then, Peter was a self-described “salesman with an interest in property development”, while Matt was a skilled builder. The synergies between the skill sets proved to be successful when Peter secured a section, and Matt set about building a home.
Fast forward to the present day, and Classic Builders is amongst New Zealand’s largest residential construction companies. It’s also one of a diverse collection of businesses and partnerships under the banner of the Classic Group, all of which are determined to leave a positive mark on the world.
Whilst Classic Group HQ remains in Tauranga, the organisation has offices throughout the country. The growth of the business exemplifies NZ’s growth, and the numbers are impressive. putting its significant experience in residential and commercial builds and land development to good use to help New Zealand grow.
Classic Group now has more than 300 employees and has developed more than 4000 lots of land and built 6500 quality homes – including more than 700 in the last year alone.
Having successfully navigated fluctuating property cycles, a global financial crisis, and more recently the Covid-19 pandemic, Classic Group’s continuous commitment to innovation has been crucial to its success.
The group’s businesses – which span land development, commercial construction, fund investment, property syndication, technology development, health and safety – support each other through their respective areas of expertise.
Together, they’re striving towards a common goal: to build a better life for people, every day.
Classic Group is ready to meet the growing demand for high quality housing with a strong pipeline of land development and construction opportunities on the horizon
Current land supply exceeds 3000 sections, a number that is set to increase rapidly with the recent establishment of a $300 million dollar partnership with New Zealand Super Fund, Kaha Ake.
But secure funding is required to keep up the momentum in what is a cyclic industry, where supply and demand is governed by unpredictable economic, demographic, and social factors.
Smart solutions are required to circumvent the current limitations for retail banks. Classic Capital, Classic Group’s newest venture, represents just that and demonstrates the group’s commitment to diversify in order to maintain industry momentum.
Established in 2021, Classic Capital is a ‘people-centric’ property fund management business. It creates competitive opportunities for investors, and provides support that the Classic Group’s development and construction divisions need to keep building and keep New Zealand growing.
Classic Capital aims to be the best at what it does and have a positive impact on the people it partners with. Smart financing solutions like Classic Capital’s Land & Build Fund are a good example of this approach in action.
The Land & Build Fund supports residential housing projects to be delivered at pace around New Zealand, while offering qualifying investors an opportunity to earn a risk adjusted return through their indirect participation in first mortgage-backed loans.
Capital raised through the Land & Build Fund will be lent to Classic Builders-related companies for the sole purpose of building residential dwellings throughout New Zealand, meeting the significant demand in the market for quality homes.
Backed by the Classic Group’s experience and expertise, investors who partner with Classic Capital can enjoy a competitive return on investment. They can do so safe in the knowledge that they’re creating a positive impact, helping keep up momentum in the building sector so more kiwis can have a place they can call their own.
Phone Raymond Gatfield 029 222 0420 to speak about how we can assist with your property investment goals.