New player looks to cash in on slump

A new real estate business has been formed to buy properties at what it sees should be the bottom of the market.

While most listed property entities are quitting real estate fast, two Wellington-based executives are aiming to have real estate assets worth up to $50 million by the end of this year.

Troy Bowker and Matt Fraser have formed Caniwi Capital Partners, a firm specialising in commercial property.

It has just bought properties in New Zealand worth $16.5 million and is about to almost double that portfolio if it completes a contract to buy a large Auckland property.

Bowker said the recession meant now was the best time to buy real estate.

"It's a difficult judgment call picking the bottom of the market but the gap between financing costs and returns available for asset classes such as commercial property and private equity are now at a level where it makes sense to invest," he said.

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Posted: 15 Jul 2009

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