McConnell Funds Management operates in a specific part of the property market. The following diagram provides an example of the risk/return which might generally be provided by investments in the property market, based on five different levels of property related risk.
We believe that the best returns often come from strategically acquiring property, adding value to it, then by maximising the Group expertise and experience, McConnell Funds Management can deliver superior returns to investors.
Over time we intend to establish investment funds across a range of risk/return profiles for both wholesale and retail investors. Our long term focus is to deliver superior returns relative to the risk taken along with outstanding service to our clients.
We will protect our investments by providing quality asset management.
McConnell Funds Management has been established based on the following set of principles:
- That adding value through development or project management activities, followed by the sale of the asset often provides higher returns compared to a buy and hold strategy.
- That to maximise property returns, equal consideration is given to each of the acquisition, project management and disposal stages.
- That no property investment should ever be regarded as “passive”.
- That many traditional property investment funds underperform as the investment cycle often encourages assets to be acquired when the greatest level of investment funding is available and often sold when investors and funders seek repayment. This can result in assets being acquired when they are overpriced and sold when they are underpriced.
- That attractive opportunities have been created by the current state of investment markets.
- That the property fund managers remuneration should be substantially based on the performance of the assets.
- That the owners of the Fund Manager will invest in the fund on the same terms and conditions as the investors.
McConnell Funds Management is committed to the highest level of corporate governance and have established a strong board which will oversee existing projects, potential new projects, the operation of the funds management platform and the expansion and growth of the business.
An Investment Review Committee comprising senior management will meet monthly. This committee will make recommendations to the board of each fund regarding all transactions undertaken and the performance of each of the investment projects.
Working with McConnell Group gives access to strong corporate governance procedures and a group of New Zealand’s most experienced company directors. Processes include independent approval for related party transactions, external audits and a strong corporate culture of responsibility for investors' interests.
McConnell Funds Management is managed by a small, tightly focused team with a wealth of investment experience in New Zealand and overseas. Working for both large investment institutions and boutique private equity firms, the team have held positions responsible for many billions of dollars.
John McConnell, Director-McConnell Group
Nigel Richards, General Manager, McConnell Property
Treena Patterson, Commercial Manager
McConnell Property, through McConnell Property Services will provide the Fund with expertise and experience in project evaluation, project management and development management. McConnell Property has been involved in creating great places to live and work over the past decade. To read more about the projects and the investment behind them, download the case studies by right clicking and choosing save as:
Highbrook (business park)
Ascot Central (specialist medical building)
McClennan (housing New Zealand)
Addison (residential development)
Anselmi Ridge (residential devlopment)
Ascot Parade (business quarter)
Titanium Park (Hamilton airport)
Trinity Apartments (residential apartments)
For more information on McConnell Property visit the McConnell Property website.
For more information on the other companies in the McConnell Group, visit the McConnell Group website.
The McConnell Group, consisting of McConnell Property, Hawkins Construction and Steelpipe, is one of New Zealand’s largest privately owned construction, property and infrastructure groups.
With an annual turnover approaching $600 million McConnell Group plays a key role in New Zealand’s property development market and enables McConnell Funds Management to call on significant expertise across all facets of development. www.mcconnellgroup.co.nz
The extensive networks of the McConnell Group are an important source of development opportunities for the McConnell Real Estate Opportunity Fund.
