Toru Apartments 



  New Ground Capital Limited  

This offer is being made to you under the terms of Schedule 1 of the Financial Markets Conduct Act 2013 which require that you are a “Wholesale Investor”. The Manager reserves the right to amend the eligibility criteria under this Offer if required to as a result of regulations made after the date of publication of this Offer under the Financial Markets Conduct Act 2013.


1.    Outline

New Ground Capital Limited (NGC) offers qualifying wholesale investors the opportunity to invest in a large-scale apartment development already under construction in Queenstown.

This 236-apartment project in Remarkables Park is being developed in response to the overwhelming demand for affordable housing and good quality, well-located rental housing.

The development entity, New Ground Living (Remarkables Park) LP has resource consent and Naylor Love started construction of the first of three buildings in April 2019.

The development includes a mix of relatively affordable units for open market sale and apartments that will be retained by the development entity for leasing to employers and individual households.

2.    The Developers

NGC has pioneered the establishment of build-to-rent (multifamily) housing in New Zealand since 2014. Over the last four years NGC has initiated the development of over 490 homes in Auckland and Queenstown, see

NGC’s property management arm, New Ground Living, offers a radically different rental proposition in the NZ market, offering purpose-built rental houses that are modern and healthy to live in, on lease terms of between 3 and 7 years, providing all important security of tenure, see

3.    Market Dynamics

Queenstown is the most highly-regarded four season resort town in the Southern Hemisphere; an iconic international destination renowned for stunning scenery, incredible activities and amazing culinary experiences.

With over 3.3 million visitors each year and an annual spend of $2.2 billion, the Queenstown economy is driven by tourism. The local property market has enjoyed strong, consistent capital growth with an ever-increasing demand for accommodation for these visitors and the growing number of locals who support this booming industry. Toru aims to satisfy the demand for affordable housing and long-term rental accommodation.

  • Queenstown Lakes District grew at 6.4% in 2018 vs national growth of 3.2%
  • Queenstown guest nights surpassed 5.3 million in 2018
  • Very few new affordable developments have come to the market in recent years
  • Acute shortage of visitor and residential accommodation to meet demand

4.    Key Investment Highlights

The funding for stage 1 and 2 (East and Central buildings respectively) of the development was originally structured on the assumption that the LP would retain the Central building and sell down the East and West buildings.

However, with rental demand and rates rising strongly in the Queenstown market over recent times, the LP now wishes to have the option to retain the West building, requiring replacement of the mezzanine lending facility with additional equity to enable this optionality. The LP is therefore doubling the equity in the project by raising up to a further $15,000,000 from existing Limited Partners and new qualifying wholesale investors. $6,125,000 was committed by new and existing LPs on a first close on 26 April 2019, with a maximum of $8,875,000 remaining available as of 10 May 2019.

5.    Key Impact Highlights


The challenges facing both renting households and local employers from the lack of good quality rental housing is well documented through the media, particularly in respect to accommodation shortages, overcrowding and unhealthy living conditions. We believe that the addition of these 236 additional apartments, most of which will be utilised for housing the district’s long-term residents and lower income workforce, will represent a meaningful contribution toward these issues. We will also be making rental units available to households on lease terms of up to 7 years, thus providing much needed security of tenure to the district’s long-term renting families.


Queenstown, like many popular tourist locations around the world, is suffering from urban sprawl, with much of the low-lying land around the Wakatipu basin now being developed for low density housing. We believe that Toru Apartments will show that, whilst not easily achieved, good quality higher-density living options are achievable within the district, resulting in optimal use of land and infrastructure.


Through the Toru Apartments development, we will be demonstrating that it is possible for investors to achieve attractive long-term rental income returns from investment in housing, as distinct from the historical focus in this country on capital gains alone. We hope that over time this recognition will help lead to a more mature rental market where good tenants and good landlords are equally valued by each other.

Issue Type:
isEOI: true

Investment Details

Investment Type: Wholesale

Transaction Size:NZD 15,000,000.00

Committed Capital:NZD 6,125,000.00

Pre-money valuation: 

Minimum Capital Raise: 

Share Price:NZD 0.00

Unit Price:NZD 1.00

Minimum Investment Size: 


New Ground Living



Phone:0800 783 043

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New Ground Capital Limited

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