Stonewood Homes And Key Family Join Forces In $100M Capital Raising Venture
Family property development company, MTK Capital, led by former Prime Minister Sir John Key and his son Max, have formed a partnership with Stonewood Group to form Stonewood Key Capital.
The joint venture is focused on raising capital from wholesale investors, with a goal of reaching $100 million within 18 months.
The $20 million already pledged is earmarked for projects under development in a variety of locations including St Heliers, Glenn Innes and Wai O Taiki Bay.
Stonewood Group director John Chow, co-owner of national group home builder Stonewood Homes, said lack of land continues to be central to New Zealand’s housing crisis.
“This business is about helping raise funds to buy more land and keep pace with the demand for new homes across New Zealand, while also providing an investment opportunity for those interested in residential real estate.”
Stonewood Key Capital will fund up to 500 development homes each year across New Zealand.
Construction projects will be able to draw upon Stonewood Homes’ existing procurement agreements with suppliers, with work channelled through its 19-strong national franchise network as primary builders of choice. This is additional to the 500 new homes a year Stonewood currently builds.
“Partnering with Max and John Key adds a new dimension to Stonewood Group and is an exciting new chapter in our businesses development,” said John Chow. “I’m very impressed by their vision and drive.”
Sir John Key said he has always had a passion for real estate investment and viewed it as an extremely sound asset class in a growing country like New Zealand, which has long-term migration needs.
“New Zealand, with its property-owning democracy and historically strong migration patterns makes property development a sought-after asset class.”
He said he had known the Chow family for a long period of time and respected their business acumen, attention to detail and work ethic.
MTK Capital’s CEO, Max Key, has led several successful developments in recent years. He said the partnership is a way to turbo-charge the company’s residential development interests, while providing homes and investment opportunities for a wider group of Kiwis.
“Stonewood Homes’ proven track record, know-how in the new build space and its procurement strength means Stonewood Key Capital can really hit the ground running.”
The directors of Stonewood Key Capital are Max Key and Stonewood Group director Steven Zhu, with John Key and John Chow being both investors in projects and advisors to the business.