John Chow, left, Clint Webber and Michael Chow celebrated the launch of Inno Capital last month.
Millionaire property magnates the Chow brothers are planning to shake up the property finance sector by funding deals of up to $50 million.
John and Michael Chow have teamed up with Webber Capital founder Clint Webber to launch a finance company – Inno Capital – which has already attracted interest from at least six parties.
Michael Chow said the focus was on funding deals with some perceived risk, but with solid returns for the developer and their funders.
“John and I have not made our wealth through taking a conservative approach to life. We take calculated risks and are prepared to wait around for the right deal at the right time, then back it ’til completion no matter what hurdles are put in the way.”
“We launched Inno Capital because there are many other property investors and developers like us, who have an eye for a great deal, but unlike us, they just do not have the capital to complete the project.”
The brothers, who have made an estimated $75m fortune from brothels, hotels and commercial property deals, currently manage an 18-strong property portfolio valued over $200m which includes The Mermaid strip club and Capital Market food court in Wellington.
They would say ‘yes’ to investments that the bank said ‘no’ too, Chow said.
“Mainstream banks cannot think outside of their strict lending guidelines but we can and we have taken over deals from lenders that have become nervous because of project delays.
“We don’t mind delays, as long as the end result is something we want to back.”
Inno Capital will fund projects from $500,000 to $50m but if a project calls for extra funding, the company has partnerships with international funders who can undertake joint-venture financing.
Chow believed their team, including Webber, were “highly skilled” at deciding what projects to back.
“We don’t just limit approvals to property deals, but we understand and like property so it’s fair to say that most deals we say yes to are property-related.”
The Chow brothers were excited about the future of Inno Capital, as they saw a gap in the market for more capital funding, he said.
“The returns made from deals already re-paid are such that we now have a whole lot more money to lend.
“It seems we have got the balance between risk and return right, so we can’t wait to see what deals 2016 brings us.”
In November, the brothers bought listed shell company, RIS Group, to list their $200m portfolio.
Current funding projects:
– Southport Towers, Queensland, Australia
– The Hilton, Queenstown
– Sofitel Hotel, Auckland
– The Lakes subdivision, Tauranga
– Peppers Resort, Lake Tekapo
– Swiss-Belresort Coronet Peak, Queenstown
– Stuff