LOS ANGELES, CA - Jumpstart Capital, LLC., a real estate investment company based in Los Angeles, today announced plans to launch a US$100 million closed-end opportunity fund to capitalize on distressed and under-valued real estate assets in New Zealand.
Jumpstart Capital Asset Management (NZF I) LLC. (the "Fund"), will acquire real estate and real estate related assets, and invest in select land development projects, that demonstrate strong market fundamentals, long-term capital growth and superior risk-adjusted returns.
The Fund has already secured an anchor investment that comprises a majority stakeholding in a prominent resort/master-planned community development situated in one of the world's most stunning locations and the fastest growing region in Australasia. The portfolio of prime commercial and residential property is conservatively projected to deliver a Net IRR upward of 40% over 5 years.
"This transaction was several years in the making and all about timing and synergy" says Jumpstart Capital CEO Jason M. Neal, a seasoned entrepreneur with more than 20 years industry experience in the United States and New Zealand. "It represents a risk-averse opportunity and important step in our longer-term investment strategy".
New Zealand has not been immune to the global credit crisis and tightening supply of credit. However, when compared to the United States and Europe this country of 4 million people has held its composure and is well positioned for a resurgence of strong domestic and foreign investment and sustained economic growth. Which is expected to translate into strong capital growth within the real estate sector.
"Fund managers in the United States and Europe are scrambling in a competitive environment to raise capital for domestic real estate transactions that may not be profitable for years because of wider economic and political implications" says Neal. "Smart money is now being invested in countries that offer resilient stable economies, attractive foreign investment and tax policies, and can be classed as safe havens. New Zealand is one of the few countries that fit this profile".
Jumpstart Capital has secured exclusive rights to participate off-market and at wholesale valuations in other resort and master planned communities in New Zealand. Alternatively, the Fund plans to acquire primarily income producing distressed assets in select locations.
"A key to our success in New Zealand is aligning strategically with established local operators that have vast experience and a proven track-record" says Neal. "We have accomplished this and now look forward to launching the Fund and capitalizing on very unique opportunities".
Jumpstart Capital Partners is a privately-held real estate investment company based in Los Angeles, California, established to invest and manage private equity capital on behalf of institutional and high net worth investors. The company invests in high-quality real estate, real estate-related assets and select land development projects that offer clients superior risk-adjusted returns.
Source: Jumpstart Capital Partners