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Bluestone announces backing for Irongate Property Group
7 July 2010
Bluestone Group (“Bluestone”) has agreed to provide Irongate Properties Limited (‘Irongate’) with approximately NZ$45m in new funds in accordance with the terms of a new financing facility. The facility will enable Irongate to repay a retail debt series that is maturing in mid July. Bluestone has also agreed indicative terms for additional potential funding to assist Irongate in repositioning its property investment business and enhancing various properties within its portfolio.
Commenting on the transaction, Bluestone’s CEO, Peter McGuinness said “We are pleased to provide access to funds that will strengthen Irongate’s balance sheet, enable it to repay approximately $30m of bonds held by retail investors and provide a strong capital base to assist Irongate in repositioning its business”.
In providing the facilities, Bluestone successfully arranged financing from Värde Partners, Inc (“Värde”), a leading real estate investor based in Minneapolis, Minnesota, USA.
In 2008, Bluestone similarly financed with Värde the acquisition of a portfolio of auto loans, together with the operating assets of Provincial Finance (in receivership). Approximately 20 staff were offered employment with Bluestone Servicing, Bluestone’s mortgage and consumer finance administration business.
Bluestone’s Chairman, Alistair Jeffery said that the Irongate transaction marks an important milestone in the development of Bluestone’s operations. Bluestone Asset Management will provide high quality property and portfolio management services to both Irongate and, in the future, to other finance companies and acquired portfolios of assets. The business is being configured to manage large and complex portfolios and its activities will include workout and development projects in both residential and commercial property and associated loan assets.
Bluestone was advised by Grant Samuel.
About Bluestone
Bluestone was established in 2000 as a residential mortgage lender. The business has subsequently expanded into commercial lending, loan servicing and asset management, and now operates from offices in Australia, New Zealand and the UK. Bluestone manages a portfolio of $1.5bn residential, commercial and reverse mortgages, and consumer loans. Visit our web site at www.bluestone.co.uk.
About Värde
Värde is a leading investor in real estate, as well as various types of special situation opportunities, including corporate and consumer high yield debt. Established in 1993, Värde is based in Minneapolis, Minnesota USA with offices in London and Singapore. It has a 16-year track record in investing and resolving special situation investments. With over 145 staff, Värde has over US$7.0 billion in assets under management.
