Buddle Findlay acts for Bank of New Zealand on project financing of the Mount Cardrona Station Resort's water treatment plant and residential development
21 February 2023
Buddle Findlay is delighted to have acted for Bank of New Zealand on the project financing of the Mount Cardrona Station Resort's water treatment plant and the subsequent residential development.
This transaction showcases an innovative financing solution, via a public private collaboration. The structure allowed for the development of the water plant with the private sector developer retaining the risks associated with development and construction of the project while providing the Queenstown Lakes District Council with ultimate ownership and control of the scheme following practical completion. The project not only allows the Queenstown Lakes District Council to improve three waters infrastructure in a more cost effective and timely manner, providing an improved environmental outcome for the region, but in conjunction with the development financing, enables local land owners, such as Mt Cardrona Station, to accelerate development capacity in the area and increase housing supply for the community. The $650m alpine village development being undertaken by Mt Cardrona Station Village has been described as 'the first of its kind' in New Zealand - developing 400 lots over the next ten years.
The project financing team was led by Partner Peter Owles and Senior Associate Danielle Brittain, and the development financing team was led by Partner Paul Farrugia, assisted by Senior Solicitor Jennifer Seo and Solicitor Samuel Andrew. Susan Lucking and James Grant led the development and specialised finance teams at Bank of New Zealand. Buddle Findlay worked closely with Emma Kerr and Robert Huse at Anderson Lloyd, acting as lead counsel for the borrower.