Precinct launches multi-unit residential development business with Lamont & Co.
11 January 2023
We are pleased to announce our entry into the multi-unit residential development market. We have joined forces with brothers Tim and Andrew Lamont, founders of the Auckland based private equity real estate developer Lamont & Co.
The multi-unit residential development business will be jointly owned by Precinct and Lamont & Co and will focus on the delivery of high-quality multi-unit residential development initially in Central Auckland.
“Entering the multi-unit residential market is a natural extension for Precinct,” CEO Scott Pritchard said. “As New Zealand’s largest owner and developer of high-density city centre commercial property, and with a core strategy focused on mixed-use precincts, residential will complement our overall strategic direction and provide further competitive advantage.”
“We are excited to be working alongside the successful and experienced team of Tim and Andrew Lamont. The track record they have in delivering successful, high quality multi-unit residential development, alongside our management expertise, scale and access to capital is something unique in a currently fragmented build-to-sell multi-unit residential market.
“We have considered a residential development strategy for a number of years, and we feel now is an opportune time. The current challenging market represents an ideal entry opportunity, with a greater range of good quality sites available and less competition than in a strong market.
“It’s been clear in our discussions with Tim and Andrew that there was a shared view on the market opportunity, along with a shared value set. The new business will continue the delivery of Lamont and Co’s existing portfolio, as well as identifying and originating new development opportunities,”.
“We are delighted at the opportunity to build on the successful business we have established over the last nine years, through working with Precinct,” Tim Lamont said.
“The ability to leverage Precinct’s in-house expertise across a range of fields provides scope to grow within the residential market, an exciting opportunity for both parties.”
Precinct will not be initially investing in Lamont’s existing projects; however, we expect to participate in future developments alongside other capital partners.
The launch of this business is a further extension of our capital partnering strategy, utilising access to additional capital from a different investor base to deliver alternative fee streams and drive higher returns for investors.