News } TBK Capital

Borrowing and investing post lockdown

A recent one, as reported in Stuff, says “Here's why things are looking up for the New Zealand economy” which reflects his (and my) opinion that “Our economy is bouncing back, courtesy of good control of the Covid-19 outbreak in New Zealand, high flexibility in our economy, and more”.

May your hands always be busy,
May your feet always be swift,
May you have a strong foundation,
When the winds of changes shift.

Bob Dylan – Forever Young

For many years I’ve been an avid reader of Tony Alexander’s publications. To subscribe to these sign up here.

A recent one, as reported in Stuff, says “Here's why things are looking up for the New Zealand economy” which reflects his (and my) opinion that “Our economy is bouncing back, courtesy of good control of the Covid-19 outbreak in New Zealand, high flexibility in our economy, and more”.

And in another newsletter on New Zealand’s housing markets, Tony notes that since 1996, the New Zealand population has grown by 33% with Auckland by 51%. Even places like Nelson have grown 30%. And reflecting this growth, in the three months to last August the average house prices for all New Zealand were ahead 8.8% from a year ago, and even Nelson was ahead 6.2%.

Yes the housing market still has heat in it. But according to my wife, who’s been a residential real estate agent in the industry for many years, and is never wrong about anything, while it’s a seller’s market buyers are selective.
Finance for property

Houses have always been the easiest source of finance. This is a huge business for the banks. A recent article by David Hargreaves headlines the “Latest Reserve Bank monthly mortgage figures show over $7.3 bln advanced for mortgages last month”.

However in Tony Alexander’s latest newsletter, his survey amongst mortgage advisers included the headline “Buyers Frantic, Banks Tough”. Maybe we’re about to see some changes? Well if there are any, at TBK Capital we’ve got plenty of other sources.

Probably the most property finance we’ve arranged at TBK Capital is for residential subdivision and developments. And there have been and still are plenty of these. Most of the other finance arranged is for commercial and industrial properties, and for businesses where their underlying asset - from a lenders point of view - is the land and building themselves. But see below.

Anyway - if you’re looking for any form of debt finance for property - don’t forget to call or email me. There are plenty of lenders out there offering very competitive rates.
Sources of debt and equity for SMEs

I’ve given my view on raising funds for businesses on numerous occasions, so I was particularly pleased to see Tony Alexander’s comment that “All up, there is a directional and attitude shift under way in New Zealand right now which is likely to slowly encourage banks to ease their newly tight rules for lending to businesses, at the same time as businesses restart their capital spending plans through 2021”.

It’s clear that obtaining bank finance is not hard if you’ve got a house, or you own the premises from which you operate. And while over the years residential prices may have had their ups and downs, this remains the primary source of finance for owners of SMEs.

For obvious reasons, not the least being banks’ preference for residential lending, supported by every government’s realisation that housing policy is a key in getting or remaining in power, owning a house is the best, cheapest and easiest way to attract finance for SMEs.

Meanwhile I’ve got a number of business clients who have contacted TBK Capital for the very reason that their banks are not interested in offering debt finance unless property security is also available. And yes we do that too.

However a recent survey by Tony Alexander amongst mortgage advisers raising money for housing has the headline “Buyers Frantic, Banks Tough”.  Combine this with the almost non-existent sources of capital for expanding businesses and it’s not surprising that we’ve got numerous request for funds.
Investment opportunities

Of course the other side of the demand for debt or equity finance for business or property, is the opportunities it provides for people who are looking for a better return on their money than leaving it in the bank. And if you’re looking at bank term deposits for a return on your funds, that is not at all heartening.

But there are some other lenders, including finance companies that do offer higher rates. There is too large a number of these to list here, and rates are constantly changing, so if this is of interest call me on +64 21 902 901 or email me at

Over the many years I’ve been in the investment banking business, and as a reader of my newsletters you will know, there are ways of getting an excellent return on your money by “investing” in property developments and subdivisions or in new or expanding businesses here.  These “investments” can take a number of forms including loans or shares or similar equity instruments.

Many of those of our clients seeking investors you can see on our website. But there are others not there yet, but for whom we’re mandated and in the process of compiling the Offer.
Available now

For example one of our clients is in the business, with stock on hand ready to sell now, and with buyers for it. This is a spinoff from an established business and brand in the wine industry. It’s looking for aggressive expansion by/and/or acquisition of, or merger with, a similar businesses.

The owners are now looking for the initial working capital round towards growing it into an international business with an IPO in 3 years’ time. It’s offering up to 49% of the shares in a new company just formed to accomplish this. For further information and a copy of their IM reply this email - and please include your phone number.

In any event I’m always happy to hear from you and if you’d like to comment on the matters raised in our newsletters. Or of course if you’re looking to raise debt or equity for business or property, or would like to invest in either.

The best way to keep in contact is by phone +64 21 902 901, or email me at

Any reference above to investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.


John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10, 120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901

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