CABERNET CAPITAL LIMITED
Cabernet Capital Limited undertakes Capital Raising and Project Funding, primarily within the Construction and Property Development Sectors, often for projects undertaken by Wharepuni Developments Limited and Luxwood Homes NZ Limited.
In general, the minimum quantum of funding sourced by Cabernet Capital is NZ$1.0m. In relation to projects undertaken by Wharepuni and Luxwood, utilising Luxwood’s polymer panel system, the minimum quantum is (generally) NZ$10.0m.
In many instances, we have in effect rescued a project which was indeed well structured, with robust take-out, and strong build contracts etc, but which trading banks would not fund. In these instances, by introducing our Luxwood build system and its associated funding into the project, we have facilitated the completion of a successful project. (However, in some instances we have been unable to restructure and thus “rescue” the project, because the pre-sale contracts in place could not be modified to reflect the Luxwood system).
Cabernet Capital accepts only engagements via an irrevocable, fully exclusive mandate. We have no interest whatsoever in engagement on a non-exclusive basis, or when we doubt the integrity, and/ or professionalism of the prospective client. For this reason alone, we decline far more engagements than we accept.
In general, the minimum fee is 2.0% of capital raised, though discounting does occur in relation to very large capital raising assignments.
Our fee is success based; if we are unsuccessful in raising capital (we seldom are), no fee is payable. (Notwithstanding, some nominal disbursements may be payable).
If in the process of preparing offer documentation pertaining to a capital raising, the Group’s corporate advisory services are required, a negotiated fee is payable, irrespective of result. Such corporate advisory functions – generally financial modelling, quantity surveying, project appraisal, valuation, and such like – are undertaken by the Cohasset Group Limited.
Additionally, occasionally a project requires a co-ordinating project manager, even if only to the extent of liaising with project personnel, including solicitors, engineers, planners, constructors, et al. In such instances, the Cohasset Group often accepts appointment, in addition to Cabernet Capital. In such instances, Cohasset’s fee may be of a fixed nature, or time and cost.
We generally don’t undertake “short-form” capital raising assignments. We let mortgage brokers occupy that space. In every instance, we insist on preparing a comprehensive Information Memorandum for presentation to funders and investors. That Information Memorandum comprises – amongst other components – detailed costings and sensitivity analysis, a scheme plan, evidence of compliance (Resource Management Act, and Building Act), projected sales revenue supporting evidence, and a brief CV in respect of key personnel.
In the instances whereby our clever team has produced an artistic presentation of the project, that is included in the Information Memorandum. The background artwork to this web site is one such artistic presentation.
The “Gallery” page of this web site includes photos and artistic presentations in relation to some of our previous projects.
The origin of the name “Cabernet Capital” is often asked. The name reflects the company’s roots; the beautiful wine region, Hawkes Bay.