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Overview

Bank of China provides loan to Precision Group for acquisition of Shore City Shopping Centre

Commitments (Constant USD, 2023)$47,868,264
Commitment Year•2016Country of Activity•New ZealandDirect Recipient Country of Incorporation•AustraliaOverseas Jurisdiction•New ZealandSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2016
Start (actual)
May 1, 2016
End (actual)
May 1, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Precision Group of Companies Pty Ltd

Loan description

Bank of China provides loan to Precision Group for acquisition of Shore City Shopping Centre

Interest type•Unknown

Narrative

Full Description

Project narrative

In May 2016, the Auckland Branch of Bank of China (BOC) issued a loan to the Precision Group — an Australian private property investment and management company — for the acquisition of the Shore City Shopping Centre. Precision Group paid over $90 million NZD ($81 million USD) to purchase Shore City from Aviva Investors Asia Property Fund; the deal was completed in late May 2016. Shore City, located in Takapuna, Auckland, is situated on almost an entire city block of Auckland's North Share and consists of a mall with 14,139 square meters of gross lettable area, including a Farmers department store, a Les Mills International Fitness Centre, and 74 specialty shops with a food court and an adjoining 850 multi-level parking garage on a 1.2 hectare site. This was Precision Group's first purchase in New Zealand.

Staff comments

1. The face value of the M&A loan from Bank of China is unknown. However, given that the total cost of the acquisition was $90 million NZD and M&A loans often cover 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the loan was roughly equivalent to $63 million NZD. This issue warrants further investigation.