For construction projects worth hundreds of millions, why is he their only choice for finance?

Plaxo Mortgages' fifteen years have passed through changing seasons, overcoming obstacles and moving forward through innovation. They have been fifteen eventful years of weathering challenges together, joining forces and building a shared future.

Looking back over those fifteen years, so many moments linger in the mind, and so many friendships remain close to the heart.

Among the warmest memories treasured by founder York Zhang (Zhang Yong) and everyone at Plaxo are the stories of working alongside longstanding clients they met in their early days, helping turn project after project from sketches into impressive buildings.

 

Staying true to the original vision and setting a benchmark in finance

The Victor waterfront apartment development in central Browns Bay is one of the 'babies' York personally helped develop and nurture. Now complete and ready to find its owners, the project owes an enormous debt to York and his Plaxo Mortgages team, according to project owner Victor:

York Zhang Yong leads the Plaxo team at a meeting in 2021

York and the Plaxo Mortgages team were involved throughout this project, from its inception to completion. At the outset, York brought his team into the feasibility study to analyse and discuss whether the project could be delivered. During implementation, York and the team worked tirelessly at every important milestone, promptly proposing solutions and improvements whenever issues arose.

The Victor Browns Bay Apartments

 

The development and construction of The Victor spanned the pandemic. The difficulties and disruption the pandemic brought to construction across New Zealand and worldwide need little explanation. As Victor says, York devoted himself wholeheartedly to The Victor. His expertise, experience and enthusiasm were key to the project's smooth progress and even its early completion. York, however, believes the credit belongs to the construction and management teams' professional capabilities, with his own contribution merely adding to their achievements.

From foundations to completion, York closely follows every stage of progress, providing clients with financial services of the highest professional standard

 

Apartment lending places particularly high demands on a loan manager's expertise, the developer's credentials and the assessment of supporting documents. To make the right decisions at the right time, a loan manager needs to understand the apartment construction process and the issues that can arise at each stage. They must know when funds are needed and understand drawdown procedures to avoid unnecessary mistakes. They also need to know what lenders focus on, preventing avoidable losses caused by inexperience and reducing time and financing costs.

The Victor Browns Bay Apartments

 

From the initial land purchase to final completion, the financing plan for The Victor was successfully delivered through York's detailed, step-by-step communication and negotiation with professionals at every stage. Apartment loan drawdowns, for example, have strict presale conditions: an individual may buy no more than 2 units, deposits of at least 10% must be paid upfront, and presales must exceed 50% of all units. For this project, however, York secured a presale requirement below 50%, greatly reducing the developer's presale pressure.

 

York's industry experience, his ability to manage risk and his extensive background in apartment construction were the main reasons I chose to work with him and Plaxo. They also distinguish Plaxo from other mortgage brokers. The Victor is worth nearly a hundred million, almost double the market value I originally planned. A project this large needs a mortgage broker you trust completely. It tests a loan manager's technical skills as well as their integrity and that of their team, so this is extremely important.

At the Plaxo Mortgages annual review meeting for 2019

 

Today, The Victor waterfront apartments are a Browns Bay landmark, incorporating local culture in a building that 'points the way to future living and stands as an icon'. This reflects the developer's original vision: if you undertake a project, make it a benchmark that leads local architectural design, setting the standard in construction quality, design taste and finishing details, and becoming a source of pride for the Chinese community. With every project it refines, York's Plaxo Mortgages team is also moving closer to its goal of becoming an industry benchmark.

 

Friends from the early days, proven through adversity

The Victor waterfront apartments are yet another project on which York has helped Victor. Over 15 years, they have worked together so often, on everything from apartment construction to buying a section, that neither can count their collaborations. Yet their first remains vivid:

In 2006, Victor was a small builder who had only recently entered the industry. York had joined a large finance company after graduating from university, but was determined to start his own business and make his mark. Plaxo was newly established, and everything was uncertain. The two ambitious, energetic young men immediately hit it off and decided to work together, building three standalone homes in Gulf Harbour and beginning a friendship lasting 16 years. Both are now over forty, their once-small businesses have grown, and their countless joint projects have witnessed and supported each other's development.

People often say friends should avoid talking about money because it can easily sour a friendship. Victor and York's collaborations have all revolved around lending, but fortunately every experience has been a happy one.

Whenever I need finance, York is the first person I think of. If you ask why, I cannot quite explain it. Perhaps it comes down to a word we Chinese often use: 'dependable'. Dependability matters, and York is very dependable. He takes responsibility, plans ahead and develops solutions for clients. I see that as a basic quality for anyone working in finance. He can also break through obstacles. Perhaps 80%–90% of financial products on the market are similar, but 20%–30% still have distinctive features. York can work through those special circumstances. Throughout our years of collaboration, nothing has stopped us: York always has more solutions than there are difficulties.

Victor's high regard for York comes from the dependability he has shown in every collaboration.

Victor recalls that this pandemic was not the first time York had helped him through difficulties. During the financial crisis in 2008, Victor developed a rest home project with York's assistance. 'That was a particularly difficult time and project,' he remembers. 'York stood out for his keen observations and distinctive understanding of the products. He closely connected his own business with his clients' businesses, and brought finance providers and developers together. We all worked together, and adversity revealed his true character. That is one reason I hold him in such high regard and remain firmly committed to working with him.'

To see further, climb higher

Time flies, and more than a decade has passed in the blink of an eye. Victor and York's countless collaborations have become one successful project after another. Their final outcomes differ, but all stem from the same mindset and principles: an inner drive to pursue the very best in product design, quality and other essentials.

Victor's achievements stand firmly on the ground, visible and tangible. York's live in the recommendations of every client.

Having worked alongside York and Plaxo throughout their journey, Victor believes that over 15 years, Plaxo's respect for clients, determination and commitment to comprehensive service have never changed at their core. Its success has been built through accumulated effort, one step at a time. The reliability, innovation and focus on clients that Plaxo has consistently upheld are immensely valuable to its customers.

Victor believes trust is the most valuable asset in finance.

For developers, banks and finance companies generally add value when things are going well. Plaxo is different. For longstanding partners like us, York offers that support and also comes to our aid when we need it most.

At the end of the interview, Victor used a line of poetry to express his hopes for York and Plaxo Mortgages: To see further, climb higher. Victor says the aspiration expressed in this poem is one that a business should continually pursue. From a client's perspective, after more than a decade of hard work, Plaxo now has a strong team, an excellent service ethos and a large client base. He hopes it will develop its own financial products in future, creating offerings that fill gaps in the market.

Project photographs in this article courtesy of Mark Scowen Photography