Chow-backed Inno Capital buys AFS Total Fire Protection out of receivership

Friday 16th December 2016

Inno Capital, the investment vehicle part-owned by Wellington property developers the Chow brothers, has bought fire services company AFS Total Fire Protection out of receivership, and says it wants turn the company around as it did Stonewood Homes.

The company reached an agreement with receivers Damien Grant and Steven Khov to acquire AFS's assets for an undisclosed sum after the Inland Revenue Department said it would seek to liquidate the company. Inno bought AFS's bank debt earlier in the year but "took action to protect its loan" by appointing the receivers, it said.

AFS manages fire sprinkler and alarm systems for clients including AMP, Auckland Transport and DHL, and employs more than 50 staff. John Chow said no job guarantees would be made until Inno has fully reviewed the company's books and processes.

Director Clint Webber said it had been important to act with urgency for AFS's clients, and the deal had saved not only jobs but potentially buildings.

"If we'd let the company go into liquidation a lot of businesses would have been left with an uncertain fire protection and monitoring service over the summer period," Webber said. "Given the nature of this industry sector there was a strong imperative to act in a corporately responsible way and I can assure all AFS clients right now that the business will continue without interruption."

John Chow said Inno wants to "bring AFS back as a major player in the fire protection services industry". AFS's assets have been acquired by a new company, Stonewood Fire Services.

In March, Inno bought the national franchise rights and Christchurch franchisee for Stonewood for an undisclosed sum just two weeks after receivers were appointed to the country's third biggest home builder, with subsequent receivers' reports showing the assets were sold for $3.4 million. Christchurch-based Stonewood had appointed receivers owing creditors about $15 million, raising fears about what the firm's failure would do to the Canterbury rebuild.

Inno is better known as a non-bank lender and has been involved in a number of property developments, but also seeks out both equity and debt investment opportunities. The firm is a separate entity from the Chow brothers' NZAX-listed Chow Group, which owns several properties separate to their wider empire.

BusinessDesk.co.nz

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