NZ Urban Development news from the media | 11 Feb | KiwiBuild stock take: Govt currently $26 million out of pocket buying and selling KiwiBuild houses


Hi *|FNAME|*, Please find below Urban Development News from the media from the week of 11 February 2020.

Provided by Rockhopper Development Advisory

KiwiBuild stock take: Govt currently $26 million out of pocket buying and selling KiwiBuild houses

There are $26 million of unsold KiwiBuild houses on the Government's books, according to figures provided to by Kāinga Ora.

The Crown has spent $59 million buying 90 KiwiBuild houses it contracted to be built on the basis it would buy them upfront, and 47 houses it had to buy because they weren’t selling. It has received $33 million for on-selling 72 of these houses.

So the Crown is currently $26 million out of pocket. This will change as houses are bought and sold. 

The Government had, from the launch of KiwiBuild, allocated $2 billion towards the programme, with the idea that money spent would be recycled as houses sold and the proceeds were reinvested.

Investors in hot demand for shared ownership of commercial properties

Investors are in hot demand with several large shared commercial property ownership schemes on offer as the new 2020 year swings into action.

A $215 million property portfolio of prime industrial, office and retail properties in Hamilton,Tauranga and Mount Manganui has been launched by well-established Queenstown-based syndicators Mitchell Mackersy.

The minimum investment is $100,000 to "wholesale/eligible" investors, who are experienced or high net worth investors, defined in the Financial Markets Conduct Act, to raise $120m of equity for the purchase of the portfolio. Forecast gross returns are 6.5 per cent. 

A large Wellington Government-tenanted office building valued at $77m is being offered in a shared ownership scheme by experienced syndicators Oyster Group.

OIO consents Chinese-owned company's 175-unit Auckland apartment development

The Overseas Investment Office has approved plans by a Chinese-owned company to build a 175-unit apartment complex in Auckland's Browns Bay.

The office, which assessed applications from overseas investors, granted consent to New Zealand-registered company Since20181 Development Limited in December to purchase three plots of land for $5.8 million in the North Shore suburb to develop.

Since20181 proposed to build at least 175 residential units, with at least 80 apartments.

Proposed 'grand' hotel on Glenorchy lakefront could cost $20m

A developer proposing a "grand" lakefront hotel for a high-profile lake-front site in Glenorchy is behind several projects planned for the small Otago town.

Doug Rikard-Bell has applied to the Queenstown Lakes District Council to build and operate the 64-room Grand Mount Earnslaw Hotel on the site of the former Mt Earnslaw Hotel, which burned to the ground in 1959. He paid $2.5m for the 8079sqm site.

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