Plans for the new solar-powered Sunfield at Papakura by Winton.
Plans for the new solar-powered Sunfield at Papakura by Winton.
NZX-listed Winton Land chief executive and chairman Chris Meehan told shareholders today that a $138.5 million court claim had been lodged by the company against a state agency which refused special zoning for the 5000-home Sunfield estate in South Auckland.
But he also welcomed National’s election victory asgood for housing, telling shareholders at today’s AGM in Auckland, saying policies of the incoming National-led Government would be generally good for housing development and housing demand.
But Kāinga Ora’s refusal of Winton’s plans for Sunfield at Papakura sparked the huge court claim, yet to be heard.
“An amended statement of claim was filed in the Auckland High Court in July to include the provisionally independently assessed amount of $138.5m in damages plus costs and interest, which represents Winton’s view as to the quantum of the loss and damages it has suffered as a result of Kāinga Ora’s alleged anti-competitive conduct,” Meehan said.
“Winton is seeking court declarations that Kāinga Ora’s conduct is unlawful and in breach of the Commerce Act and an order requiring Kāinga Ora to consider Sunfield for assessment under the Urban Development Act, as well as substantial damages for Kāinga Ora’s conduct to date,” he said.
Ex-Housing Minister Megan Woods said Sunfield would not be considered under the act. Photo / Mark Mitchell
Consenting Sunfield would be good for Winton but also for Auckland, Meehan said. It would create 11,000 jobs and more than 3643 affordable homes as part of the 5000-home scheme.
“We remain firm in our resolve to re-zone the entire Sunfield as it is currently master-planned,” Meehan said.
Outgoing Housing Minister Megan Woods rejected special fast-tracking treatment for the planned new 5000-home Sunfield South Auckland development, the Herald reported last April.
She told Winton its application for Kāinga Ora to assess the project under the Urban Development Act had been declined. She wrote to Meehan saying ministers of finance and housing would not direct Kāinga Ora to undertake a project assessment of the Papakura scheme as a special development project.
The need to avoid adding further pressure to already constrained government resources and Treaty of Waitangi interests were cited in the rejection.
“We consider that on balance, the benefits a direction to assess could provide would be outweighed by the impact on other Government priorities,” Woods said.
The decision was influenced by two aspects: the need to ensure the decision was exercised consistently with the purposes of the Urban Development Act and Treaty of Waitangi principles, Woods told Meehan.
Winton Land's Julian Cook and Chris Meehan inside the new $4m display suite on Beaumont St. Photo / Dean Purcell
The act aims to tackle long-term barriers to urban development by allowing access to a streamlined approval process for special types of complex and transformative development projects.
“The advice we received from officials is that there is a pipeline of projected development through spatial and strategic partnerships that are being considered by Kāinga Ora for potential selection and assessment under SDPs, some of which could be selected soon,” Woods told Meehan on the issue previously.
At today’s AGM, shareholder Donal Curtin asked Meehan if Sunfield didn’t get the approval, how much money was at risk. Meehan said none because already, 50ha could be developed as part of that site.
Meehan told shareholders that although the company would not issue formal guidance for the year to June 2024, last year’s results were the culmination of years of development and a standout year for settlements, with 565 residential units sold.
Winton's plans for the solar-powered Sunfield in South Auckland.
In the June 30, 2023 year, the company had settled the sale of 565 residential units and delivered $211.5m in total revenue, he said.
That was lower than the $344m forecast due to bad weather conditions delaying some projects’ completion into this current year.
Gross profit was $108.7m which was $36.3m above 2022, resulting in a gross profit margin of 51.4 per cent. Winton met earnings expectations at the lower end of guidance at $73.8m.
New Zealand’s housing market had faced problems in the past 18 months but there were signs it had stabilised and was beginning to show signs of recovery, Meehan said.
Despite increasing demand, building consents and construction activity continue to remain low.
Rental prices were continuing to rise, which are beginning to translate into house price increases. New Zealand’s ageing population demonstrated that now was the right time to provide a premium retirement offering, never before seen in this country, Meehan said.
Today’s meeting lasted 27 minutes.
It drew a question from a shareholder about whether Meehan should be chairman as well as chief executive.
Meehan responded by saying that globally that was not uncommon and it showed how closely his interests and those of shareholders were aligned.
Winton shares are trading around $2.30, only down 2 per cent annually.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
