Property Insider: Property investor’s $84,000 discount to celebrate change of Government, Herne Bay boatshed build latest; Perth ‘plumbing’ or ‘pipe’ victims?

The latest on an audacious plan for a new boatshed over the water in our wealthiest suburb; Perth homeowners challenge Fletcher Building’s CEO; and discover the reason why discounts were offered to some luxurious new Auckland CBD apartments. The Business Herald’s new column offers insight into what those on the inside of the property industry are talking about, what worries them, what they’re celebrating, the rises, the falls and who’s doing what.

A controversial application from a multi-millionaire to build a new Herne Bay boatshed went to authorities in May, so what’s happened since then?

Auckland Council said plans were put on hold by the applicant on June 15 this year. There’s been no further action since then, but the application can stay in abeyance until December 15.

Will the owner of the $22 million waterfront mansion go ahead with the scheme?

Herne Bay Residents’ Association members Dirk Hudig and Don Mathieson oppose it as “a massive thing” that will dominate the wee public bay, its foreshore and the Herne Bay coast, with its bulk and extensive ramp leading well into the tide.

But boatshed builder ILowa Ltd got powerful neighbours to rally in favour of the scheme: insurance, funds management, supermarket, fitness, early childhood, motor vehicle and travel sector bosses.

The boatshed would be a waterfront addition to this Herne Bay mansion, once owned by the sultan of Brunei.

Not included in the completely supportive application document were those the boatshed builder approached but who didn’t back it.

“And there were quite a few,” locals told Property Insider last week.

Watch this space.

‘How do they explain leaks I have had on straight pipes?’

Not all Perth homeowners were convinced by Fletcher Building chief executive Ross Taylor’s statements at last month’s annual meetings that Iplex pipe leaks were due to installation failures, particularly sharp bends.

“Pipes have been massively overbent? How do they explain the two leaks I have had on straight pipes - one running straight out from the house to the hose, both with splits looking like it has been nicked with a Stanley knife? [An] installation issue?” wrote Robyn Allen of Perth.

But a Fletcher spokesman reiterated Taylor’s stance that it was mainly bent, wrongly installed pipes that leaked: “We are seeing the vast majority of plumbing failures occur on bends. However, they are not the only type of failures we are seeing. We have also observed a small number of failures on straight pieces of pipe.”

Ross Taylor told Fletcher shareholders last month bent and wrongly installed pipes suffered problems in Perth, and he referred to plumbing issues, not pipe issues - given Fletcher's company made those pipes. Photo / Greg Bowker

Iplex-made Pro-fit pipes - which are no longer made - expand and contract with water pressure, including water hammer and temperature changes. They therefore need to be installed correctly to allow for expected thermal expansion and movement, he said.

One of the major installation failings Iplex and Fletcher identified was putting in pipes but not allowing for that - hence, Taylor called the Perth problems “plumbing” issues, not pipe problems.

The Fletcher spokesman told Property Insider: “We have identified the pipes either being cemented in place or held tightly, restricting movement and causing damage. We have also identified lagging being used that is not impermeable as required, allowing the mortar to seep through, and which does not provide the secondary benefit of protecting the pipes from sharp edges in the brickwork and framing.”

Using pipe offcuts as pegs to hold pipes in place instead of clips could also contribute to problems, he said.

These are likely causes of some of the Perth pipe failures, Fletcher’s spokesman said.

Perth homeowner Nat Salas was unconvinced: “Me too!” he told pipe victim Robyn Allen. “Nine bursts since April 2022, and [I] have photos of straight pipe bursts too, like pinhole splits. The pipe is literally splitting. Nothing to do with bends.”

Five CAB apartments discounted, prices marked down $84,000

John Love, who undertook what could be New Zealand’s largest office-to-apartment conversion, discounted five units in The CAB last month.

Places in the 19-level block with three unsold penthouses were going for $84,000 less, although of the five places discounted, Love said late last month that apartment 404 was now under contract.

Love bought Auckland Council’s former headquarters, the iconic Civic Administration Building, renamed it The CAB, then turned the offices into residences.

The block stands between Aotea Square and Mayoral Drive and was occupied by the council for decades.

Asked the reason for the discounts, he denied financial motives: “[We’re] under no pressure, [and] have good equity and very supportive and relaxed funders. The CAB is only stage one of the multi-stage Civic Quarter Development.”

“The CAB’s one and two-bedroom apartments have been sharply re-priced from $610,000 for the month of October. Purchase one of five stunning units at The CAB between now and October 31 and save up to $84,000 on a luxurious, award-winning apartment,” advertising said.

Inside the top-floor penthouse of the Civic Administration Building, known as The CAB, in Aotea Square. Developer John Love of Love and Co. has completed this award-winning 114-apartment project, where 23 units are still to be sold. Photo / Alex Burton

Love said the discounts had nothing to do with pressures to sell, but instead blamed the outgoing government.

“We simply wanted to give an election special on a small number of our lower-value units for a limited period of time. Note that our offer ended October 31,” Love told Property Insider.

“We really wanted to celebrate ridding ourselves of the disastrous anti-property/business Labour government,” Love said, citing tenancy law reform, immigration policies, loan-to-value ratios, credit law, bright-line interest deductibility, occupation safety and health “overreach” and Level 4 lockdowns.

Love and Co. is enthusiastically celebrating the new Government.

In June, Love said 23 units were left to sell out of the 114 units in the job undertaken by Naylor Love. The development hasn’t been all plain sailing - all existing old floors had to be removed because they weren’t strong enough, but that wasn’t obvious in advance. The $16.5m penthouse on the entire two top floors and two sub-penthouses of half a floor each remained unsold.

But this month, Love said only 18 of the 114 places were unsold.

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.