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Home / Business / Companies / Construction

Property Insider: Probe into four state house sites, modular homes, changes at Mitre 10, and what price a car park at Resido?

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
29 Apr, 2024 05:00 PM5 mins to read

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This apartment site was shut when the Herald visited in early April and subbies are complaining about not being paid. Video / NZ Herald

How much will Kāinga Ora need to pay contractors building 91 state apartments for Build Partners? What did the Crown business say when its new Rotorua homes were compared to shipping containers? Who are the new rising stars at Mitre 10 in Waikato? How much do the new residents of Kiwi Property’s build-to-rent Resido apartments have to pay for a car park? All answered in today’s Property Insider.

Kāinga Ora still probing finances on four sites for 91 state homes

Kāinga Ora is still ascertaining how much money is owed by construction business Build Partners after it failed to pay contractors for work on new state homes.

“The team are still verifying amounts owed,” a spokeswoman said.

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Earlier this month, the Crown agency took control of four sites for 91 new apartments by Build Partners.

Patrick Dougherty, Kāinga Ora construction and innovation general manager, said then that three projects in Auckland and one in Wellington were being developed.

Work by Build Partners, creating for new state homes for Kāinga Ora on Cadman Ave, Waterview. Photo / Jason Oxenham
Work by Build Partners, creating for new state homes for Kāinga Ora on Cadman Ave, Waterview. Photo / Jason Oxenham

Project locations are:

  • Corner Great North Road/Cadman Avenue, Waterview: 40 units and a community room;
  • Hindmarsh Street, Johnsonville: 29 units and a community room;
  • Fowlds Ave, Sandringham: 15 units;
  • Corner Hendon Ave/Hargest Terrace, Ōwairaka: nine units.

Steve Mikkelsen, a director of Build Partners and chief executive of its owner Property Partners, said this month he anticipated Kāinga Ora would pay the subcontractors.

“When you’ve got 100 subcontractors calling you every day... we are not a rogue contractor but a trusted partner with the Government that came unstuck because of the current situation,” Mikkelsen said.

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The business had built nearly 700 new state homes, he added.

“My understanding is Kāinga Ora are going to make payments for all subcontractors and suppliers. It’s been a really, really tough market. These projects were priced a long time ago and there’s been a lot of cost escalations,” Mikkelsen said in early April.

Meanwhile, we are yet to hear from the independent probe, led by ex-Prime Minister Sir Bill English, to review Kāinga Ora’s financial situation.

Housing Minister Chris Bishop has been a longstanding critic of Kāinga Ora’s financial management and had promised to review the performance of the agency within 100 days of the Government taking office. Bishop said that since coming into office, he had received “worrying advice about the financial situation of Kāinga Ora”.

Bishop says “an independent review is the right course of action at this time”.

English is working with Simon Allen, who helped with the ultrafast broadband rollout, and Ceinwen McNeil, who has experience in the construction and urban development sectors.

‘Container-like’ KO homes in Rotorua

Annamaria Downes at her Kainga Ora home on Ranolf Street. Photo / Andrew Warner
Annamaria Downes at her Kainga Ora home on Ranolf Street. Photo / Andrew Warner

Kāinga Ora came under fire last week for allegedly building container-like Rotorua homes.

The state agency said: “The new homes going in on Ranolf St and Malfroy Rd in Rotorua have got tongues wagging all across town. And we understand why.”

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They’re different from what Rotorua is used to, but they are going to be great, stylish and well-insulated homes for people in need, it said.

The homes are built using modular construction being bespoke steel modules manufactured offsite before being joined together to create homes that tick all the boxes:

  • Made to comply with New Zealand standards;
  • Quality assurance of all construction materials by independent chartered professional engineers;
  • Steel is coated with a product designed to ensure durability in the local environment;
  • Warm, dry, modern housing for 12 families in need.

Property Insider has noticed there is a huge division in the residential construction sector between modular believers and modular doubters.

There is perhaps no more divisive issue than whether housing’s future is modular - or not.

Mitre 10 changes in the Waikato

Abby and Hayden Camp are the new owners of two Mitre 10 stores in Waikato as well as a distribution centre.
Abby and Hayden Camp are the new owners of two Mitre 10 stores in Waikato as well as a distribution centre.

Hayden and Abby Camp are the new owners of Mitre 10 Mega Te Rapa and Mitre 10 Mega Ruakura.

Mitre 10 Mega Hamilton announced the deal and said the two grew up in the area.

Hayden Camp had been involved with Mitre 10 since 2016, when he joined Hamilton Hardware Retail which trades as Mitre 10 Mega Hamilton.

In 2022, he was appointed chief executive.

Abby Camp had previously held a senior sales and marketing role at Accor Hotels, Mitre 10 said.

The two stores and a distribution centre had about 230 staff. The Camps have a controlling shareholding. Smaller shareholdings are held by James Matheson, Jessica Fearnley and Levi Glasgow Cox.

What about the car parks?

This interior image of a new Resido apartment was released today. Photo / Kiwi Property Group
This interior image of a new Resido apartment was released today. Photo / Kiwi Property Group

When Kiwi Property Group last week announced tours of its new 295-unit Resido, people asked if those fees from about $695 to more than $900 per week included car parks.

The short answer? No.

A Kiwi spokesman said car parks at the huge new complex off the Mt Wellington Highway are about $40 per week each.

Applications went live last week to rent apartments. Units start at $697 a week, two-bedroom two-bathroom 90sq m places are $921 a week, while the same number of bedrooms and bathrooms in a 76-80sq m place is $889 a week. For $930 per week, you get an 80sq m unit with two bedrooms and two bathrooms.

Tour bookings for the nearly finished project are now open for those wanting to see inside.

Resido is in blocks up to 12 levels high and has common areas for residents.

People with pets were welcome and could get an on-site dog walk and dog wash service.

Bike sharing, electric vehicle charging, and double glazing make for a greener and easier life, Kiwi says, citing the many restaurants, cafes and shops at Sylvia Park and a train station there as well.

Anne Gibson has been the Herald’s property editor for 24 years, has written books and covered property extensively here and overseas.

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