Property Insider: Matthew Horncastle on Williams Corporation; Fletcher Construction ‘restructures’ teams; marae building up for two global architecture awards
Blair Chappell (left) and Matthew Horncastle (right) of Williams Corporation. Photo / Supplied
Blair Chappell (left) and Matthew Horncastle (right) of Williams Corporation. Photo / Supplied
Developer Matthew Horncastle says investors are still getting quarterly returns from Williams Corporation which has downsized according to market conditions; Fletcher Construction has “restructured” teams during the building downturn; a Pt Chevalier marae building is on a global architectural award shortlist in two categories.
Activity for Christchurch-headquartered Williams Corporation hasdropped sharply but its boss says it responded to market conditions and investors in four wholesale funds continue to get returns without any missed redemptions or dividends.
Matthew Horncastle, 31, managing director of the townhouse and apartment developer he founded with Blair Chappell, also 31, described recent changes in an interview with Property Insider.
New-build annual output and staff numbers were down at the company which also downsized offices in Christchurch three months ago, he said.
But Williams only shrank as the housing market contracted which was not unexpected, he said.
Investors with $88.5 million in Williams are still being paid quarterly returns and got a combined total of $12.2m dividends in the year to March 31, 2024.
“Investors have been with us for years and they get paid quarterly. We’ve never missed a payment. We’ve built $1.2b of residential stock and I’ve never not paid my bills on the 20th of the month and never not paid my funders.”
In 2022, Williams told investors in Williams Corporation Capital, Williams Corporation Capital Partnership and Williams Corporation First Mortgage Investments that they would not be able to withdraw money on six-monthly terms and extended that to annually. That remains the case.
Unsettling news this month in the apartment-building sector did not shake that investor confidence either, he stressed. Du Val’s receivership on August 2 resulted in “not one Williams Corp investor lodging formal redemption notices”.
Williams’ new residential completions in New Zealand in years to March 31 are 335 residences in 2021, 494 in 2022, 503 in 2023, 326 in 2024 and 100 so far in the 2025 year but Horncastle anticipates 250 to 350 by the time we hit the end of next March.
Staff numbers peaked at around 240 people here and in Asia but that included the sales team who were not technically staff but contractors “and the Asian office where labour is significantly cheaper”. Some layoffs were made around November, 2022.
Now, Williams employs 55 staff “and we’re down to that team size because the market crashed further than anyone expected and it’s been longer than expected”.
Blair Chappell (left) and Matthew Horncastle (right) of Williams Corporation. Photo / Supplied
Three months ago, Williams vacated the top floor of the Spark headquarters, 2 Cathedral Square where it had around 600sq m offices with a balcony. It is now in 200sq m offices at 124 Peterborough St.
“Our last office was so large that everyone was broken up by department.” Now, he says a smaller team works better with people in closer proximity to each other.
The company “arguably” had the most beautiful offices in all of Christchurch” and he said the big balcony, huge space and big team were great for a time.
Yet he missed something about the business in the early days with “no money, no resources”, competing against huge businesses including listed companies which it often beat, he recalled.
Williams Corporation’s culture in the early days late last decade was something he wanted to return to.
“We made the call in the economic environment to go into a smaller place.”
All the changes are due to the market downturn.
Townhouses on Durham St, Christchurch by Williams Corporation.
“The housing market has crashed more than anyone expected,” he said, citing an 8% house price reduction in the global finance crisis around 2007/08 but a 15% reduction in this current recession.”
The correction in Christchurch housing values was not as great as elsewhere.
But he’s confident build rates will recover and is buoyed by imminent interest rate reductions, immigration and growth, particularly in Christchurch with its new One sports stadium under construction.
“Our business is set up based on the current market conditions. We’re strong on that basis but we’re also optimistic that the market will drastically improve as interest rates drop. It’s reasonable to assume the market will change as rates fall.”
Fletcher Construction restructures
Fletcher Construction has “restructured” some of its teams in the building downturn.
A spokeswoman said: “In response to the market conditions being faced by the construction industry, we have reviewed our business operations over the past few months, restructuring some teams where necessary. We have worked hard to re-deploy our team members where possible.”
The builder has finished work on the new five-star Horizon by SkyCity and work is also nearing completion on the neighbouring and connected NZ International Convention Centre.
Fletcher Building will this month release its annual result for the June 30, 2024 year.
Up for global architecture price for colour
Te Mahurehure Marae’s Taumata o Kupe education centre in Point Chevalier, Auckland.
TOA Architects is up for two global architecture prizes for its already award-winning Taumata O Kupe.
The “heroic” new education hub was then described as a remarkable building, decades in the planning. TOA Architects won a public architecture award, the judges calling the building heroic in ambition, reach and execution.
“It is a remarkable result following decades of work and commitment from numerous people and speaks to the determination and perseverance of the Te Mahurehure community,” they said.
Locally, we will learn which new buildings, alterations and heritage structures have been honoured in this country national architecture awards in three months’ time.
NZIA announced its shortlist of its national awards on Monday, August 5. Winners will be announced on November 22 at an Auckland event.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
