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Home / Business

The New Zealand navy's $594m property portfolio

Corazon Miller
By Corazon Miller
Reporter·NZ Herald·
16 Apr, 2017 04:14 AM4 mins to read

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The majority of the navy's property portfolio, $353.8m worth, is in Devonport where the naval base is located. Photo / NZH Greg Bowker

The majority of the navy's property portfolio, $353.8m worth, is in Devonport where the naval base is located. Photo / NZH Greg Bowker

The New Zealand Defence Force's navy property portfolio has tipped over the half-billion-dollar mark - up $214m in the last decade.

Its navy properties are worth a total $594m, up 36 per cent in June 2016 from $380m in June 2007.

The bulk of the portfolio is in Auckland - $582m's worth - the majority of this in Devonport.

Information released to the Herald under the Official Information Act (OIA) showed despite recently selling off some of its surplus land on Auckland's North Shore, including a 4.2ha vacant block overlooking Ngataringa Bay, $353m remained in Devonport where the naval base is located.

Currently the NZDF owns three main blocks of land in Devonport; the South Yard (Waitemata Harbour), North Yard (Ngataringa Bay) and Narrow Neck (Vauxhall Road).

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The figures also showed spending on its upkeep and other associated costs has risen by almost $10m in the last five years - from $17.9m in the 2011 - 2012 financial year to $26.8m in 2015 to 2016.

By far the biggest contributor causing costs to rise was the $6.8m being paid to local iwi after the ownership of a number of Navy houses in Devonport was transferred as part of a treaty settlement in 2012.

The lease of these properties, which contributed to 2432 per cent rise ($6.6m) in rental costs over the last five years, would end in 2018.

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The NZDF wouldn't elaborate further on the details of this deal because it was commercially sensitive, but said costs weren't expected to reduce once the lease ended.

Meanwhile an NZDF spokesman revealed further deals were on the cards; the Crown is currently negotiating with the Marutuahu Collective.

If the deal goes ahead it will see the transfer and leaseback of three more properties on Calliope Rd and four blocks of land at Whangaparaoa.

A spokesman confirmed this was part of a wider Treaty of Waitangi redress package but said details could not be provided as it had not been finalised.

In mid-2018 the sale and leaseback of land at Torpedo Bay is also expected to go ahead.

Though the Navy's rental fees showed the biggest increase in costs, the price of the upkeep and maintenance of these properties was still the most expensive - a total of $12.3m in the last financial year - almost double what was paid to the iwi in rent.

The majority was spent on getting its accommodation blocks equipped with a new fire alarm system, enhanced emergency lighting and other fire compliance works, to a total of $2.3m.

A NZDF spokesman said this was to meet with the building consent requirements following the refurbishment of some of its barracks

The NZDF also spent $234,560 on transforming the navy community house into two flats and another $75,524 was spent resurfacing the floor of its swimming pool changing room, relining the men's showers and painting the changing rooms.

Other work included replacing carpets, work on exterior cladding, redecoration, insulation and refurbishment - all of which the NZDF said was part of planned maintenance to ensure its buildings were "fit for purpose".

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The New Zealand Navy's association with the Auckland suburb began back in 1840 when Lieutenant Governor William Hobson, a royal navy officer, arrived onboard the HMS Herald in February that year.

When Auckland was established as the capital, the Waitemata Harbour became a regular anchorage for warships, before a permanent naval presence was established the following year.

Today the base offered a self-contained community, with accommodation facilities, places to eat, health and social services, a gymnasium and sports facilities, childcare, the navy marae, a chapel and a library.

Officers spend a lot of their naval career at the base, and during and after training many naval ratings live in the barracks at Devonport or in nearby navy housing when not at sea.

The two other large chunks of land that make up the navy's property portfolio are also in Auckland, with $92.7m worth of property at Kauri Point and $79.1m on the North Shore.

Outside of the Super City the NZDF also owns properties used by the navy in Wellington ($7.3m) and Christchurch ($4.06m) where it has a couple of training bases.

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Value of the navy property

Total: $593.760

Auckland: $582.348m
Wellington: $7.349m
Christchurch: $4.063m

Top three navy suburbs

Devonport: [together with other defence organisations]: $352.785m
Kauri Point: $92.727m
North Shore Married Quarters: $79.095m

Navy property value
June 2007: $380.189m
June 2008: $521.210m
June 2009: $481.067m
June 2010: $629.687m
June 2011: $619.669m
June 2012: $582.203m
June 2013: $419.428m
June 2014: $487.254m
June 2015: $463.426m
June 2016: $593.761m

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