Housing Minister Chris Bishop has unveiled the Government’s plan to “flood the market’ with land for development in a bid to end New Zealand’s housing crisis. Video / Michael Craig
The developers beat Auckland Council trying to block their plans and won approval via the courts and a Government agency to rezone land on the outskirts for tens of thousands of newhomes.
If Housing Minister Chris Bishop thought he was announcing a masterstroke with Cabinet-approved plans to gazump the council, he’d already been beaten to that game by at least these two developers who have fought for some years to build.
Kiwi has completed two successful years of earthmoving at its vast Drury East site where it plans to build thousands of new homes on greenfields land. Photo / Michael Craig
The council tried to stop them from having rural or agricultural land - including a golf course - re-zoned for new town centres, reserves, precincts for retail, commercial and light industrial as well as for thousands of homes.
The two developers are:
NZX-listed Kiwi Property Group headed by Clive Mackenzie, controlling $3.2b of property including Sylvia Park;
Beachlands South Partnership fronted for publicity by Brett Russell but including iwi and the NZ Super Fund.
Mackenzie says Kiwi’s Drury East site was not very productive for grazing anyway, unlike the prized red Pukekohe soils.
All up, those two men’s well-funded businesses own nearly 400ha of relatively flat agricultural land where entirely new town centres are being - or will be - built.
Best of all, their sites also have significant public transport links: A train station rising at Drury East while the Pine Harbour ferry service already services Beachlands South, although locals decry increased road congestion countered by Beachlands South which plans to improve parts.
Flanagan homestead shown relocated in plans by Kiwi for Drury East. Photo / Kiwi Property Group
DRURY EAST - WHAT IS IT?
Kiwi Property Group, NZ’s largest listed developer, owns 53.5ha of a wider 330ha.
Plans are 20 to 25 years away from being fulfilled.
A new city the size of Napier is planned for 330ha by Kiwi Property, Fulton Hogan and Oyster Capital.
Kiwi is most advanced: Consented earthworks began October 2022.
Ex-dairy land is Kiwi’s focus.
Plans are for a new town, offices and large-format retail.
Area may also include three schools and a hospital, depending on Government decisions.
July, 2023: Kiwi granted fast-track consent via Crown agency the Environmental Protection Authority.
Kiwi has already completed two successful years of earthworks on the relatively flat site.
New schools and possibly even a new regional hospital with its own train station are envisaged.
Once urban zonings are in place, Kiwi will sell its land to group house builders, with plans for 7000 homes accommodating about 19,000 people.
David Schwartfeger and Clive Mackenzie on the greenfields site at Drury East last winter. Photo / Michael Craig
Kiwi then plans 5.8ha of office floorspace, 11ha of shops, up to 6000 jobs, bus interchange, provision for a regional hospital precinct, two primary schools and one secondary school, and 10ha of open space with a cycleway.
Mackenzie defers to the Ministry of Education and Ministry of Health when it comes to the hospital and schools, but says a new regional hospital will be needed in the area in the next few years.
An independent panel of the Environmental Protection Authority granted East Drury’s fast-track resource consent application — a scheme the Government introduced to get through what was expected to be a Covid construction slowdown.
BEACHLANDS SOUTH - WHO ARE THEY?
Towards the sea, Beachlands South Limited Partnership fronted by Brett Russell comprises:
MIB Limited Partnership: Brett Russell’s Russell Property Group and plumber Rob Bassett of Bassett Plumbing;
NZSF Beachlands, a New Zealand Superannuation Fund entity;
Ngāi Tai Hāpai Development Limited Partnership, which represents six iwi and also jointly owns Macleans College land.
The 307ha of land rezoned only a few weeks ago is at 110 Jack Lachlan Dr and 620, 680, 682, 702, 712, 722, 732, 740, 746, 758 and 770 Whitford-Maraetai Rd.
The scheme proposed is:
307ha of land mainly zoned rural countryside living has been rezoned to residential, business, open space and future urban.
An initial $2.5b of infrastructure is needed to enable development of land which has no reticulated water or sewage mains.
An initial 5000 residences planned in stand-alone, terrace and apartment configurations.
New town centre, light industrial area, 150-room hotel, reserves, bike paths, conference centre, new primary and secondary school.
Kiwi is more advanced with its plans than Beachlands.
Plans for the new Beachlands South town hub, with multi-level apartments.
But both aim to create new centres and housing in the live/work/play model of urban planning.
Both aim to retain many residents within their new town centres, to work as well as shop and use services in the areas they live in.
Schools and a new hospital would be a bonus.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
