An artist's impression of Lakeview Taumata. The master-planned community will be built over 10 years.
Questions are being asked about the New Zealand arm of ASX-listed property funds manager Centuria Capital Group exiting a $2 billion Queenstown development – Lakeview Taumata – before parties even began building.
Last month’s statement from Centuria Funds Management explained what happened to the project, which local media outlet Crux described as “deathly quiet for the past year or so”, “controversial” and “troubled”.
Centuria headed its statement on selling its 25% holding as “94 Feet takes full ownership of Lakeview-Taumata, Queenstown”.
“Melbourne-based property developer, 94 Feet, has acquired Centuria NZ’s interest in the mixed-use development, Lakeview-Taumata, taking full control of the project,” Centuria said.
Previously, the project was a collaboration between 94 Feet as lead developer, Centuria NZ, and Britomart Hospitality Group, in partnership with the Queenstown Lakes District Council, the statement said.
The project is to rise on the ex-Queenstown campground near the Skyline base above the township.
It is to be a mixed-use residential, retail and commercial precinct.
Despite the split, Mark Francis, Centuria NZ CEO, said last month: “We are proud of our involvement in the Lakeview-Taumata development and our team has made significant contributions throughout the planning and consenting phases.”
Francis has previously expressed strong confidence in the development in Queenstown.
He is also an investor in the new surf park being built near Silverdale and managing director of NZX-listed Asset Plus.
Instead of confidence in Queenstown, his talk late last month was of what a good idea it is to sell out.
“Recently, 94 Feet expressed interest in acquiring Centuria NZ’s position and we concluded the time was right to step back from the project as our strategic focus shifts to other emerging investment opportunities.
“We are confident 94 Feet’s expertise and vision will make Lakeview-Taumata a great success, bringing significant benefits to the Queenstown Lakes area over the long term,” Francis said.
Charmaine Balchin, 94 Feet development manager in Melbourne, said the site might look quiet but activity had occurred there.
“Bringing a project of this scale to life involves much more than simply starting construction,” Balchin told the Herald.
“Since 2021, we undertook the extensive work required to properly stage the development, obtain resource consent for the first stage – a significant and time-intensive process – and build the brand and campaign needed to support presales and funding.
“We also had to co-ordinate with [the] council’s major infrastructure programme, which was essential to unlocking the site.”
That was a programme with a value of about $70 million, Balchin said.
All of this was typical for a project of this scale and complexity, she said.
Balchin said 94 Feet was in a strong position, with presales of $150m, finance secured, the builder contracted, two building consents in place and site activity due to start “shortly”.
As for Centuria, the shareholding change reflected a natural point in the project’s transition from planning into delivery.
“From here, we’re focused on executing the vision with momentum,” Balchin said.
94 Feet was funded by Merricks Capital when it built the new $250m Hotel Indigo, at 51 Albert St in Auckland.
Dean Rzechta, 94 Feet managing director, visited when that was being built.
Rzechta engaged agent Graham Wall to sell the penthouse but acknowledged the market was “challenging”.
At Lakeview Taumata, planning has been under way for years without it rising yet.
That is one of the reasons locals are expressing doubt about it.
In 2022, the Herald reported how the 10ha site was to get 500 new apartments and three new hotels, with developers having won fast-track approval under a Government scheme.
Public reserves and a new plaza are planned for the European-inspired development which was being planned three years ago by Centuria, 94 Feet, the Britomart Hospitality Group, Naylor Love and a range of architects.
In 2021, the scheme, set to rise on the terrace ledge above the town, was dubbed the “Alpine Britomart”.
In 2022, the Auditor-General dismissed concerns about the $75m sale of Queenstown’s camping ground to make way for Lakeview Taumata.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.