Work is progressing at a housing development on Ngongotahā Rd in which 202 new homes will be built. Inset: Developer Marcus Jacobson. Photos / Kelly Makiha, Andrew Warner
Work is progressing at a housing development on Ngongotahā Rd in which 202 new homes will be built. Inset: Developer Marcus Jacobson. Photos / Kelly Makiha, Andrew Warner
Work on 202 homes in Ngongotahā is progressing well despite financial issues for the developer’s other companies.
Marcus Jacobson confirmed the project is on track with solid funding arrangements.
The development aims to alleviate Rotorua’s housing pressure, with earthworks already under way.
Work to build 202 homes on the outskirts of Ngongotahā in Rotorua is progressing well despite another company linked to the developer falling over amid financial woes.
Marcus Jacobson of Watchman Capital, which is in partnership with the Government to build the Ngongotahā homes, said the Ngongotahā project remained ontrack.
“There are no financial issues, and the funding arrangements are solid,” Jacobson told the Rotorua Daily Post this week.
The NZ Herald reported in April that another of Jacobson’s companies, Mahia Village, has been liquidated owing $4.6 million to Kiwibank and the Inland Revenue Department (IRD) after it built 112 apartments and townhouses in South Auckland’s Wattle Downs.
Jacobson told the Herald in April that project was completed a couple of years ago and the debt was “part of the issue with the funder”.
He was referring to American business Arena, which loaned money for Wattle Park.
Marcus Jacobson at the Ngongotahā housing project site in September 2023. Photo / Andrew Warner
Jacobson told the Rotorua Daily Post Ngongotahā’s funder was different and in “good order”, and the project was progressing well. He would not disclose the name of the funder.
A Ministry of Housing and Urban Development spokesperson said Watchman Residential remained a solvent company and continued to be the developer.
The spokesman said earthworks started this year for the much-needed development, which would help ease pressure on Rotorua’s housing market.
Consenting was successful and a fast-track resource consent was approved for the first 202 homes.
“As stages of the development are completed by Watchman Residential Ltd, the funds the ministry invested (through purchasing the land and consenting costs) will be repaid by Watchman Residential to the Crown,” the spokesman said.
The Government paid $8m in 2022 for the 15.9ha site at 31 Ngongotahā Rd.
It has not been said yet how the homes will be owned but Jacobson dispelled some rumours this week.
“Just to clarify, the homes are not being developed by or for Kāinga Ora, despite some local misconceptions,” Jacobson told the Rotorua Daily Post.
What the proposed new houses at Ngongotahā will look like. Photo / Supplied
Residents of the area were generally positive about the development when approached by the Rotorua Daily Post.
Merlene Whyte lives across the road and she was excited to see what it would look like.
“I think it is going to be good for Ngongotahā. Housing is needed everywhere and why not use a vacant section?”
She said the noise of the earthworks did not bother her and she was excited to see the progress each day.
“Living here, we are used to road noise. I’m looking forward to meeting new neighbours.”
Another Ngongotahā Rd resident, who did not want to be named, said his father owned the land about 30 years ago but sadly, he did not sell it for the millions it went for in 2022.
He said he was looking forward to the development’s completion as he believed it would help the community.
“The shopkeepers will be rapt. The only thing I worry about is where will all the kids go to school, because the school is full.”
Roading was another concern, because the traffic was already banked up from the Ngongotahā roundabout to the Waiteti Stream Bridge at 8.30am.
“What will it be like with another 300 cars on the road ... Education, health and roading in this country are all buggered,” he said.
It was about time Ngongotahā progressed, however, because building work was happening everywhere else.
“The roads are going to be busy, but they are busy now.”
The consent includes approval to build a large wetland area at the site’s rear that developers have said will mitigate flooding risks – an issue of concern for residents and iwi.
Other companies Jacobson is involved with have also struck financial trouble.
His property development company Roto Whare went into receivership and liquidation in December after defaulting on its loans while developing 42 townhouses in Rotorua’s Mountview Green housing estate at Koutū.
Marcus Jacobson at the Mountview Green development before it collapsed financially. Photo / NZME
In December, the Heraldreported IRD, Bay of Plenty Regional Council, Fletcher Distribution, Genesis Energy and Resene Paints were creditors of the insolvent company, as were several Rotorua trade businesses.
A Florida-headquartered financier was owed $28.2m. Quaestor Advisors LLC of Jacksonville, Florida, was listed as the single largest creditor.
The first receivers’ report, from February, said secured and trade creditors were owed $29.9m and unsecured creditors $1.6m.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
