The partnership between NZX-listed Augusta Capital Ltd & Melbourne developer Ninety Four Feet Pty Ltd has signed the development agreement with Queenstown Lakes District Council for the 3ha Lakeview site in Queenstown.
Lakeview, the former campground site on Man St, is the largest remaining development site in central Queenstown. A large portion will remain public land through parks, reserves & roads.
The partners are proposing to develop a range of residential, hotel, co-working, co-living, hospitality & retail options on a staged basis, with construction estimated to take over 10 years, phased over 7 stages.
Augusta managing director Mark Francis said Augusta’s 25% stake in the partnership represented a commitment up to $14 million. Ninety Four Feet will invest the balance. Their combined capital commitment will provide enough equity to fund the first 2 stages.
Ninety Four Feet, a privately held development, investment & construction group, will manage the development. Consortium partner Britomart Hospitality Group Ltd, best known for its work in Auckland’s Britomart precinct, will curate & manage the future retail & hospitality concepts for Lakeview.
As part of the terms of the partnership agreement, Augusta will have the first option to acquire parts of the development which it intends to use to provide product to its soon-to-be-established tourism fund, as well as an option over the co-living residential product.
Mr Francis said: “Lakeview is a once in a lifetime opportunity in Queenstown which we are excited to be a part of. This transaction continues our recent move into sourcing product through alternative avenues as investment grade properties become harder to acquire, providing a strong pipeline of product for our planned tourism & residential funds. It also illustrates the dynamic manner in which we can use our balance sheet to secure such product.
“As a development partner, though, we believe the investment stacks up on its own accord outside of the product that it will provide. We also look forward to working alongside the council’s other partners in the wider development of Lakeview.”
The development agreement is conditional on the partnership obtaining Overseas Investment Office approval. Settlement of each stage will also be subject to a number of conditions, including having financing in place & construction contracts.
Settlement of stage 1 of the land is expected to occur in May 2023, following completion by the council of necessary subdivision & infrastructure works.
27 September 2019: Augusta signs Queenstown hotel manager, sets Tourism & new diversified fund targets
8 April 2019: Augusta & Britomart join 94 Feet in Queenstown development bid success
3 December 2018: Augusta buys Queenstown site for second tourism fund hotel
31 October 2018: Augusta to settle Cook St deal today
23 October 2018: Fund shareholders approve sale to initiate Augusta tourism fund
24 September 2018: Pod hotel the opportunity for Augusta to close value-add fund with strong return and open tourism fund
Attribution: Augusta release.