Archive | Wainui

3-way partnership to fund infrastructure for next big subdivision at Wainui

Government support for infrastructure funding ahead of the next big residential development between the Hibiscus Coast & Kumeu is recognition that Auckland Council doesn’t have the capacity to provide the works immediately, for recovery over the longer term.

Image above: Housing developed over the last 5 years below the Millwater Parkway.

Through the immigration explosion of the last 5 years, the council’s debt has risen to be a wafer short of its limit, although the same issues of infrastructure funding have been staring politicians in the face for 2 decades.

The last government chose major roads as its best option for infrastructure funding, and watched on as former mayor Len Brown told Wellington the Auckland council would go it alone in starting the city rail link. The Government later joined in, to become a full partner.

Offroad transport is the greatest apparent need to defuse the congestion steadily bringing Auckland to a more widespread standstill, at all times of the day. But, as the net inflow of migrants into the region remains above 30,000/year, a change in how subdivision preliminary works are funded was equally imperative.

3-way partnership, outlay recouped through targeted rates

Housing & Urban Development Minister Phil Twyford.

The answer from Housing & Urban Development Minister Phil Twyford came on Wednesday, when he & Auckland mayor Phil Goff announced a 3-way partnership to fund $91 million of roading & wastewater infrastructure to support the building of 9000 homes at Wainui, immediately west of the Millwater subdivision rapidly being built out between Silverdale, Orewa & State Highway 1 40km north-east of downtown Auckland.

Along with the council & Government entity Crown Infrastructure Partners Ltd, the Government special purpose vehicle (SPV) will have Fulton Hogan Land Development Ltd as the third partner.

Mr Twyford said the Milldale project (an extension beyond Millwater, which began in 2007 with Fulton Hogan as one of the partners) “demonstrates an approach to funding that allows private investment in new infrastructure, with the debt sitting on a balance sheet that is neither the council’s nor the Government’s.

“The Milldale project is an example of the innovative new approaches to financing infrastructure that the Government is developing through the urban growth agenda. This funding model can be used in other high growth areas affected by the housing crisis to help more houses to be built more quickly.

“This could include private investment in infrastructure, funded by a charge on the properties that benefit from the infrastructure.

“This new infrastructure funding model will result in a large number of homes being built much sooner than otherwise would have been the case.

“One of the major roadblocks to our towns & cities growing is the lack of ready access to finance for the infrastructure that allows for new urban growth, for greenfields or brownfields developments.”

Mr Goff said addressing the shortage & unaffordability of houses was a priority: “We’ve zoned much more land for housing, but we need the infrastructure before we can build on it. Using Crown Infrastructure Partners to fund that infrastructure enables us to build roads, water & wastewater services without overburdening the council with debt and exceeding our debt:revenue ratio.

“We can build more homes sooner and tackle the housing crisis quicker than would otherwise have been possible.

“This project enables nearly 4000 new dwellings in Milldale, and the infrastructure can support another 5000 dwellings in the surrounding areas as well. It’s a big step towards meeting Auckland’s housing needs.”

Fulton Hogan Land Development has already started work on Milldale.

Crown Infrastructure Partners has secured long-term fixed-rate debt from the Accident Compensation Corp, and the special purpose vehicle will provide $48.9 million towards the infrastructure, with the Crown contributing less than $4 million.

The council contribution will total $33.5 million.

The SPV funding will be repaid over time, partly by Fulton Hogan Land Development and partly by section owners as an ‘infrastructure payment’ collected as a targeted rate through council rates bills.

Mr Twyford said: “This new model of infrastructure financing means that long-term debt can be raised through the SPV to enable the building of largescale infrastructure, which is needed to step up the rate houses are being built at, and to assist councils which are nearing their debt limits.

“The Milldale development will be a modern, contained urban development with green spaces & parks, a town centre, cycleways & walkways, and potentially education facilities, and will be connected to the northern busway.

The infrastructure includes a new arterial road & bridge connecting Wainui Rd to the State Highway 1 interchange & Dairy Flat Highway at Silverdale, intersection upgrades, a roading extension & bridge to the Highgate Parkway business precinct on the eastern side of the motorway, and wastewater tunnels.

Construction of the wastewater tunnel has started, and the first residential sections will be released in the early new year.

Mr Twyford said the infrastructure funding & financing pillar of the Government’s urban growth agenda would enable responsive infrastructure provision & appropriate cost allocation, including the use of project financing & access to financial capital.

Through this agenda, he said the Government aimed to reform infrastructure funding & financing by:

  • providing a broader range of tools & mechanisms  to enable net beneficial bulk & distribution infrastructure to be funded
  • rebalancing development risk from local authorities to the development sector, and
  • making long-term debt finance available to developers willing to take on the commercial risk, with the debt serviced by revenue from the new properties in a development.

Link: Millwater & Milldale website

Attribution: Ministerial release.

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4 sales & 2 leases for Shore agents

Bayleys commercial agents on the North Shore have sold 3 Rosedale properties and one in Takapuna, and signed up 2 leases.

North-east

Sales

Rosedale

43 Omega St, unit 1B:
Features: 190m² office unit, 5 parking spaces
Outcome: sold vacant this week for $745,000 + gst
Agents: Alex Strever, Ildy Meixner and Barfoot & Thompson

10 Orbit Drive, unit A:
Features: 1097m² industrial unit occupied by Cellnet Ltd – warehouse 838m², office 258m², canopy 40m², 15 parking spaces
Rent: $160,000/year net + gst
Outcome: sold in August for $3.375 million + gst at a 4.74% yield
Agents: Matt Mimmack & Laurie Burt

13 Piermark Drive, unit D:
Features: 527m² industrial unit – warehouse 410m², office 117m², 9 parking spaces
Outcome: sold for $1.55 million + gst
Agents: Matt Mimmack & James Kidd

Takapuna

1 Shea Terrace:
Features: 1012m² site, 660m² office building, 18 parking spaces, Waitemata District Health Board occupies top floor
Rent: rent from health board $102,620/year net + gst; notional rent $203,840/year net + gst; vendor underwrite option on recently vacated ground floor of $101,220/year net + gst not taken up by buyer
Outcome: sold part-vacant in August for $3.55 million + gst at a 5.74% yield
Agents: Michael Nees, Damian Stephen, Adam Curtis & Adam Watton

Leases

Rosedale

5 Parkhead Place:
Features: 649m² industrial property, 12 parking spaces
Rent: leased in August for $90,000/year net + gst
Agents: Matt Mimmack & Laurie Burt

Wainui

543 Waitoki Rd:
Features: 1000m² industrial yard, container area 450m²
Rent: leased in August for $31,900/year net + gst
Agents: Rosemary Wakeman & Laurie Burt

Attribution: Agency release.

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$15,000/m² for 40-year-old apartment, $47,300/ha for Wainui farm

Bidders came & went, and at $860,000 a unit in a 12-apartment block in St Marys Bay was on the market. With the auctioneer’s hammer almost into the downswing, a new bidder entered the fray, the jousting went in thousands, $500s & $5000s and the late bidder won the contest at an even $1 million.

This was the only apartment up for auction at Bayleys yesterday and it attracted a large audience, as is often the case with highly prized areas.

The auction came a day after the Real Estate Institute warned that the Auckland residential market appeared to have only glimpsed at cooling before continuing upward again. For this 1970s unit, assuming $150,000 for parking, the price would still be around $15,000/m² internal – around the price developers are seeking for new central apartments being marketed.

The price of an apartment a short walk from Ponsonby Rd can’t easily be compared with the value of a small farm just outside the northern urban growth zone, but a short drive from the new motorway ramp at Wainui.

Being outside the future urban zone of the proposed unitary plan, the farm is “just” a farm.

Isthmus west

St Marys Bay

1G Caroline St:
Features: 57m², 2 bedrooms, Juliette balcony, 20m² courtyard, single garage + one offstreet parking space
Outgoings: body corp levy $3105/year
Outcome: sold for $1 million
Agent: Suzie Paine

Earlier story:
13 April 2016: Median house sale prices hit new records

North-east

Wainui

The farm at 283 Monowai Rd, Wainui.

The farm at 283 Monowai Rd, Wainui.

283 Monowai Rd:
Features: 40.25ha beef & sheep farm, rolling hills, elevated views, water supply, 3-bedroom home plus barns & sheds
Outcome: sold for $1.905 million at $47,329/ha
Agents: Karen Asquith & Graeme Mann

Attribution: Auction.

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Cleanfill proposed for Wainui

Published 7 April 2008

Jurisdiction: Rodney District

 

Neighbourhood: Wainui

 

Applicant: Kahikatea Land Ltd (Craig Beecroft, Dairy Flat; & Warren Dryden, Remuera)

 

Application detail: Whitehills Rd, application for consent for a cleanfill activity in the general rural area, which is non-complying

 

Notification date: 3 April

 

Submission closure date: Monday 5 May

 

Other details: Mr Beecroft is a director of Cavanaugh Finance Ltd, Fountainhead Family Trust Ltd, Gervin Rd Farm Ltd, Gulf View Trust Ltd, Horseshoe Bush Farming Trust Ltd, Horseshoe Bush Rental Investment Ltd, Kauri Heights Ltd, Kauri Park Farm Investment Ltd, Matakana Lifestyle Trust Ltd, Nature View Ltd, Northern Lights Trust Ltd, Panorama Estates Ltd, Rixington Group Ltd, Summervale Holdings Ltd & Sunny Valley Farm Investment Trust Ltd. Mr Dryden is a director of Dryden Property Ltd & Pania Custodians Ltd. McLeod Group Ltd (John Baker, city; & 2 directors who joined him in a newly incorporated McLeod Group last year, Shane Albrecht, Mt Eden; & Anthony Dainty, Freemans Bay) has a large minority interest.

 

Want to comment? Email [email protected].

 

Attribution: Council notice, story written by Bob Dey for this website.

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Proposal for Kelly Park film zone notified

Published 19 December 2007

Jurisdiction: Rodney District

 

Neighbourhood: Wainui

 

Applicant: Council

 

Application detail: 909 Haruru Rd, plan change 108 to the operative district plan, and variation 110 to the proposed district plan, introduction of Kelly Park special zone.

 

The plan change & variation introduce the special 28 film zone to land known as Kelly Park, a 400ha rural property being used for film activities. The plan change & variation would allow for film-related activities including buildings, “while retaining the essential elements of the rural character of the site and the role it plays in the local area”.

 

Notification date: 18 December

 

Submission closure date: Monday 25 February

 

Website: Kelly Park special zone pdf

 

Earlier story:

8 April 2001: ARC versus an equestrian park

 

Want to comment? Click on The new BD Central Forum or email [email protected].

 

Attribution: Council notice, story written by Bob Dey for this website.

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