Archive | Wellington

Hodge sells Seaview business park, and Education House sold

Seaview HP Ltd (Shayne Hodge) has sold the Port Domain business park in Wellington (pictured above) on an 8.45% yield. Mr Hodge’s family founded property syndicator Waltus Ltd in the 1980s, merged the syndicates into Urbus Properties Ltd in 2000, listed it then sold the management rights to ING (NZ) Ltd in 2004 for about $25 million. After some more mergers & portfolio acquisitions, Urbus evolved into the NZX-listed Argosy Properties Ltd.

Mr Hodge continues to trade through The Hodge Group (2010) Ltd & Seaview HP, which bought the 2.2ha former Te Puni mail centre on the Petone Esplanade for $15.4 million in 2014 and turned it into a bulk retail centre anchored by Bunnings Warehouse.

On the Te Aro flats of central Wellington, Education House on Willis St has been sold on a 7.5% yield.

They’re among 9 commercial sales around the Wellington region by Bayleys.

Earlier story, 7 April 2014: Hodges buy Te Puni mail centre

South of the Bombays

Wellington

CBD

Te Aro

4 Tennyson St:
Features: vacant 2-level 520m² unit-title office/showroom
Outcome: sold for $1.85 million at land & building rate of $3557/m²
Agent: Mark Sherlock

90-104 Tory St:
Features: 1245m² site, 2215m² 3-level retail & office building, 9 tenancies, seismic assessment 85% of new building standard
Rent: $450,000/year net + gst
Outcome: sold for $5 million at a 9% yield
Agent: Grant Young

Education House on Willis St.

178-182 Willis St:
Features: 1479m² site, 6513m² 13-level Education House (West Block) office tower, seismic assessment 70% of new building standard, multiple tenancies, parking for 75 vehicles
Rent: $700,000/year net + gst
Outcome: sold for $9.3 million at a 7.5% yield
Agents: Grant Young & Luke Kershaw

Lower Hutt

191 High St:
Features: 964m² site, 1697m² fully leased 3-level commercial building, retail/office tenancy on ground floor, 2 levels of offices above, dual street access, secure parking for 13 vehicles
Rent: $252,495/year net + gst
Outcome: sold for $2.935 million at an 8.56% yield
Agents: Paul Cudby & Andrew Smith

418 High St:
Features: 204m² site, 200m² retail building, 3-year lease generating rental income of $39,000/year gross
Outcome: sold for $635,000 at land & building rate of $3112/m²
Agent: Andrew Smith

Ngauranga

27 Jarden Mile:
Features: 884m² site, 850m² partially tenanted warehouse & office building, buyer will use vacant area of about 300m²
Rent: $70,000 /year net + gst
Outcome: sold for $1.725 million at land & building rate of $2,100/m²
Agent: Fraser Press

Paraparaumu

33 Kapiti Rd:
Features: 868m² site, 360m² 2-storey office building, 11 parking spaces; current tenant has occupied since built in 2004, on new 3-year lease plus 2 3-year rights of renewal
Outcome: sold for $950,000 at a 6.5% yield
Agent: Stephen Lange

Porirua

3-5 Commerce Crescent:
Features: 4719m² of industrial land
Outcome: sold for $501,000 at $106/m²
Agents: Grant Young & Jon Pottinger

Seaview

2-20 Port Rd:
Features: Port Domain, largescale fully tenanted business park on 2.9104ha of land in 4 titles, 3 street frontages & flexible general business zoning; 18,600m² of buildings, 12 tenancies spread across 10 main buildings plus extensive yard space
Rent: $1,465,162/year net + gst
Outcome: sold by Seaview HP Ltd (Shayne Hodge) for $17.65 million at an 8.45% yield
Agents: Grant Young & Mark Hourigan

Attribution: Agency release.

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Credit Suisse buys second Wellington tower

Credit Suisse Asset Management Ltd has bought the 25-level HSBC Tower in Wellington from local developer Mark Dunajtschik for $102.5 million.

CBRE Wellington managing director Matthew St Amand & senior director Bill Leckie handled the transaction.

The Ministry of Foreign Affairs & Trade is the biggest tenant of the HSBC Tower, at 195 Lambton Quay, occupying levels 10-24, being the bulk of the building. Other office tenants include HSBC & law firm Simpson Grierson.

Credit Suisse also owns the Justice Centre on Aitken St, and Mr St Amand said the bank had been looking for another high quality asset in New Zealand: “The fact they have invested in Wellington again demonstrates confidence in the stability & long-term outlook for the Wellington office market, as well as recognising Wellington as an attractive city for their long-term investment focus.”

Attribution: Agency release.

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6 commercial sales in lower North Island

Bayleys agents in the lower North Island have sold 6 commercial properties in Hawke’s Bay, Manawatu and at Paraparaumu Beach.

South of the Bombays

Hawke’s Bay

Dannevirke

69 High St:
Features: 617mcorner site, 693m² 2-level commercial building strengthened to 69% of new building standard; ground floor occupied by Westpac for many years, currently on 5-year lease from January 2017 with additional income for one-year from upstairs office tenancy
Outcome: sold for $706,000 at a 12.6% yield
Agent: Rollo Vavasour

Hastings

Woolwich, 1017 Manchester St:
Features: 5928m2 site adjoining Napier expressway, 1635m² clearspan industrial building built in 2015, 5.5m-7.6m stud height; 2 separate tenancies
Outcome: sold for $1million at an 8.4% yield
Agent: Rollo Vavasour

14 Senamor Place:
Features: 6740m² site overlooking Napier expressway, 663m² office building, leased for 6 years to civil construction company Russell Roads Ltd
Outcome: sold for $1.6 million at an 8.62% yield
Agent: Rollo Vavasour

Manawatu

Palmerston North

92 Kaimanawa St (pictured):
Features: 7442m² site, 9906m² distribution centre with high stud warehousing (10m at apex); Coca-Cola Amital (NZ) Ltd has occupied the building since its completion in 2003 and renewed for further 6 years in December 2017, with 3 3-year rights of renewal
Rent: $581,443/year net + gst
Outcome: sold for $8.3 million at a 7.0% yield
Agents: Mike Houlker, Sunil Bhana & Karl Cameron

Sanson

54-56 Dundas Rd:
Features: 4112m² development site on corner of State Highways 1 & 3, average of 12,000-plus cars passing daily, neighbouring site recently redeveloped for Z Energy Ltd
Outcome: sold for $501,000 at $121.5/m²
Agents: Bede Blatchford, Karl Cameron & Lewis Townshend

Wellington

Paraparaumu Beach

18 Seaview Rd, unit 5:
Features: 180m² unit-titled 1st floor office, new 4-year lease
Outcome: sold for $420,000 at a 7.7% yield
Agent: Stephen Lange

Attribution: Agency release.

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10 commercial auction sales south of Auckland for Bayleys

10 of the 14 commercial properties south of Auckland up for auction in Bayleys’ third Total Property series were sold under the hammer over the last fortnight.

5 were in Wellington and the others in Hamilton, Morrinsville, Rotorua (at Whakarewarewa, pictured above), Thames & Whitianga.

South of the Bombays

Bay of Plenty

Rotorua – Whakarewarewa

21 Sala St:
Features: 1012m² corner site, 312m² childcare centre developed in 2006 & licensed for 50 children; Evolve Group Ltd exercised the first of 2 6-year rights of renewal in March
Rent: $78,643/year net + gst
Outcome: sold for $1.155 million at a 6.8% yield
Agents: Mark Slade & Brei Gudsell

Coromandel

Thames

612 Pollen St:
Features: 126m² site in main street, rear access via a service lane; 170m² retail outlet, longstanding butcher tenancy on a 5-year lease from April 2017 with 3 3-year rights of renewal
Rent: $25,000/year net + gst
Outcome: sold for $372,500 at a 6.71% yield
Agent: Josh Smith

Whitianga

135 Albert St:
Features: 1.4373ha Harbourside Holiday Park, adjacent to the harbour, range of visitor accommodation plus 3-bedroom manager/owner’s dwelling, communal amenities, other facilities including powered & unpowered camping sites, swimming pool & adventure playground; potential for further development
Outcome: sold as freehold going concern for $2.85 million
Agents: Josh Smith & Belinda Sammons

Waikato

Hamilton – Frankton

28-30 Lake Rd:
Features: 919m²  corner site in 2 titles, 259m² 6-bay car wash & dog wash complex; leased for 5 years from March 2018 plus 4 5-year rights of renewal
Rent: $77,026/year net + gst, increases fixed to CPI plus reviews to market on renewal dates
Outcome: sold for $1.41 million at a 5.46% yield
Agents: Alex ten Hove & Mike Swanson

Morrinsville

51 Anderson St:
Features: 4442m² industrial site, 680m² warehouse & office building, drive-through access, previously occupied by Morrrinsville Transport for many decades
Outcome: sold vacant for $1.34 million
Agent: Josh Smith

Wellington

Naenae

10 Horlor St:
Features: 554m² corner site, also adjoining service lane, 288m² workshop
Outcome: sold with vacant possession for $450,000 at a land & building rate of $1562/m²
Rent: estimated potential income of $36,000/year net + gst
Agents: Andrew Smith & Paul Cudby

Petone

25 Fitzherbert St:
Features: 430m² warehouse & showroom, new 4-year lease to tenant which has relocated from the interconnected 4 Union St
Rent: $67,000/year net + gst
Outcome: sold for $1.02 million at a 6.57% yield
Agents: Paul Cudby & James Higgie

13 & 15 Gear St, Petone.

13 & 15 Gear St:
Features: 824m² site, 2 interconnected medium stud warehouses totalling 672m²; 13 Gear St vacant, 15 Gear St leased until 30 October at $2475/month gross + gst
Outcome: sold for $1.45 million at a land & building rate of $2157/m²
Rent: estimated potential income for both warehouses $85,000/year net + gst
Agents: Andrew Smith & Fraser Press

4 Union St:
Features: 389m² warehouse & office unit
Outcome: sold vacant for $880,000 at a land & building rate of $2262/m²
Agents: Paul Cudby & James Higgie

Te Aro

22 Allen St, unit 17:
Features: 214m² ground floor unit, storage, parking space, part of refurbished 2-level early-1900s building; leased to Ethiopian Restaurant for 5 years from June 2014, one 5-year right of renewal
Outcome: sold for $550,000 at a 10.5% yield
Agent: Mark Sherlock

Attribution: Agency release.

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3 commercial properties & an apartment sell in Wellington

Bayleys agents in Wellington have sold 3 commercial & industrial properties, one post-auction, and a Willis St apartment.

The Johnsonville building was passed in at Bayleys’ Total Property auction and subsequently sold.

South of the Bombays

Wellington

CBD

60 Willis St, unit 601:
Features: 178m² apartment, 3-bedrooms plus 80m² of deck, next to New World Metro supermarket
Outcome: sold for $1.26 million
Agent: Jon Pottinger

Gracefield

131 Gracefield Rd:
Features: 3527m² industrial site, 2536m² warehouse, office & yard, leased to GroeNZ Ltd for 3 years from March 2017 + one 3-year right of renewal
Rent: $300,000/year net + gst
Outcome: sold for $4.15 million at a 7.22% yield
Agents: Fraser Press & Mark Hourigan

Johnsonville

20 Johnsonville Rd:
Features: 272m² site, 567m² commercial building, 2 longstanding tenants on 6-year leases from 2016
Rent: $201,000/year net + gst
Outcome: sold for $2.525 million at a 7.96% yield after being passed in at $2.34 million
Agents: Fraser Press & Jon Pottinger

Porirua

7-9 Commerce Crescent:
Features: 7310m² in 2 titles, 4500m² sealed yard plus workshop & separate modern office & amenities, used as bus depot
Outcome: sold to an owner-occupier for $1.757 million
Agents: Fraser Press, Jon Pottinger & Bhakti Mistry

Attribution: Agency release.

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Precinct working on ANZ Centre deal, has conditional Wellington sale

Precinct Properties NZ Ltd says it’s working with one party on the sale of a 50% interest in the 39-storey ANZ Centre in Auckland and has an agreement to sell the quake-damaged former Deloitte House in Wellington (pictured) at a huge markdown.

Precinct chief executive Scott Pritchard said yesterday: “The half-share interest in the ANZ Centre has received very strong interest and we look forward to forming a long-term relationship with the preferred bidder.

“With several options for 10 Brandon St having been assessed to date, we believe the sale of this asset represents the best option for Precinct. Progressing these asset sales will enable Precinct to focus on and recycle capital into its future development opportunities.”

The company sought expressions of interest this year in a 50% interest in the ANZ Centre on Albert St in Auckland. The campaign has closed, and Mr Pritchard said pricing indications were at a premium to the June 2017 valuation of $324 million.

Precinct spent $76 million refurbishing the whole of the ANZ Centre after the bank committed to a new long-term lease in 2011. The building has a net lettable area of 33,520 m² and a weighted average lease term of 8.6 years.

Mr Pritchard said there’d been strong interest in the opportunity to take a 50% interest in the building. “Precinct has agreed to a period of exclusivity for one party to complete due diligence and enter into a binding sale & purchase agreement. At this stage there is no binding agreement for the sale & purchase of the property.”

Changing fortunes on Brandon St

Precinct took the former Deloitte House at 10 Brandon St, Wellington, out of its investment portfolio last year, when its value had already plummeted, and called it a development property. Then the company abandoned the idea of fixing it up itself and looked for a buyer.

It’s found one at $10.2 million, conditional on ground lessor approvals, and the sale is due to settle in August.

Deloitte House was valued at $62 million in 2008 but had dropped to $49.3 million, with a carrying value of $45 million, in 2015.

Following the November 2016 Kaikoura earthquake, the building needed to be remediated & seismically improved, and the valuation (and carrying value) dropped in 2017 from $49 million to $26.1 million, and the some more.

In Precinct’s report in March on the December 2017 half-year, the company said it had written the valuation down from $20.2 million in June to just $7 million in December.

The building had 14 storeys when it was constructed in 1983 and had 2½ new floors added during a retrofit in 2005-06. It also now has 34 basement parking spaces & ground-floor retail, and a total lettable area of 12,972m².

Attribution: Company release.

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Reconstruction a feature as 5 commercial properties sell in Wellington

Bayleys has sold 5 properties in Wellington in its Total Property series of commercial auctions, including the unusual reconstruction pictured – a restored cottage atop a café in the city fringe suburb of Mt Cook.

South of the Bombays

Wellington

CBD

31-35 Boulcott St:
Features: prime 551m² cbd site, standalone carpark building with seismic rating of 100% new building standard containing 95 spaces, 57 leased to Fairfax NZ Ltd, the balance vacant
Rent: Fairfax gross rental $223,860/year, estimated potential $240,000/year net + gst fully leased
Outcome: sold for $3.61 million
Agents: James Higgie & Mark Hourigan

Mt Cook

43 Hanson St:
Features: 661m² site, 1012m² building, seismic rating of 85% of new building standard, 2 levels of offices totalling 907m² plus 105m² warehouse & 14 parking spaces – 10 in basement 
Outcome: sold with vacant possession for $3.2 million
Agents: Mark Walker & Richard Faisandier

42 Wallace St:
Features: 218m² site, fully refurbished 3-level mixed use building, new 2-level 164m² commercial premises built for use as a café plus 115m² restored 2-bedroom cottage above
Rent: estimated potential $85,600/year net + gst
Outcome: sold with vacant possession for $875,000
Agents: James Higgie & Mark Walker

Newtown

26 Constable St:
Features: 864m² prime redevelopment site with 12m height limit, 700m² 2-level building, mix of office, showroom & warehouse, 11 parking spaces at the rear
Outcome: sold to owner-occupier for $1.771 million at land & building rate of $2530/m²
Agents: Mark Walker & Grant Young

Ngauranga

23 Centennial Highway:
Features: 5166m² site, 1038m² high stud warehouse & offices, 656m² yard, 2 tenancies with an average 9-year lease term, half leased to Department of Internal Affairs
Rent: $415,000/year net + gst
Outcome: sold for $6,128,700 at a 6.77% yield
Agent: Fraser Press

Attribution: Agency release.

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Heavy bidding on KFC outlet as 7 properties sell

7 commercial properties were sold at Bayleys’ Total Property auctions south of Auckland on Thursday and 2 were passed in. The highlight for the agency was the KFC outlet in Porirua, sold at a sub-5% yield after 160 bids.

South of the Bombays

Bay of Plenty

Tauranga

144 Third Avenue, unit 3:
Features: 184m² 3-level unit, 4 parking spaces, part of 7-unit Third Cove office complex overlooking expressway & inner harbour; tenanted by Brendon Gordon Architecture for 5 years from October 2015, 2 4-year rights of renewal
Rent: $48,000/year net + gst
Outcome: sold for $812,000 at a 5.9% yield
Agents: Brendon & Lynn Bradley

Manawatu

Palmerston North

84-88 Taonui St:
Features: 1147m² sealed site, 2 anchor corporate tenants, 45 parking spaces
Rent: $53,914/year net + gst
Outcome: sold for $730,000 at a 7.38% yield
Agents: Bede Blatchford, Karl Cameron & Lewis Townshend

Waikato

Putaruru

38-42 Princes St:
Features: 1204m² site, 1092m² Hammer Hardware bulk retail premises, 54m road frontage; 3-year lease from March 2017, 5 3-year rights of renewal
Rent: $60,000/year net + gst
Outcome: sold for $776,000 at a 7.73% yield
Agents: Mike Swanson & Alex ten Hove

Wairarapa

Masterton

193 Queen St:
Features: 1912m² site on main shopping strip, 610m² 2-level building recently strengthened to 80% of new building standard, 11 parking spaces; new 6-year lease to BNZ, 2 3-year rights of renewal
Rent: $87,424/year net + gst with annual CPI increases
Outcome: sold for $1.112 million at a 7.86% yield
Agents: Mark Sherlock & Kerry Geange

Wellington

Johnsonville

20 Johnsonville Rd:
Features: 272m² site, 567m² commercial building, 2 longstanding tenants on 6-year leases from 2016
Rent: $201,000 /year net + gst
Outcome: passed in at $2.34 million
Agents: Fraser Press & Jon Pottinger

Petone

258-260 Jackson St & 51 Beach St:
Features: 495m² site, including a 255m² undeveloped title used for parking for 11 vehicles; 2-level 207m² character building, 2 ground-floor shops totalling 107m², 97m² 4-bedroom flat above
Rent: $36,400/year net + gst
Outcome: sold for $825,000 at a 4.41% yield
Agents: Paul Cudby & Andrew Smith

45A & 45B Victoria St:
Features: 2 warehouse units configured as one totalling 311m² with 13 car parks and estimated potential rental income of $55,400/year net + gst
Outcome: sold with vacant possession for $1.11 million
Agents: Andrew Smith & Paul Cudby

Porirua

14 Hagley St:
Features: 1855m² corner site adjoining North City Shopping Centre, 230m² purpose-built KFC restaurant, 6-year lease to Restaurant Brands from February 2017, one 12-year right of renewal
Rent: $134,916/year net + gst
Outcome: sold for $2.75 million at a 4.91% yield
Agent: Mark Sherlock

47B Kenepuru Drive:
Features: vacant 256m² 2-level showroom & office unit, 7 parking spaces
Outcome: passed in at $332,000
Agents: Andrew Smith & Jon Pottinger

Attribution: Company release.

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Adelaide family makes Porirua mall its second NZ purchase

Kiwi Property Group Ltd has agreed to sell the North City Shopping Centre in Porirua to the Angaet Group of Adelaide for $100 million – $12.4 million short of book value. The transaction is due to settle in July.

It’s Angaet’s second New Zealand purchase following its acquisition of the WestCity mall in Henderson from the manager of Westfield Group’s New Zealand malls, Scentre (NZ) Ltd, settled last July.

In both cases, mall management has moved from the big portfolio owners and into the hands of real estate company Colliers.

Kiwi chief executive Chris Gudgeon said on Wednesday: “North City had been identified for sale as part of our capital recycling programme designed to fund current investment priorities. Proceeds from the sale will be used to pay down bank debt and provide further balance sheet flexibility.”

North City was on Kiwi’s books (at September 2017) at $112.4 million, with a cap rate of 7.63%. Kiwi has owned it since 1993, the year the company’s forerunner, the Kiwi Income Property Trust, was floated on the NZX.

The DiMauro family, under the leadership of Nick DiMauro & his son Michael, owns the whole of Angaet’s portfolio, which includes 25 shopping centres around Australia.

Nick DiMauro said yesterday New Zealand was an attractive investment location, and North City was a vibrant asset. The 3-level regional shopping centre has 98 tenants in a net lettable area of 25,439m² and 1102 parking spaces, and is anchored by Kmart, Farmers & a Reading Cinemas complex. It has 68 specialty retail tenants, 11 kiosks, 11 foodcourt tenants, and 8 office suites on the third floor.

The mall at 2 Titahi Bay Rd, Porirua, was built in 1990 and refurbished & extended in 1997 & 2004.

Attribution: Kiwi & Colliers releases.

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Judge scathing in assessment of Shelly Bay review application

High Court judge Peter Churchman was scathing in his dismissal, released on Monday, of Enterprise Miramar Peninsula Inc’s application for judicial review of the special housing area granted on Shelly Bay land in Wellington.

The judge might have been less scathing if he had looked beyond the purported purpose of the Housing Accords & Special Housing Areas Act which the National-led government enacted in 2013, and focused on how it failed to address the prospect of windfall profits from landbanking.

He might also have balanced his ruling by analysing more closely the Productivity Commission view which helped lead to the housing accords, that local councils contributed to unaffordability through their regulatory processes.

Thirdly, he might have balanced his decision by examining the Government’s contributions to unaffordability through its support of record immigration and failure to encourage the competition that could cut construction material supply costs.

The council planner handling the application accepted it in September 2016, but 2 months later the building housing the council’s resource consent team was significantly affected by the Kaikoura earthquake, delaying the processing of this application. It was approved, non-notified, subject to extensive conditions, in April 2017.

Enterprise Miramar Peninsula sought judicial review of the council decisions not to engage independent commissioners to determine the application, and secondly to grant the resource consent. The judge said the review case didn’t involve an appeal on the merits against the council’s decision or a challenge to the issuing of the order in council declaring Shelly Bay to be a special housing area.

The judgment is less about the rights & wrongs of The Wellington Co Ltd’s plans to develop initially 2.79ha, subsequently increased to 10.11ha, at Shelly Bay on the Miramar Peninsula, 8km from the Wellington cbd. Much of the flat land at Shelly Bay was reclaimed during World War I. After the war, it was the site of an air force base until 1995, when it was declared surplus to military requirements. Since 2005, Wellington City Council has owned an irregularly shaped a 1.6ha parcel of land largely along the waterfront, zoned business 1. Since 2010, the Port Nicholson Block Settlement Trust, representing Taranaki Whanui, has owned 2 separate parcels totalling 5.0445ha, which the trust acquired pursuant to its Treaty of Waitangi settlement with the Crown.

Judge notes 3 important points, skips 3 balancing points

In his judicial review decision introduction, Justice Churchman noted 3 important points – each bearing a significant failing which he didn’t note:

  • The Ministry of Business, Innovation & Employment said in its regulatory impact statement on the new law that it was an endeavour to respond to New Zealand’s “significant housing affordability problem”
  • Passing of the law had been preceded by a report from the Productivity Commission on housing affordability, and
  • The commission had identified both the Resource Management Act & local authorities’ consenting processes as contributing to the perceived housing shortage.

The failings?

  • The proponent’s word on a new law should never be taken as gospel
  • The Productivity Commission’s work on affordability fell well short of a balanced assessment, and
  • Local government process failings were no match for the uncontrolled demand from high immigration & uncontrolled foreign speculation in the housing market.

Most important, though, was a consideration which the new law was specifically intended to override: the caution in local government processes following the early days of the multi-billion-dollar leaky building crisis.

While it is not for the courts to question legislation, it is certainly within a judge’s gambit to question the stances of authorities, including those of ministries & government organisations such as the Productivity Commission.

Instead, Justice Churchman used officialdom’s assertions to knock down questions about whether this was the right process for long-term development.

Enterprise Miramar Peninsula used similar arguments in different attempts to defeat the Shelly Bay development proposal and, having rejected them in one guise, the judge wasn’t about to let them through under another.

Enterprise Miramar contentions

The society argued in one instance that The Wellington Company’s proposal for Shelly Bay didn’t have the “characteristics” anticipated by the special housing area legislation, then developed an argument that the Wellington City Council had misinterpreted its powers under the act “and used them for the improper purpose of authorising a development that is not envisaged by the act”.

Enterprise Miramar argued that the act was “designed for well prepared, ready to-be-built developments that can and will be quickly constructed following a fast-tracked process for the grant of resource consents.

“It then went on to say: A development that is so significant that it requires a masterplan to progress is obviously inappropriate for streamlined Special Housing Areas Act processes.

“The applicant also said that the 13-year lapse period was ‘out of line with Resource Management Act practice in general’ and concluded that ‘evidence confirms that this development should have been considered & consented (if appropriate) through the usual Resource Management Act processes, not the Special Housing Areas Act”.

On both the society’s arguments, Justice Churchman said: “It is not possible to say that the only developments contemplated by the Special Housing Areas Act are those that can be built immediately.

“It is also equally as untenable to submit that this application should have gone through the Resource Management Act processes as opposed to those of the Special Housing Areas Act. Such a submission overlooks the fact that the subject site was initially assessed by Wellington City Council as being suitable for a special housing area and then declared as such by the minister.

“The proposal was for a qualifying development. The applicant was entitled to apply under part 2 of the Special Housing Areas Act and the council was obliged to consider the application against that framework.

“Part 2 of the Special Housing Areas Act provides an alternative consenting process that is effectively a substitute for the Resource Management Act procedures, and the statute anticipates that qualifying developments under the Special Housing Areas Act may be successful even though they might not be under the Resource Management Act.”

SHA creation “unchallenged & unreviewable”

Justice Churchman then launched, in closing, into a hyena-style upbraiding of Enterprise Miramar and the rights it thought it would get under the special act: “The applicant’s witnesses don’t seem to have accepted that the decision by the minister to declare the subject site a special housing area was unchallenged at the time and is not reviewable in these proceedings.

“The witnesses also do not seem to understand or accept that the procedures mandated under the Special Housing Areas Act, particularly in relation to notification & the opportunity for input by entities such as the applicant into the decision-making process, are very different to those under the Resource Management Act.

“A telling example of this is a passage in the evidence of Thomas Wutzler which says: ‘Enterprise Miramar has brought this judicial review to seek to overturn the resource consent that has been granted to extensively develop Shelly Bay. We are hoping that the judicial review will roll the consent over, that the process for getting approval to develop Shelly Bay will have to start again, and that that outcome may open the door for others to put forward better development proposals now that the Miramar community is able to have a say on, and that we can ultimately have confidence in the outcome of.

“The Special Housing Areas Act simply does not provide for ‘the Miramar Community’ to ‘have a say’ on applications such as this.

“The report from the NZ Productivity Commission on housing affordability, which preceded the Special Housing Areas Act, noted that local authorities’ consenting processes were contributing to the perceived housing shortage, as were the procedures of the Resource Management Act.

“It is ironic that this resource consent has not been able to proceed with the speed envisaged by the Special Housing Areas Act as a result, in part, of delays in processing it by Wellington City Council and, in part, because of the actions of the applicant in, among other things, attempting to persuade the court that the application should have been brought under the Resource Management Act.”

What was proposed

The Wellington Co and the Port Nicholson Block Settlement Trust’s joint venture company, Shelly Bay Ltd, will own the land. The council has agreed to enter into an arrangement with The Wellington Co to sell to it or enter into a 125-year lease of the land it owns at Shelly Bay to facilitate development of the special housing area.

The developer proposed building about 350 homes – 280 apartments in 12 multi-level apartment buildings, 58 townhouses & 14 individual dwellings. It’s also proposed a 50-bed boutique hotel and possible construction of an aged-care facility accommodating 140 residents.

As well as buildings to accommodate commercial & community activities and the adaptive reuse of buildings such as the submarine mining depot barracks, officers’ mess and shipwrights building, there is also provision for the development of a village green public open space and for the realignment of the road through Shelly Bay.

Masterplan & design guide

Instead of providing a detailed design for each proposed building, the application was made on the basis of a masterplan setting out building locations, footprint, maximum building envelope & activity use. There was also a proposed design guide within which the design parameters for the proposed structures would fall.

The maximum height of the proposed buildings was the 27m permitted under the Special Housing Areas Act, rather than the much lower height limit in force in the business 1 zoning.

Justice Churchman noted: “In the application process, unsurprisingly, there was close collaboration between the commercial arm of the council & The Wellington Co in relation to the preparation & submission of the application. In accordance with the provisions of section 29 of the Special Housing Areas Act, the application was neither notified nor was a hearing held.”

Link: 9 April 2018, High Court judicial review decision

Earlier stories:
22 August 2016: Commission sees government change as essential for urban planning
10 August 2015: Council has forthright message for Government on land for housing
19 June 2015: Commission looks behind high land prices
7 November 2014: Productivity Commission launches land supply regulation inquiry
13 April 2012: Productivity Commission misses key affordability point – again
10 February 2012: Council presents the garbled nonsense response on housing affordability
19 December 2011: Housing affordability report an exercise in missing the target

Attribution: Review decision.

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