The NZ Super Fund, Ngai Tahu Property Ltd & New Ground Capital Ltd have teamed up to invest in a $113 million project to develop 200 new homes – including long-term rentals – at Hobsonville Point by late 2018.
They will buy 1.95 ha 2 super lots from Housing NZ Ltd subsidiary the Hobsonville Land Co Ltd. The Super Fund & Ngai Tahu Property will invest 48% of the development capital each and New Ground Capital 4%.
About 50% of the properties will be priced under the Auckland median house price and 30% will be priced at $550,000 or below under the Hobsonville Point affordable homes programme. The partners plan to sell about three-quarters of the homes as they are developed, and hold the remaining quarter as market-based long-term rentals.
The deal is the first co-investment between the Super Fund & Ngai Tahu. Super Fund chief investment officer Matt Whineray said yesterday Ngai Tahu Property was an attractive co-investor for the fund: “We have compatible values and our collective scale has been integral to the feasibility of this investment. We look forward to working with Ngai Tahu’s highly experienced property development team.”
Ngai Tahu Property’s incoming chief executive, David Kennedy, said the company saw this project as a perfect entry into the Auckland market and an opportunity to develop a strong partnership with the Super Fund: “Ngai Tahu Property chooses to align with organisations that exhibit a value set that mirrors our own, values that go well beyond a financial framework.”
Ngai Tahu Property will act as development manager, overseeing the construction of the houses. New Ground Capital will run the rental component of the investment.
New Ground Capital managing director Roy Thompson said: “We are pleased to be working with the Super Fund & Ngai Tahu Property to bring a high quality development, including what is an innovative long-term rental concept, to the New Zealand market. Families seeking security of tenure close to Hobsonville Point schools will find these rental properties & lease terms very attractive.”
The development will offer a mix of housing typologies ranging from apartments and terraced housing, through to standalone houses. Construction is scheduled to start in the second quarter of 2016 for completion of the whole package by late 2018.
New Ground Capital is owned by lawyer & company chair Greg Horton and 3 bankers – Roy Thompson, Brian Collins and chief operating officer Jonathan Holden.
Attribution: Joint release.