Auckland Council has begun a process to attract NZ$1 billion of private investment in the development of prime waterfront land.
The investment opportunity relates to the development of sites in Wynyard Quarter, the former semi-industrial space and currently New Zealand’s largest urban regeneration project outside of Christchurch.
The Council has spent NZ$156 million on the Wynyard Quarter project to date, and the private investment will deliver the staged development of New Zealand’s first innovation precinct, commercial office space and some 600 to 1,000 residential units.
The first tranche of privately funded development is a 28,000sqm block bound by Jellicoe, Madden, Halsey and Daldy streets to be known as Wynyard Central. The total project comprises around 150,000sqm of gross floor area, made up of approximately 50,000 sqm commercial use and 100,000 sqm residential.
Wynyard Central includes office space focused on a commercial innovation hub and residential use and international hotel site.
The residential plan envisages 988 new apartments averaging 88 m2 for about 1900 people in eleven separate buildings. Among other cities scoured for design ideas, Malmo, Sweden is one the council staff are seeing as a model.
Housing diversity is a stated goal and 'family friendly' was stated by Mayor Len Brown as something being aimed for.
Waterfront Auckland chief executive John Dalzell said prices were expected to range from $500,000 at the low end, with most units around $1.2 to $1.3 million, and high-end apartments more than double this. Typical prices were anticipated in the $8,000/m2 range.
While some units were expected to have no car parking with them, most would and he said and some would be built with multiple car parking per unit. "Innovative" parking arrangements are being sought from the developers.
As the council will retain all land ownership in Wynyard Quarter, all housing will be sold on a leasehold basis - something the council does not see as a problem despite widespread uncertainty and distrust of such arrangements elsewhere in the city.
“Finding appropriate private sector partners that share our philosophy and vision to create authentic and vibrant waterfront spaces will no doubt be challenging. We expect competition will be strong as this unique opportunity will continue to shape Auckland’s future," said Dalzell.
“This is a once in a lifetime opportunity to invest in one of the last remaining prime CBD waterfront sites in New Zealand. We are setting out to deliver a waterfront area that is truly world-class."
Mayor Len Brown says the Wynyard Central development has the potential to be a progressive example for Auckland-wide initiatives that focus on "quadruple bottom-line outcomes" and performance (Social, Cultural, Economic, Environmental). “The waterfront redevelopment will serve as a catalyst for positive outcomes for the whole region: job creation, innovation, exporting and tourism growth."
“Growth is what we need right now and the waterfront is estimated to support nearly 7,000 direct full-time jobs by the end of 2013, generating NZ$710 million in direct GDP per year. Over the five years to 2018, this impact is expected to rise to nearly 11,000 direct full-time jobs and NZ$1.2 billion in direct annual GDP."
“Once upstream and downstream impacts are included, these figures more than double, supporting jobs and economic production across Auckland. This is a significant economic move for the region.
“Private investment partners are essential to making it happen. The scope of the development Waterfront Auckland is undertaking means it cannot be ratepayer or taxpayer funded alone.”
The first stage in the waterfront investment and development process is expected to start in April with an expression of interest to previously identified investment and developer prospects.
The plan also includes a 200-plus room, five-star hotel on the site of the Team New Zealand yacht base, for which investment of between $70m and $90m will be sought. Mayor Brown has travelled to China promoting the city and the innovation precinct projects, and Dalzell and Waterfront Auckland chairman Bob Harvey will soon travel to China with the prime minister's delegation to speak with investors about the hotel site.
Neither the Mayor nor Waterfront Auckland bosses would be drawn on the level of incentives they may be offering. They insist all development will be "market transactions". Mayor Brown stated that "no incentives are expected" as this development rolls out because of the very high level of private sector interest to date.
When pressed on the level of incentives provided for the ASB/KIPT development for the ASB's new headquarters, they declined to be specific, insisting it was a "market transaction". interest.co.nz has sought disclosure on the incentives for the Wynyard Wharf restaurant strip. While indicating there were some necessary to kick-start the area ahead of the Rugby World Cup and that some arrangements are ongoing, they have declined to respond with specific values involved.
Some ratepayers may wonder why the council will charge full fees for their personal developments, but be open to "market transactions" in these billion dollar projects.
(Updated with information on Council delegations to China to promote the City and the project.)
7 Comments
Not mentioned in your article :
In he Herald today:
Asked if he saw Wynyard Quarter as an exclusive enclave for the rich given the high value of the waterfront land, Mr Brown said: "In due course we will get through the appropriate configuration of housing choices and options."
In Political speak : "If you can't afford to stay here, don't stay here "
Some ratepayers may wonder why the council will charge full fees for their personal developments, but be open to "market transactions" in these billion dollar projects.
The reason is Len Brown's own personal crusade to justify his train project and load Aucklanders another $3billion in liabilities....not to to mention his name forever remembered.....
"Housing diversity is a stated goal and 'family friendly' was stated by Mayor Len Brown as something being aimed for."
"The residential plan envisages 988 new apartments averaging 88 m2 for about 1900 people."
At an average occupancy of less than 2 people per dwelling, the majority must be single parent families who will be buying these units. Will WINZ be buying the units for their clients on the DPB?
The picture model for the development is more than a little interesting, the subtle seeds sown to attract the right kind of investor.
Now you can't deny there must have been some deliberation in the pinup choices.
deary me,they really do think you stupid for the most part.
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