Shortlisted development and investment consortia don't pass muster for the Tāmaki Regeneration Company

Shortlisted development and investment consortia don't pass muster for the Tāmaki Regeneration Company

The government and Auckland Council owned Tāmaki Regeneration Company (TRC) has decided to build 2,500 new Auckland homes without a large scale development and investment partner.

TRC is tasked with building more than 7,500 new homes over 15 years to replace 2,500 existing state houses in the Auckland suburbs of Glen Innes, Point England and Panmure. It ran a procurement process last year seeking a developer and investor with the capability and experience to redevelop about 1,000 existing social homes into about 2,500 new state, affordable and private market homes.

Last October a TRC spokeswoman told interest.co.nz the outcome of the procurement process was subject to ministerial approval, with an announcement likely in late 2017. No announcement came.

Interest.co.nz asked last month why there had been a delay, whether this has anything to do with the widely publicised problems at Fletcher Building, and when an announcement was likely.

"After a robust procurement and evaluation process, the shortlisted parties have not met the requirements to become our large-scale development and investment partner. TRC has a strong track record in delivering new houses and working with the community to transform the lives of Tāmaki people. We will continue to work with the Government, and our building partners, to ensure the future delivery of our housing programme,"  the spokeswoman said in comments she attributed to Tamaki Regeneration Company chief executive John Holyoake.

The two shortlisted parties were Exemplar Communities Consortium and Tūhono Tāmaki Consortium, according to the spokeswoman. Exemplar Communities Consortium included  AV Jennings, Classic Builders, Universal Homes, Spotless, AMP Capital and Capella Capital. The Tūhono Tāmaki Consortium included Fletcher Residential, Fletcher Building, Ngāti Whātua Ōrākei Whai Rawa Limited, Programmed FM NZ Ltd, Macquarie Capital (New Zealand) Ltd and Public Infrastructure Partners II LP.

"Tāmaki Regeneration Company will continue to deliver new homes in small to medium-sized neighbourhood developments. To date, 292 new houses have been constructed in Tāmaki. A further 648 homes are in the construction pipeline, either under construction or with earth or civil works underway. TRC has an experienced panel of development partners, including Fletcher Residential, who we will continue to work with to deliver housing in Tāmaki," she said.

Earlier this month TRC issued a request for proposal as it seeks a lead arranger bank to organise between $180 million to $330 million of loans.

The company is 59% Crown owned and 41% Auckland Council owned. TRC received $200 million of taxpayers' money via a five-year government loan, said to be on commercial terms to get the project underway quickly, in 2015. 

Speaking via a spokeswoman, Housing and Urban Development Minister Phil Twyford indicated he was comfortable with the approach taken by the TRC.

“Tāmaki Regeneration Company already has a flexible and responsive model for delivering housing and transforming Tāmaki. To date, 292 new houses have been constructed and a further 648 homes are in the construction pipeline, either under construction or with earth or civil works underway," Twyford said.

“I have been advised by TRC that the performance of Fletcher Building was not considered as part of the RFP [request for proposal] evaluation. TRC has also advised me that Audit New Zealand, who monitored every step of the evaluation process, confirmed the company ran a fair process that met Government Rules of Sourcing which requires all respondents to be treated equitably," Twyford added.

Interest.co.nz last year reported on the Manaiakalani Housing Consortium. Led by former Housing NZ chairman Pat Snedden, this group was keen to be involved in the Tāmaki regeneration project via a community-based model it proposed. The Manaiakalani Housing Consortium's proposal was rejected by the TRC.

*This article was first published in our email for paying subscribers. See here for more details and how to subscribe.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

2 Comments

Comment Filter

Highlight new comments in the last hr(s).

A "robust" process is code for: it was a balls-levitation.
We now await the prices for the rail tunnel project.

I am not surprised by the lack of market interest.
While it may not be too hard selling 3 bedrrom townhouses in 'Glen Innes Heights' for $1 million it is a different story in 'Central GI'