The NZ Super Fund, Ngāi Tahu Property Limited and New Ground Capital have teamed up to invest in a new housing development at Hobsonville Point in Auckland. The NZ$113 million project will see around 200 new homes developed by late 2018.
Together, the investors will purchase 1.95 ha of former NZ Defence Force land, in two super lots, from the Hobsonville Land Company, a subsidiary of Housing New Zealand. The NZ Super Fund and Ngāi Tahu Property are each investing 48% of the capital required for the development, with New Ground Capital contributing the remaining 4%.
Around 50% of the properties will be priced under the Auckland median house price and thirty percent will be priced at $550,000 or below under the Hobsonville Point affordable homes programme. The partners plan to sell around 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 NZ Super Fund and Ngāi Tahu. NZ Super Fund Chief Investment Officer Matt Whineray said Ngāi 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 Ngāi Tahu’s highly experienced property development team.”
Ngāi Tahu Property’s incoming CEO, David Kennedy, said the company sees this project as a perfect entry into the Auckland market, and an opportunity to develop a strong partnership with the NZ Super Fund. “Ngāi Tahu Property chooses to align with organisations that exhibit a value set that mirrors our own, values that go well beyond a financial framework”.
Mr Kennedy also said that Hobsonville Point had proven to be a successful master planned development with excellent amenity.
Ngāi Tahu Property will act as development manager, overseeing the construction of the houses. New Ground Capital will run the rental component of the investment.
Roy Thompson from New Ground Capital said: “We are pleased to be working with the NZ Super Fund and Ngāi 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 and lease terms very attractive.”
The development will offer a mix of housing typologies ranging from apartments and terraced housing, through to standalone houses.
Construction commences – Q2 2016
Programmed completion – Q2 2019