Warkworth land designated for housing development by the New Zealand Super Fund and the Classic Group.Photo / Attachment
Tauranga-based state housing company Classic Group and New Zealand SuperFund have established a $ 300 million partnership to help build thousands of new homes.
Kahaake [Stronger Together] Partnership, New Zealand
Supermarkets have an 80% share and are focused on meeting the chronic demand for high quality, affordable homes.
We will work with governments and parliaments to tackle important infrastructure issues and unlock land. Thousands of jobs will be created nationwide with new communities.
The NZ Super Fund also wants to grow its real estate portfolio, including large hotel portfolios and other build-to-cell or rental development.
The first Kaha Akei Initiative will take place in Warkworth South, with approximately 530 homes planned on the outskirts of a new community called Waimanawa. This proposal could include 4ha of public open space, an extensive network of waterfronts. [stream corridor] 1ha on the sidewalk and in the center of the village.
NZME said the joint venture is “a gloved scenario because it requires sound financial support to operate at a larger pace and scale in the industry,” said Peter Cooney, director of the Classic Group. Told to.
“This is an opportunity to find innovative solutions to some of the complex and historical challenges of the real estate sector. The New Zealand Super Fund has been very involved over the long term to help find solutions to the housing crisis. doing.”
Cooney said infrastructure is one of the major issues he wanted to address.
“For example, Taurico needs to invest about $ 105 million in infrastructure to open it. In this scenario, Kahaake could come to the table and fund the infrastructure.”
Securing a contract with the New Zealand Pension Fund was “huge,” according to Cooney.
“As a company, that’s always what we wanted to achieve and we’re really honored to be chosen. Currently, there aren’t many people in New Zealand who can grow on a large scale. A company that builds 30,000 homes.
“It’s very exciting to be able to partner with someone who has the expertise we provide, but who has the financial capabilities and the long-term commitment.”
Cooney said other development sites will be announced in the future.
Hisham Mirza, FDI Manager of NZ Super Fund, said the investment is part of a broader strategy to increase the fund’s exposure to real estate.
“Our capital will help create breakthrough moments in sectors suffering from interrelated challenges such as affordability, land supply, undersize, inadequate infrastructure and compliance. believe.
“In line with our commitment to responsible investment, sustainability is at the forefront of Kahaake’s approach.”
He said real estate investment was attractive in New Zealand.
“We are delighted with a long-term perspective. We have the capital to support development, but not some of the other smaller players. It’s a big sovereign wealth fund. It’s only natural for us-the pressure on the housing market will not go away in the medium to long term, so we want to be part of the solution. “
Matt Cowley, CEO of the Tauranga Chamber of Commerce, said the announcement was an important milestone for the development industry.
“It costs a lot of initial costs to bring about this scale of development. Traditional lending services can be risk averse. The success of the joint venture with the NZ Super Fund will have positive consequences for the community. At the same time, it opens up possibilities for future development. Economic benefits to the NZ Super Fund. “
Affordability of housing has been an important factor in addressing the shortage of skilled workers, and many companies have hampered productivity gains.
“The construction phase provides the industry with a lot of local work, but the lasting economic benefits come from addressing housing shortages in most parts of New Zealand.”
Nigel Tutt, CEO of Priority One, said it was important to be able to scale development quickly and cheaply.
“It’s great to see this kind of partnership, and it’s great if they can unlock the infrastructure.”
Auckland Mayor Phil Goff said the council plans to significantly expand housing and employment in the Warkworth area over the next 30 years, allocating approximately 1,100 hectares of land for the city of the future. ..
He said this growth would require significant investment in infrastructure support, including transportation and water and sewer upgrades.
” The council staff [ Kaha Ake] As a developer, he works on planning and infrastructure issues. “
Yesterday, Labor and the public joined forces on a radical new housing policy, the Housing Supply Bill. They say this will help address the housing crisis by allowing them to build up to 105,500 new homes within 10 years.
The government said the law would build at least 48,200 new homes and up to 105,500 new homes in the next five to eight years.
This is achieved by allowing most sites to build up to three homes with up to three floors without the need for costly and frustrating resource consent.
About the classic group
• Has an integrated business portfolio with 25 years of experience in the real estate sector.It is privately (and locally) owned and includes Classic Developments and Classic Builders
• Classic Development has developed over 4,000 lots to date and currently supplies over 3,000 sections of land. Classic Builders has built more than 6,000 homes to date.
• Classic has partnered with local and central governments on many projects to participate in the Kiwi Build initiative in Tauranga and Christchurch.
• Classic Group was founded in 1996 by the directors of Peter Cooney and Matt Lagerberg, is headquartered in Tauranga and employs more than 300 staff.
About NZ Super Fund
• The $ 58 billion NZ Super Fund is a global investment fund established by the New Zealand Government to support pre-funded universal superannuation. A long-term growth-minded investor, the fund has generated 10% annual revenue since its inception in 2003 and currently invests more than $ 7 billion in New Zealand. This includes large investments in Kaingaroa Timberlands, Datacom, Kiwibank, Fidelity Life, NZ Gourmet, and various local listed companies.
• For more information, please visit www.nzsuperfund.co.nz.
NZ Super Fund and Classic Group Offer Thousands of New Homes Through $ 300 Million Partnership
SourceNZ Super Fund and Classic Group Offer Thousands of New Homes Through $ 300 Million Partnership