Christchurch subdivisions: Heat gone?

Received from Lee Vandervis
Mon, 30 Mar 2015 at 10:37 p.m.

█ Message: Your readers may be interested in the claim in the following Press article that the heat has gone out of the Christchurch subdivision market with several other developments in trouble as well as Noble.

### stuff.co.nz Last updated 05:00 28/03/2015
Source: The Press
Gloomy outlook for solar housing in Christchurch
Has liquidation ended development dream?
By Liz McDonald
Is the vision of Highfield Park over? Fast-tracked by the Government and bigger than Hagley Park, the planned north Christchurch subdivision would have had 2200 solar-powered homes. The High Court this week placed its developers, Highfield Park Ltd, in liquidation over unpaid bills from engineering firm Tonkin & Taylor.

The 260-hectare subdivision site is a piece of farmland between Redwood, Mairehau and Marshlands. Its 2013 rezoning for housing was hastened under Earthquake Recovery Minister Gerry Brownlee’s new land-use plan but development stalled last year as the company struggled to find funds. In the meantime, the company’s options to purchase land for the development expired. Highfield Park Ltd is co-owned by the project’s founder, Christchurch engineer Roy Hamilton, his business partner, Brian Thompson, plus other investors.

Hamilton could not be contacted for comment following the court decision but he has previously confirmed the company had returned all section buyers’ deposits after missing project deadlines. Any creditors have until May 12 to contact liquidators about money owed. Highfield Park was intended to be New Zealand’s first solar-powered community and would house 5000 residents, offering ready-built homes as well as sections priced between $160,000 and $240,000. The plan included parks and two commercial areas with shops and cafes. Ground testing has revealed the land was a mix of TC1, TC2 and TC3 land, and needed some remediation. The first section titles were to have been ready by the end of last year.

An experienced Christchurch land developer, speaking on condition of anonymity, doubted anyone else would adopt the project. “The heat’s gone out of the market and it’s not a good time to start launching a major subdivision.” The developer said the Highfield project had struggled without control of the land or sufficient financial backing. He estimated up to $1 million could have been ploughed into the project already.

The development is not the only big-scale subdivision to have hit hurdles. Progress on Groynes Park near Belfast has stalled and its developers have managed to ward off liquidation bids from creditors. The company has promised work will resume soon. Ravenswood, half an hour north of Christchurch, is being offered for sale by developer Infinity Investment Group, which says the project is too big for it.
Stuff Link

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23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II….

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

3 responses to “Christchurch subdivisions: Heat gone?

  1. Diane Yeldon

    This is interesting. It reminds me that I read Sir Bob Jones voicing the opinion that you couldn’t just rebuild central Christchurch as a commercial centre and make it financially viable. I sort of got the message that cities aren ‘t just a conglomeration of buildings but rather based on dynamic social interactions built up over a long period of time.
    This news makes me wonder whether residential subdivision is the same. I know overseas whole cities have been built from scratch – and nobody came to live there. An extreme case of ‘ build it and they DON’T come.

  2. Elizabeth

    A year ago the Christchurch subdivisions started to fail, now it’s the turn of the building companies. Ngai Tahu and the wider construction industry are saying things will get nasty.

    Received.
    23/02/2016 5:37 p.m.

    From: Gary Whiteside
    Sent: Tuesday, 23 February 2016 9:29 a.m.
    To: All Christchurch Users
    Cc: John Coop; Andrew Barclay
    Subject: Stonewood homes & Sterling homes in receivership

    [Stonewood Homes franchisor, Stonewood Christchurch in receivership
    Last updated 09:10, February 23 2016
    IAIN MCGREGOR/FAIRFAX NZ
    The receiverships will not affect any of the other independently owned Stonewood franchises. Stonewood Homes is in receivership at the request of the companies’ director, KordaMentha said on Tuesday. Grant Graham and Neale Jackson of KordaMentha have been appointed as receivers to Stonewood Homes New Zealand Limited, and sister companies Stonewood Homes Limited and Sterling Homes Limited. Stonewood Homes NZ Ltd is the master franchisor for the Stonewood Homes network. Stonewood Homes Ltd holds the Stonewood franchise for Christchurch. The receivers said the receiverships did not affect any of the other independently owned Stonewood franchises operating throughout New Zealand. “Having just been appointed, we are working as quickly as possible to establish the companies’ financial position and a path forward for the receiverships. We will communicate with all affected parties as we work through this process,” Graham said.]

    Regards

    Gary Whiteside
    Credit Manager

    WARREN AND MAHONEY
    AUCKLAND | WELLINGTON | CHRISTCHURCH | QUEENSTOWN | SYDNEY | MELBOURNE
    Registered Architects and Designers | carboNZeroCertTM certified architects
    warrenandmahoney.com

    Issued on behalf of Warren and Mahoney Architects Limited
    Electronic data files are provided by Warren and Mahoney subject to conditions

    Updated Fairfax story says STONEWOOD ONE OF CANTERBURY’S LARGEST BUILDERS
    http://www.stuff.co.nz/business/industries/77166933/stonewood-homes-franchisor-stonewood-christchurch-in-receivership

    ### radionz.co.nz Updated at 9:13 am on 24 February 2016
    RNZ News
    Clients of embattled Stonewood Homes given reassurance
    Clients of Stonewood Homes in Christchurch will have their properties completed but there may be delays, the Registered Master Builders Association says. The building company was placed in receivership yesterday with debts estimated at $15 million. It has 110 homes being built in Christchurch. Association chief executive of David Kelly told Morning Report all the homes had Master Build Guarantees. Receivers were expected to update homeowners on progress by the end of the week. […] KordaMentha partner Grant Graham, who has been appointed receiver, said the company had been looking for fresh capital and hoped interested investors might now buy the business or some of its assets. […] The receivership does not affect any other independently owned Stonewood franchises.
    Full report

  3. Elizabeth

    Excluding Canterbury, South Island data activity was up 5.4%, boosted by Otago work.

    ### ODT Online Fri, 4 Mar 2016
    Construction at record level
    By Simon Hartley
    Building activity has reached a 26-year high, underpinned by increasing work in Auckland and despite a waning of activity in Canterbury. Analysts are picking a continuing strong contribution from the construction sector during at least the next two years, underpinning the country’s economic growth.
    Read more

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