The week in real estate development – 10 June 2021

Contact property consultant Chris Farhi at Colliers Strategic Advisory to request an email notification for this weekly update of the biggest real estate development news from New Zealand and around the globe….

New Zealand real estate development news

• Chris Farhi Vlog: The vlog checked in on One Queen Street after Precinct Properties' announcement that construction will begin on the redevelopment (below).
• Construction begins on One Queen Street redevelopment project: Precinct Properties has announced that construction will begin shortly on One Queen Street in Auckland. The redesigned project will include a 139-room hotel, 14,000 sqm of office space, plus food and beverage. Completion of the $305M project is expected in late 2023.
• Residents move into new cooperative housing development: Residents have started moving into the new cooperative housing development Cohaus in Grey Lynn, Auckland. The $20M development includes 20 homes priced from $550,000 for a 40 sqm studio to $2M for a 180 sqm five-bedroom townhouse. The development includes an electric car stacker, Ikea kitchens and bathrooms, a communal laundry, and a central garden.
• Icon Co appointed to build the Indigo Hotel and apartments: Icon Co has been appointed to build the Indigo Hotel and apartments in central Auckland. The 41-storey tower will maintain the heritage fa?ade and include a 225 room hotel and 13 floors of apartments. Construction is expected to take 32 months.
• Government plans cycling and walking bridge next to Auckland's Harbour Bridge: The Government has confirmed plans for a standalone bridge for cycling and walking next to the Harbour Bridge. Funding has been approved for the $685M project. It is expected to take five years to complete.
• Construction milestone for Costco: The roof has gone on Costco’s Auckland three-level $100M warehouse. The 14,740 sqm development is expected to be completed in 2022.
• Union Square precinct developments: The first of five buildings planned for the Union Square Precinct in Hamilton is nearing completion. The five-storey building will be occupied by Rabobank and AA Insurance. Later this year work will start on the next two buildings including a 327-bay car park building. The precinct will ultimately comprise 23,000 sqm of office, retail and community space and a wellness centre.
• Sleepyhead development gains approval: Sleepyhead has gained approval for a billion-dollar industrial and housing development in ōhinewai, Waikato. The 178-hectare development will include 1,100 homes for up to 3,000 people and provide for 2,600 jobs.
• Tauranga City Council seeking to recover costs after car park defects: Tauranga City Council are taking legal action against the building design and peer reviewer for the Harrington Street car park project. Serious seismic defects were found in the project after the council had invested $20.5M in construction. The car park was sold for $1 to a subsidiary of the lead project contractor earlier this year to avoid the cost of demolition and rebuilding.
• National Aquarium denied government funding: Napier City Council’s plan for a $77M national aquarium in Napier, will not go ahead after the government denied $35M funding. The aquarium was proposed to replace the existing 1973 aquarium, with the design resembling stingrays.
• Wattie’s complete pet food factory refurbishment: Wattie’s has completed a $20M refurbishment of its pet food factory in Hastings. The 4.5-year refurbishment project aimed to future-proof the company for domestic and international demand.
• Ryman Healthcare agrees to redesign retirement village complex: Ryman Healthcare has agreed to redesign a retirement village complex in central Christchurch. The $240M proposed development will include six buildings with 165 apartments, 54 assisted living sites, 70 rooms for dementia care, a swimming pool, restored heritage chapel and 144 car parks. Neighbours had shown concern over the loss of sun and daylight from the development.
• Collett’s Corner residential development is not going ahead: The Collett’s corner residential development in Christchurch had been cancelled due to rising costs. The project was to include apartments, co-living spaces, a wellness centre, and hospitality units. Construction was expected to begin in 2022 with 8 of 20 apartments already presold. The development was funded through crowdfunding with over 600 shareholders.
• Remarkables Park Ltd plan research and innovation hub: Remarkables Park Ltd plan to develop a $45M research and innovation hub in Queenstown, with $22.5M of funding via the government. The development will include 6,000 sqm of research and innovation spaces, and aims to diversify the area from its focus on tourism.
• KiwiRail Hillside redevelopment: KiwiRail’s Hillside workshops will undergo redevelopment this year with $85M funding from the government. The redevelopment projects will include new workshops, wagon assembly facilities, and offices. The redevelopment will be completed by mid-2023 and create 250 construction jobs.

Global real estate development news

• Plans for two health developments within the Randwick Health Campus: Health Administration Corporation has lodged plans for the redevelopment of the Sydney Children’s Hospital and a new Children’s Comprehensive Cancer Centre. The $608M project will have a gross floor area of 36,072 sqm. The University of NSW has also lodged plans for a 16-storey education and research building to connect to the building via a skybridge. The $250M project will have a gross floor area of 35,600 sqm.
• Stockland to build data centre: Stockland has gained approval to build a five-storey data centre in Sydney. The $264M building will operate 24 hours a day.
• ARA gains approval for office tower: ARA has gained approval for an $800M office tower in Melbourne CBD. The tower will comprise 39,000 sqm of office space. The tower is targeting a Green Star 5 star rating and a NABERS 5.5 star rating. ARA purchased the 2.1 ha site in 2016 for $578M.
• Hines breaks ground on tallest timber tower: Hines has started construction on Melbourne’s tallest timber office tower. The $200M building will comprise 18,200 sqm net lettable area. The development is expected to be completed in Q3 2023 and is targeting a Green Star 5.5 star rating and NABERS 5 star rating.
• Brisbane Airport plans third terminal: Brisbane Airport has announced plans for a $1B third terminal to connect dual runways. The 250,000 sqm terminal will have an L shape that both domestic and international operations can utilise. Completion is planned for 2032.
• Affordable housing deal in Adelaide: A $45M deal has been struck to develop 600 affordable and social housing in Adelaide. The agreement will help fast track the delivery of the developments. $125M has already been provided through National Housing Infrastructure Facility to community housing providers in the area to increase supply of affordable housing.
• Former department store conversion: A former department store in Ohio, USA will be converted into an office building. The $10M project will provide 13,935 sqm of innovative office space.

Copyright ? Chris Farhi 2021. All rights reserved.