Skip to main content Skip to footer

The week in real estate development - 16 September 2021

NZ_AucklandCBD_StrategicAdvisory_The week in real estate development  16 September 2021

A weekly update of the biggest real estate development news from New Zealand and around the globe.

New Zealand real estate development news  

  • Auckland Council announce plans for Queen Street project: Auckland Council has announced its plans for the last three stages of the Wai Horotiu Queen Street project. The plans include widened footpaths and stopping private cars from travelling on Queen Street by introducing an Essential Vehicles Area (EVA). Essential vehicles will include buses, bikes, mopeds, motorcycles, emergency vehicles, and goods and services vehicles. Work will begin by the end of 2021 with completion in September 2022. 
  • Auckland Film Studios expansion: Expansion plans for Auckland Film Studios will begin once Auckland moves to Covid-19 alert level 3. The $35M expansion plans include two new sound stages. The project will be funded by $30M from the government and $5M from Auckland Unlimited. The expansion will support production demand in the long-term. 
  • Auckland Council proposes developer fee increase: Auckland Council is proposing changes to developers’ contributions to recover infrastructure costs in priority investment areas over the next 30 years. If adopted the changes will be phased in and begin in Drury. Under the proposal the cost of contributions in Drury will rise from less than $20K to $84.9K per dwelling.  
  • Kāinga Ora announces Passive House development: Kāinga Ora has announced a new public housing development in Mangere that will meet Passive House standards. The three-storey development will comprise 18 homes designed to decrease embodied carbon and the need for heating and cooling to create savings on energy bills and reduce carbon emissions. The development is the first to be funded by the Central Government and built to Passive House standards.  
  • Drury subdivision development accelerates completion date: The Hunua Views subdivision in Drury will be completed ahead of schedule due to the shortage of affordable housing in Auckland. The subdivision will have 800 homes of which 30% are priced under 75% of the median house price. The development was originally planned to be completed in 2026.  
  • CPB Contractors seeking compensation: CPB Contractors are seeking $75M in losses and damages caused by alleged errors in engineering designs on Wellington’s Transmission Gully motorway. CPB claim there are differences between AECOM's initial tender design for the project and the final detailed design causing CPB to incorrectly forecast costs. 
  • Woolworths NZ wins Environment Court consent for developmentAfter four years Woolworths NZ has won consent from the Environment Court for a mixed-use development in Christchurch. Plans for the $300M mixed-use development include housing, shops, a supermarket, cinemas, and sports and community facilities. Christchurch City Council and Spreydon Lodge (neighbour) opposed the plans in court. 

Global real estate development news  

  • Aventuur plans wave park: Aventuur has announced plans for a wave park in Perth. The $80M development will include a surfing lagoon with more than 25 different waves, a boutique 100-room surf hotel, a health and wellness centre, co-working offices, a beach club, and restaurants. Depending on approvals, Aventurr plans to begin construction in 2022 with completion in 2024. 
  • Joint venture lodges plan for hotel resort: Arthur Winston Investment and Kita Group have lodged plans for a hotel resort development in Darwin called The North One Hotel and Apartments. The plans for the 5.1 hectare site include 131 hotel rooms and 53 serviced apartments. Concerns have been raised as the development is located on a sacred site registered by the Aboriginal Areas Protection Authority. If approval is gained the development will be completed by 2025. 
  • Scentre Group gains tower approval: Scentre Group has gained approval for an increase in height for a proposed office tower at Westfield Parramatta. The tower will be 47-storeys, increasing by 22 storeys. The $670M development will have 105,000 sqm of commercial space. 
  • Edge Centres announces plans for off-grid data centre: Edge Centres has announced plans for an off-grid, solar powered data centre north of Melbourne. The data centre will be operational within two months due to use of kit form arrays. Edge Centres plans to have 20 sites across Victoria, New South Wales, Queensland, and Japan by the end of 2022.
  • Lendlease breaks ground on hospital project: Lendlease will soon break ground on a $800M hospital project in Sydney. The Liverpool Health and Academic Precinct will provide 900 beds, an expanded emergency department, and double the capacity within the Neonatal Intensive Care Unit. Construction will be completed in 2026. 
  • Bruce Gordon plans mixed-use development: Bruce Gordon is planning a $292M mixed-use block development in Wollongong. The plans include a 45m-high commercial building, 402 apartments across three towers of 120m, 57m, and 65m height, a new plaza, cinema, and live music venues.  
  • Mixed-use development approved for downtown Chicago: Chicago City Council has approved a mixed-use development proposal for downtown Chicago. The $350M development will include a 23-storey and a 36-storey building connected by a commercial and parking base. The buildings will have 777 rental units, 314 hotel rooms, and 3,901 sqm of commercial space. Completion is expected in 2024. 
  • Construction begins on dual branded hotel: Construction has begun on the dual-branded Moxy and AC Hotel in Los Angeles. The 37-storey mixed-use tower will have 380 rooms for the Moxy Hotel, 347 rooms for the AC Hotel, 6,038 sqm of meeting rooms, restaurants, and bars, and a 557 sqm pool deck. Construction is expected to be completed in late 2022. 
  • Virginia Tech breaks ground on Virginia Tech campus: Virginia Tech has started construction on its new tech campus. The 27,870 sqm facility will be located on a 1.4 hectare site. The building is expected to be completed in 2024. 
  • Hotel chain The Standard to open in Singapore: The Hotel chain The Standard is set to open a new hotel in Singapore. The hotel will include 143 rooms, an infinity pool, and a botanical courtyard. The hotel will be developed by Invictus Developments and will open in 2023. 

Contact property consultant Chris Farhi at Colliers Strategic Advisory to request an email notification for this weekly update.


Related Experts

Renee Lintott

Analyst

Auckland CBD

Renee was the recipient of the Blair Hargrave/Colliers  Scholarship in 2019 before joining the  Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing  her tertiary qualifications and joined full time in mid 2021. 

View expert