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The week in real estate development - 19 May 2021

The week in real estate development  19 May 2021

A 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 checked out Queen Street: The vlog checked out the latest real estate action on Queen Street in central Auckland. Topics included Krukziener Properties' redevelopment of 131 Queen Street for WeWork, redevelopment of 246 Queen's retail space, and Conrad Properties' development of the Queens Park Residences at 369 Queen Street.
  • Construction more expensive in New Zealand than Australia: The Arcadis 2021 International Construction Costs report puts both Auckland and Christchurch in the top 20 most expensive cities in the world to build. Sydney is the most expensive in Australia at 29th overall.
  • Consented industrial construction growth year-on-year: The total value of consented building work for storage buildings such as warehouses passed $1B in the year to March 2021. This is up more than 25% on the prior year. 
  • Plans for $300M of solar energy farms: Loadstone Energy has secured five sites in Northland for the construction of five new solar energy farms. The farms are capable of producing 1% of the country’s energy supply. The farms will cover 500 hectares. The first farm in Kaitaia is scheduled to be operational by the end of 2023.
  • Precinct fully leases 44 Bowen Street: Precinct Properties announced that 44 Bowen Street, Wellington is now fully pre-committed after Waka Kotahi (NZTA) agreed to lease 6 floors for 12 years. They are joining KPMG who previously committed to leasing space in the building. Practical completion is expected in the first half of 2023.
  • Argosy updates market on 8-14 Willis Street and 360 Lambton Quay: Argosy's latest market update noted 8-14 Willis Street / 360 Lambton Quay is progressing towards completion in February 2022. An extra level has been added to the scheme.
  • Taranaki Whānui gains a greater stake in Shelly Bay development: Taranaki Whānui and The Wellington Company have agreed that the iwi will own all commercial assets and have a distinctive cultural presence within the $500M Shelly Bay development. Within the agreement, iwi members will also have the first right of refusal over 43 affordable houses within the development.
  • Ngāi Tahu Property to deliver its third major industrial development: Ngāi Tahu Property’s latest industrial development, Mānia in Hornby, is now being marketed. They are offering both land sales and design-build-lease options. The land sales will be offered without nominated construction partners.
  • Investore property to develop a new Countdown: Investore Property has agreed to develop a new Countdown in Kaiapoi. The total cost of the development is estimated at $31M. 

Global real estate development news

  • Australian Holden site to be converted into technology hub: The Victorian Government is investing $179M to convert the former Holden site into the Fishermans Bend Innovation Precinct. Stage one focuses on remediating the 32-hectare site with completion in 2024. The precinct will accommodate the University of Melbourne’s School of Engineering from 2024 and have the capacity to support up to 30,000 STEM jobs by 2051.
  • Australian Unity secures funding for disability accommodation: Australian Unity has entered into a $40M agreement with GreenFort Capital to develop 55 specialist disability accommodation dwellings across Queensland. The fund will address the lack of rental accommodation suitable for people with disabilities.
  • Greystar Build-To-Rent tower is the world's tallest modular skyscraper: Ten Degrees, a new build-to-rent development across two adjoining 38 and 44-storey towers, is now the worlds tallest skyscraper to be built with modular construction methods. The towers in Croydon, London used ready-built pods stacked on top of each other for on-site construction.
  • London Oxford Airport to develop new hangar: London Oxford Airport has started construction on a new hangar development. The development includes a 6,000 sqm, 140m long hangar with two bays comprising storage, offices and workshops. The new hangar will be the airport's 15th.
  • Drum Property Group starts construction of a hotel in Glasgow: Drum Property has begun on-site works for a new hotel in their $300M Candleriggs Square development in Glasgow. The 500-bedroom hotel will be owned and operated by The Student Hotel. It will offer hotel accommodation, co-living and co-working spaces.
  • Cherpa Place development announced: Plans for a new $160M multi-use development have been announced in Sioux Falls, USA. The development will include three buildings at Cherpa Place comprising 16,722 sqm of office and retail space, 150 apartments, 12 condos and 1,000 car parks. Construction is expected to be completed in 2023.
  • JBG Smith gains final approval for residential development: JBG Smith has gained final approval to develop residential buildings in Arlington, USA. The two buildings will total 758 units plus 2,043 sqm of ground-floor retail space. The buildings will be enhanced with large co-working spaces, 24-hour concierges and dog-grooming spaces.

 


Related Experts

Renee Lintott

Strategic Analyst

Auckland

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. 

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