Four developers in bidding for Barrowcliff

Aug 16, 2017 | News


Photo: RNZ / Claire Eastham-Farrelly

The New Zealand Housing Foundation, the country’s biggest community housing developer, had been about to start on the $140 million project in Wiri, when it complained the asking price for the council-owned land was too high.

The foundation was proposing to build 290 homes at the 5.1ha site in Barrowcliffe Place, including a mix of rental, market, and assisted first-home-buyer dwellings, for a consortium it led.

Neither the foundation nor the council’s development agency, Panuku, will comment on progress, after the pair spent eight months in negotiation.

Auckland mayor Phil Goff said Panuku was now also talking to three iwi groups who were potential buyers.

“I think the four potential buyers came about because the conglomerate of buyers at the beginning decided they each wanted to put separate bids in,” said Mr Goff.

The mayor was guarded on whether the sales process to date had gone well.

“I think that both Panuku and the housing provider will look back on their experience in this regard, and say there are better ways of doing this.”

“Both Panuku and the housing provider will look back … and say there are better ways of doing this” – Phil Goff duration 3′ :55″

There appeared to have been considerable tension, after suggestions that Panuku had significantly raised the asking price.

Auckland mayor Phil Goff Photo: RNZ / Claire Eastham-Farrelly

Panuku Development Auckland is a council-owned company, operating at arm’s length from politicians selling surplus council land and undertaking urban regeneration projects.

Ironically, at the same time that the initial deal was stalling, both Panuku and the Housing Foundation were taking part in the Mayoral Taskforce on Housing.

Mr Goff said he was confident the sale process was now going well, and with the agency set up at arm’s length from politicians, it would be wrong for councillors to get involved in questions of price.

“What we are saying to Panuku is, here are the strategic objectives, but it’s not right that council-elected representatives will get down into the detail of those negotiations,” said Mr Goff.

The Housing Foundation told RNZ in June that the asking price for the site had swung in a range between an earlier valuation of $8m and a new market price valuation of $24m, for land inherited from the former Manukau City Council.

Panuku had begun talks in September last year with the Housing Foundation, and the pair subsequently signed an initial agreement about their roles leading up to a sale.

‘We don’t balance the budget simply by selling off the family silver’

When asked about progress since the June rift, Panuku referred RNZ to councillor Chris Darby, who chairs the planning committee to which the agency reports.

Mr Darby said the agency would settle on a price that did allow the affordable housing the council wanted.

“There is a discount involved to achieve that strategic outcome of affordability, the great design etc, but ultimately a fair value will be arrived at. Our ratepayers also expect that to be important as well,” Mr Darby said.

Manukau ward councillor Daniel Newman, in whose patch the development lies, has also been in discussion with Panuku about Barrowcliffe Place since the public comments.

Mr Newman said the political message to Panuku had not been clear, with the council too focused on how much it could gain from Panuku selling land.

“We don’t balance the budget simply by selling off the family silver. There are other tools available and also the opportunity to cut our cloth if we can’t achieve the revenue targets that we require,” he said.

Panuku revealed its plans to rejuvenate central Manukau, including Barrowcliffe Place in December 2015. It’s not clear when a deal over the residential land will be finalised.

Recent articles

Community Housing Aotearoa newsletter 27 June 2022

Community Housing Aotearoa newsletter 27 June 2022

Our CEO Vic Crockford reflects on our past, while looking forward, Dwell Housing Trust's board is recognised for their sterling efforts, new research highlights NZ's ongoing housing challenges. Upcoming events include; the Community Housing Aotearoa MSD Training...

Community Housing Aotearoa (CHA) Newsletter 13 June 2022

Community Housing Aotearoa (CHA) Newsletter 13 June 2022

Kaupapakāinga: The potential for Māori cohousing, The Shift Directives - Leilani Farha, IN THE NEWS, EVENTS, National Volunteer Week, Te Wiki Tūao ā-Motu, Community Housing Aotearoa (CHA) | MSD Training Series - Session 3: Emergency Housing, Community Housing Aotearoa...

Community Housing Aotearoa (CHA) Newsletter 30 May 2022

Community Housing Aotearoa (CHA) Newsletter 30 May 2022

Community Housing Aotearoa (CHA) Newsletter 30 May 2022, 2022 Minister of Health Volunteer Awards now open for nominations, Community Finance takes out Innovation in Finance award, Budget 2022 panel discussion, Two new Pacific roles at CHA, NRHCC - winter wellness and...

Annual Report

CHA’s 2020/21 Annual Report

CHA’s 2020/21 Annual Report

Strategic Plan

CHA’s 2022-2023 Strategic Workplan

CHA’s 2022-2023 Strategic Workplan

Featured Network

Residential Tenancies Act Community of Practice

Residential Tenancies Act Community of Practice

Our Place

Our Place Report 2017

Our Place Report 2017

Case Studies

Media Releases

News

Anti-Social Behaviour notes Nov 21

Tenants Protection Association (Chch) Inc. Notes for presentation at Tenancy Management Community of Practice Nov 2021 Anti-Social Behaviour notes Nov 21

Tenancy Management COP November 2021 summary

tenancy-management-cop-november-2021-summary The final Tenancy Management Community of Practice for 2021 was held via zoom on 11th November 2021. This Community of Practice is relevant for advocates, practitioners, navigators and tenancy managers involved in...

Newsletters

Community Housing Aotearoa newsletter 27 June 2022

Our CEO Vic Crockford reflects on our past, while looking forward, Dwell Housing Trust's board is recognised for their sterling efforts, new research highlights NZ's ongoing housing challenges. Upcoming events include; the Community Housing Aotearoa MSD Training...

Community Housing Aotearoa (CHA) Newsletter 13 June 2022

Kaupapakāinga: The potential for Māori cohousing, The Shift Directives - Leilani Farha, IN THE NEWS, EVENTS, National Volunteer Week, Te Wiki Tūao ā-Motu, Community Housing Aotearoa (CHA) | MSD Training Series - Session 3: Emergency Housing, Community Housing Aotearoa...

Community Housing Aotearoa (CHA) Newsletter 30 May 2022

Community Housing Aotearoa (CHA) Newsletter 30 May 2022, 2022 Minister of Health Volunteer Awards now open for nominations, Community Finance takes out Innovation in Finance award, Budget 2022 panel discussion, Two new Pacific roles at CHA, NRHCC - winter wellness and...

Community Housing Aotearoa (CHA) Newsletter 17 May 2022

Māori, Pacific needs left out of one size fits all approach to high-density developments, HUD and CHA Online Engagement on draft Public Housing Design Guidelines, In the News, RESOURCES, 2022 updates to healthy homes standards regulations take effect today,...

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Human Rights Commission releases troubling indicators on habitability, COVID-19 RESPONSE, First funds released from council housing reserve, Seven-point plan released to tackle cost of living, Community Finance nominated for top industry award, In the News, Events,...

Submissions

Legislation

Reports

Research

Community Housing Aotearoa

Contact Us

Contact Info

Level 11, Ranchhod Tower,
39 The Terrace /
102-112 Lambton Quay
PO Box 11543
Wellington 6142

+04 385 8722

support@communityhousing.org.nz

Follow On