Auckland developers chosen to bid for contentious central Queenstown land
/ Augusta News
Cental Queenstown's contentious Lakeview camp ground will be developed by a consortium led by Auckland-based Augusta Capital.
Stock Exchange-listed Augusta in partnership with Melbourne developer Ninety Four Feet, and Britomart Hospitality Group will negotiate a development agreement after being chosen as the favoured bidder.
Lakeview on Man St is the largest remaining development site in central Queenstown, and for more than a decade the Queenstown Lakes District Council has been criticised for failing to make it available for cheap housing in one of the country's most expensive residential markets.The site had been earmarked for a convention centre before that idea was shelved and has remained occupied by cabins inhabited by local workers.
The construction is estimated to take more than 10 years.
Previous reports have put the benefit to the council from such a deal at about $25m.
Augusta will invest a 25 per cent stake, and Ninety Four Feet the balance.
The development will be managed on a daily basis by Ninety Four Feet, and Australian privately-held property development, investment and construction group.
The 30-year old Ninety Four Feet first entered the New Zealand market in 2016 with the acquisition of 51-53 Albert St in Auckland where it is building a 41-storey, 225 room Intercontinental-branded Indigo Hotel and 23 luxury apartments.
Britomart Hospitality Group has more than 20 hospitality businesses throughout Auckland, Wellington, Christchurch and Hamilton and is best known for its Britomart precinct near the Auckland waterfront. It will be responsible for the retail spaces at Lakeview.
Augusta will have the first option to acquire parts of the development which it will sell into its soon-to-be established residential and tourism investment funds.
"Lakeview is a once in a lifetime opportunity in Queenstown which we are excited to be a part of,", Augusta managing director Mark Francis said.
"transaction continues our recent move into sourcing product as investment grade properties become harder to acquire, providing a strong pipeline of stock for our planned tourism and residential funds.
"As a development partner though, we believe the investment stacks up on its own accord outside of the product that it will provide.
Augusta recently bought a property at 17-19 Man St, Queenstown for a hotel development that will also go into the Augusta Tourism Fund when it is established later this year", he said.
At a recent Queenstown Lakes District Council meeting, mayor Jim Boult said there had been 22 expressions of interest, shortlisted to four developers.