When the scheme was proposed three years ago - Nik Nigro, spokesperson for a group of concerned residents, over Kohimarama plans. Local residents in background from left: Catherine Barkworth, Margaret McGavin, Leith Hamilton, Lori Nielson, Billy Harris, Michael Davidson, Teresa Bodzassy, Wawang Prins, Andrew Prins and Roy Cohen8 October 2020 New Zealand Herald photograph by Brett Phibbs
When the scheme was proposed three years ago - Nik Nigro, spokesperson for a group of concerned residents, over Kohimarama plans. Local residents in background from left: Catherine Barkworth, Margaret McGavin, Leith Hamilton, Lori Nielson, Billy Harris, Michael Davidson, Teresa Bodzassy, Wawang Prins, Andrew Prins and Roy Cohen8 October 2020 New Zealand Herald photograph by Brett Phibbs
Kohimarama residents have won a battle against Ryman Healthcare by default after the company announced last month it was abandoning $150 million plans for a vertical village in their suburb.
Three years ago, a group of residents rose up against plans for a high-rise villagein their neighbourhood.
A Herald video filmed at the time near the site showed residents including Nik Nigro saying the scheme was inappropriate for the area, fearing size in the predominantly single-level to two-level residential area near two schools.
“It’s appalling,” Kohimarama resident Jeff Robertson said when consent was granted.
“This is a warning to all Aucklanders,” said Andrew Prins, whose home backed onto Ryman’s vacant lots.
Ryman had been upbeat about it all, saying in May 2019 that there was a “significant retired population in the wider eastern suburbs”. Acting chief development officer Jeremy Moore noted the proximity to Eastridge shopping centre.
In 2021 the company won consent via the Covid-19 Recovery (Fast-track Consenting) Act 2020 which the previous Government passed to try to speed up work when the pandemic hit.
The site is in two titles: Ryman bought a lease from a third party with a 137-year term but perpetual rights of renewal on one block and owned the other site outright.
United against Ryman back in 2021: Nik Nigro (front right) with Kohimarama residents from left: Catherine Barkworth, Margaret McGavin, Leith Hamilton, Lori Nielson, Billy Harris, Michael Davidson, Teresa Bodzassy, Wawang Prins, Andrew Prins and Roy Cohen. Photo / Brett Phibbs
“Stunning site to provide homes for more than 300 retirees” is how the company announced its purchases.
But this decade, interest rates rose, house prices fell. Ryman raised $902m in a rights issue earlier this year to repay elevated debt but still has debt above $2b in a high-interest rate environment.
So last month, on November 29, Ryman chief executive Richard Umbers took the opposite approach to that taken under previous leadership, signalling a Kohimarama escape plan.
Umbers told the Herald that the east Auckland site was one of five the multibillion-dollar business was either deferring work on or selling.
The site wasn’t ideal from many different vantage points, not just debt and the huge cost of building the village, he said.
“That was quite an expensive site for us to develop because it’s in a gully. It’s also quite a tight site so in terms of the return, it makes no sense for us to progress that site. It doesn’t meet our hurdles any more,” Umbers said after the company’s half-year result was released.
Ryman Healthcare's $150 million plans for Kohimarama.
Instead of the huge scheme for undeveloped land accessed off Kohimarama Rd and John Rymer Pl, the healthcare giant will abandon its scheme and quit the land.
Jeff Robertson, Kohimarama Neighbours Inc chairman, said last week the site would be hard to develop.
“It confirms what we knew to be true: it is a very difficult site to develop, with a steep south-facing aspect and constrained access. It is frustrating that our community including impacted neighbours had to put their own time and money, plus or minus $40,000 into battling this.”
“We are now concerned that another developer will buy the site and we will have to go through another protracted battle. Construction fences and blue scrim netting should be removed. These have been an eyesore for years,” Robertson said.
Ex-Ryman chief executive 'Gordy' MacLeod was running the company when the Kohimarama site was bought. Residents spent around $40,000 trying to stop development. Photo / Nick Reed
Documents Ryman lodged with the Environmental Protection Agency to win fast-track consent show its Healthcare Shelf Company No. 30 leases most of the 3.1ha site, yet to be advertised for sale.
Ryman planned the village at 223 Kohimarama Rd and 7 John Rymer Pl. The 3ha site at 223 Kohimarama Rd is worth around $49.8m alone, market estimates show.
A 173-bed hospital with specialist dementia care and 123 independent apartments were planned at the site.
The Kohimarama block where Ryman could have built. Photo / Brett Phibbs
Ryman’s other four sites where Umbers said plans were paused or axed are:
Melbourne’s Ringwood East where some work was done but no village was built: “It’s a reasonably dense development and we have other opportunities. We’ve only basement work there which is below-ground construction. We haven’t commenced construction,” Umbers said last month
Expansion of the existing Murray Halberg village in Auckland’s Lynfield is paused: “It’s a very successful village. We build in a series of stages. We’re pausing stages five, six and seven which were to be mainly apartments,” Umbers said.
Land planned for a new village at Newtown, Wellington, to be sold: “It’s a very capital-intensive site,” Umbers said.
Takapuna’s ex-fire station site beside Lake Pupuke where a new village and 60-bed hospital were planned: “At the moment, we’ve done ground works at the site. It’s ready to build when we’re ready.”
Ryman shareholders are getting no dividends. Shares are trading on the NZX around $5.36, down 14 per cent annually.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
