Mystery over dispute involving 728-unit Avondale project

The Ockham-Marutūahu Partnership wants to build this giant apartment complex at Avondale Central, but is now in a dispute with Eke Panuku. Image / Auckland Council

A business leader and developer are frustrated with Auckland Council’s property arm over Avondale, where one said buildings were demolished more than two decades ago, yet no scheme has risen yet to revitalise it.

But the council’s Eke Panuku has defended itself, saying it picked the developer three years ago, but it had not even been paid for its land.

Avondale Business Association chairman Marcus Amosa said it had been nearly 28 years since buildings in Avondale’s heart came down, and he wants action.

Those buildings included the 3 Guys supermarket, “leaving a gaping hole that had been used as a dumping ground and graffiti park since. Over the years the council has promised a retail development to reconnect our town centre but the last time this was promised the developer walked away citing frustrations with the council over mandatory car parks”, he said.

Avondale Business Association chairman Marcus Amosa (left) and community activist Jason Valentine-Burt. Photo / Sylvie Whinray

Mark Todd, of the Marutūāhu-Ockham Group, said that business had won the right to buy 1.58ha to help build 728 units to help revitalise the centre after Eke Panuku called for expressions of interest three years ago, but a legal dispute has arisen.

Neither party would say what the dispute is about, but the Herald understands height and shading and effect on surrounding sites are issues, with Todd wanting more than Eke Panuku.

Todd said he wanted to develop “something that will look like it’s out of Melbourne” and referred to Ockham’s success developing apartment block Aroha, also in Avondale.

Plans for more than 700 apartments at Avondale Central are planned by the Marutūāhu-Ockham Group , but some have questioned height and shading effects on other properties. Image / Auckland Council

In feedback on the application, Whau Local Board chairwoman Kay Thomas questioned the Marutūāhu-Ockham Group scheme for 728 units in eight blocks planned for 6-10 Racecourse Pde.

“Whau Local Board requests limited notification because of the scale and size of the development. Buildings on three of the boundaries infringe height and setback requirements, with four of the eight buildings, 6A, 6B and 10A, 10B infringing the Auckland Unitary Operative Plan maximum permitted height.

“The outlook standard is breached in multiple proposed apartments resulting in a potential reduction in amenity for residents,” Thomas wrote on February 23.

Shading, wastewater, stormwater and accessibility were other issues Thomas cited in her February 15 memo.

Map showing the land involved in the deal Photo / Supplied

Todd said Eke Panuku had engaged Chapman Tripp, and his group was yet to settle its purchase or start work.

He forwarded questions.

“What has this dispute cost Eke Panuku and Auckland ratepayers to date? What is the projected total cost upon resolution? It is our estimation that the current market value of the Avondale Central site is $5 million to $7m below the agreed price payable under the terms of the development agreement,” Todd said.

A spokeswoman for Eke Panuku said the Marutūāhu-Ockham Group had been selected as the preferred development partner over two others in late 2021.

A development agreement had been signed by both parties in June 2022.

Dale the Avondale Spider is a prominent landmark in the suburb. Photo / Dean Purcell

“We thought very carefully about the essential outcomes and master plan requirement for the development site, and we still believe them to be current and valid. These were clearly identified in the go-to-market process and known to the Marutūahu-Ockham Group throughout the process and again formed part of the agreement which it signed in June 2022,” she said.

Eke Panuku was continuing to engage with the group to work through issues using the dispute provisions in the agreement. Of the many agreements it had entered into over the years, this was the first one that had needed to use the dispute provisions, she said.

On June 30, 2022, Eke Panuku announced the Marutūahu-Ockham Partnership planned a $550m scheme for 750 apartments in eight blocks of up to 10 storeys.

The spokeswoman said today in response to Todd’s criticism and questions that Eke Panuku had run a contestable process to find a development partner for the key site at 6-10 Racecourse Parade known as Avondale Central.

Eke Panuku chairman Paul Majurey. Photo / Dean Purcell

All parties who participated in this process did so on the full understanding of the requirement to meet known required outcomes for this development site, she said.

Separately, the Herald has reported how the Marutūāhu-Ockham Partnership agreed to develop a multibillion-dollar village at Ōwairaka Mt Albert.

In October 2022, Paul Majurey, Marutūāhu chairman, announced that scheme for the newly created and newly named suburb Maungārongo beside Unitec and the old Carrington Hospital.

The partnership plans work in the next 20 years within the larger Te Auaunga Precinct: nearly 40ha around the ex-hospital and neighbouring university being developed by three rōpū — Marutūāhu, Waiohua-Tāmaki and Ngāti Whātua Ōrakei.

Majurey said the almost-11ha share of Marutūāhu land would bring new mixed-use buildings to the established area.

Majurey is Eke Panuku’s chairman and also heads the Ockham-Marutūāhu Partnership.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.