Property Insider: $33m Auckland block bought pre-election for now-scrapped light rail; how Mitre 10 reacted to owners being named; house-building update; Snells Beach scheme allowed

News of Auckland light rail being scrapped raises questions about the fate of a $33 million Kingsland building bought pre-election. Mitre 10′s reaction to the first owner list, the state of house-building for one national group business boss and a new Snells Beach scheme allowed by the Environment Court are covered today.

Optimism overrode reality when in September, Auckland Light Rail bought the prominent Kiwi Bacon Building for $33 million but on the weekend, National scuppered the $15 billion rail scheme - so what fate now for the deal on the building at 317 New North Rd, Kingsland?

Bruce Whillans of Whillans Realty Group said on September 7 that Jeremy Sim of his agency had struck an unconditional deal for the vendor to sell the building on a half-hectare site to ALR.

The building at 317 New North Rd, Kingsland. Photo / Whillans

Tommy Parker, ALR chief executive, said the rail business had made a tender offer which vendors accepted. The title then transferred.

Vendors were private investors the Kermani Group, which has extensive property holdings.

Before the election, then-transport spokesman but now Transport Minister Simeon Brown said of that Kingsland deal: “It’s a shocker.”

He was surprised at that sale but Parker said property would be required for purposes including the new stations and surrounding infrastructure, as well as during construction.

Now-Transport Minister Simeon Brown said the rail property purchase was a "shocker" coming so close to the election. Photo / Dean Purcell

“This purchase shouldn’t have been agreed to when the election is next month,” Brown fumed.

So what next for the project, backed by the Herald’s Simon Wilson?

Sim said yesterday his phone ran hot after he was the successful sales agent. Whillans said yesterday he’d be glad to take the building to the market once again.

“We had good interest in it last time. It’s a special property with plenty of upside.”

Simeon Brown said yesterday: “ It was irresponsible of Auckland Light Rail to purchase the Kiwi Bacon factory so close to the last general election. As part of the wind up of Auckland Light Rail, Cabinet will be receiving further advice about the future of the Kiwi Bacon factory. Announcements will be made following the decision.”

‘Confronting for our members’ - Mitre 10 CEO

They’re often the biggest business in town, have garden and timber centres at either end of their shops, employ hundreds of staff and are part of a national co-operative, yet the owners of Mitre 10 throughout New Zealand aren’t used to being in the spotlight unless it is for their charitable or community-based activities.

So what did those store owners think of being named in a Herald power list last November?

Mitre 10 doesn’t need to court the media or the limelight and is highly reticent to engage. When told of the list, spokeswoman Lisa Wilson said: “We’re unable to share information about our membership for a power list story, unfortunately, but thank you for the opportunity.”

All up, 9.4 million shares are on issue, with the biggest owner being the powerful Riviera Hardware Holdings, which owns many Mitre 10s, all located in fast-growing Auckland. In total, 67 companies have shares in Mitre 10 (New Zealand). To own and operate a store, you must become a shareholder and all the company names are published by the Companies Office under the extensive shareholder list.

All 67 companies - and the biggest owners - were named on November 24.

That same day, Mitre 10 chief executive Andrea Scown sent out an email to staff about that 4000-word feature.

It was somewhat of a mixed bag, she indicated, calling the feature “confronting for our members to see their names in national media, one of the key messages through the piece is that we are humble and don’t court media attention and helpfully several of the photos and captions highlight community activities”.

Mitre 10 chief executive Andrea Scown has her views over owners being named. Photo / Dean Purcell

Insiders said the email was somewhat of an endorsement of these owners’ power and they weren’t unhappy about the publicity. The chain gets little media coverage, yet it is New Zealand’s most popular, prominent home improvement and garden retailer.

They thought Scown’s reaction wasn’t unusual.

Asked about this, Mitre 10 said in a statement: “We would prefer that internal emails were not shared externally, but are interested in additional context you can share on why you feel it is important to do so.”

How’s house-building going?

One major franchise owner says the number of new houses built by his business almost halved last year.

But Christchurch remains a centre of activity, particularly due to the flat lands in its southern boundaries around Rolleston, Wigram and surrounding areas, he said.

Stable land, less affected by last decade’s earthquakes which hit areas like Shirley and New Brighton, is popular with buyers, the boss said.

New houses in Christchurch - a popular choice with buyers, a group house builder boss says. Photo / Peter Meecham

He’s hoping the new Government might help in an anticipated recovery of the economy this year, with more homes built, especially since more than 100,000 migrants arrived here in the latest year.

“Immigrants will put pressure on the existing market, which will increase the numbers of those looking for new homes. When the land developers get a little more realistic on pricing, we should be up and running again,” he said.

Snells Beach housing scheme allowed - with changes

Auckland Council’s refusal to grant consent for a Snells Beach housing development of 24 properties was overturned by Chief Environment Court Judge David Kirkpatrick last month after major amendments were made to plans.

Silver Hill originally planned 25 lots in 2021 but a year later applied to develop a 24-lot subdivision at 124 Mahurangi East Rd on the outskirts of the town, going to the council for consent, the December 19 decision said.

The company’s appeal against the council’s decision was only allowed subject to amendments.

The land (marked with the red dot) where the new housing scheme is planned, on the outskirts of Snells Beach. Photo / Google Maps

The council rejected the plans, Judge Kirkpatrick said, finding the scheme would have more than minor adverse effects on the spacious landscape character of the immediate area and adjacent properties including 11 and 18 Lett Rd. Street tree removal and earthworks were planned at the site.

So the development business cut the scheme back to 20 lots, provided setbacks at the boundary with various Lett Rd places and went to the Environment Court with the revised plans.

A griselinia hedge would be planted as well as seven pōhutukawa on the road reserve. Changes would be made to vehicle access and only dark-coloured roofing material would be applied. No minor dwellings or small places would be built beside one Lett Rd place and part of Lett Rd was to be sealed with kerbing, channels and a new footpath.

The council was ordered to grant Silver Hill’s application subject to many amendments and changes.

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.