What’s the latest for Stonewood Key after its 2022 high-profile launch? It’s been some time since we’ve heard much. Now a boss gives an update. Out at Manukau, the Du Val-managed, 14-level Lakewood Plaza is beset by problems. All in today’s Property Insider.
Lower house sale volumes combined with higher interest rates have spelt tougher times for the property development joint venture between former New Zealand Prime Minister Sir John Key, his son Max and brothers Michael and John Chow.
John Chow, a Stonewood director, said a quieter market meant Stonewood Key was finishing projects rather than starting new ones.
“With regards to Stonewood Key, due to the quiet residential market and high interest rate, our current focus is on finishing our existing projects, including a project at South Mt Roskill, as opposed to looking for new ones. Not much exciting happening as the property market is still a bit slow.”
In early 2022, the Herald reported how Stonewood Key Capital sought $100 million within 18 months for a venture to build 500 houses a year.
“Partnering with Max and Sir John Key adds a new dimension to Stonewood Group and is an exciting new chapter in our businesses’ development,” John Chow said on February 15, 2022.
Chow, a migrant born in Hong Kong, was referring to the already-established national house builder, Stonewood Homes.
By August that year, the Herald reported how $50m had been raised.
Stonewood Key Capital sought money from qualifying or wholesale investors in schemes that Te Mana Tātai Hokohoko the Financial Markets Authority warned people should take professional advice on before entering.
Since last year, Stonewood Key’s website has been unavailable. Vicki Chow last year told the NBR that a new website was being designed and the original website would be down “for a few more weeks”.
Asked for an update this month on Stonewood Key, John Chow responded via a spokeswoman indicating the market for new homes had been slow.
“With regards to how many homes Stonewood Homes has built, national media has already reported on this in the past few days and the information is publicly available.”
Recent data from property researcher Pacifecon rated Stonewood Group eighth out of the 15 largest New Zealand house builders, based on dwelling numbers.
Separate data from BCI New Zealand for the year to July 2024 shows Stonewood Homes built 50 homes valued at $23 million. It was ranked 32nd for number of new dwellings completed in the year.
Chow told the Herald a central Auckland CBD apartment tower was Stonewood’s biggest project.
“Stonewood Group currently has a significant focus on the 280 Queen Street hotel development. Work has only just started and we are still working through consenting matters,” he said.
The main contractor for the building, which runs back to 33 Lorne St, is yet to be announced.
Chow has also branched out into the solar power sector lately.
“Exciting milestone for our first solar farm in Ashburton,” he wrote of a joint venture with Lightyears Solar last week.
“In just two months, the farm will be generating 7.2MW of clean, renewable energy, enough to power around 1500 homes during the day. What’s more, small animals will be sharing these solar paddocks, making it an even greener initiative,” Chow wrote.
Max Key was unavailable to comment. He said he was overseas, but is back this week.
A flood from a burst water main, leaky windows, statutory management of the apartment manager, ongoing power outages — some apartment building owners get all the bad luck.
Owners of Manukau’s 14-level Lakewood Plaza apartment tower, managed by Du Val, plan litigation after a burst water main flooded units in 2021, costing them millions of dollars to fix.
The July update from body corporate chairman and owners’ representative Josh Mainwaring told of progress.
“I’m continuing to invest considerable time in discussions with our legal team to address important matters and strategise effectively. We are carefully positioning ourselves for the next phase of our plan, which involves potential litigation against parties believed to be at fault,” he wrote.
But he also told of window joinery leaks in 16 apartments during severe weather events.
Consultant Maynard Marks did a facade performance review.
“The initial phase of this investigation involved specialist contractors abseiling various sections of the building facade to gather necessary insights. We have now received the preliminary report from this assessment. The report highlights several issues ranging from obvious to less apparent, all of which necessitate further specialist investigation to fully understand the extent of work required to rectify the reported ingress problems,” he told owners.
People with units in the block were asked to pay a special levy last month as their contribution to fixing the tower after the 2021 burst water main.
Du Val’s charges were also questioned.
“We are aware of the concerns raised by some owners regarding Du Val Property Management’s management fees on vacant apartments during the flood restoration period. We have discussed these concerns with DPM, but they have advised that this matter is outside the scope of the body corporate’s responsibilities,” Mainwaring wrote.
Last weekend, owners complained to the Herald about the lack of power in some parts of Lakewood Plaza.
One resident wrote: “The first power cut was at 8.20pm on Sunday. Power was restored at 10.35pm. As of 5.10am on Monday, the power was out again. One person was stuck in the basement unable to get out last night until security opened the stairway.”
Lakewood Plaza’s building managers emailed people saying a specialised team from Vector was scheduled to investigate the root cause of these recurring power issues and people would be kept updated.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
'Some people can’t remember anyone in their family owning a home.'