Three Kings plan court action over Fletcher quarry plan

One of New Zealand's largest land developers and builders has released new details of a huge push into Auckland housing, at the same time as Three Kings residents vow to take legal action against the business.

Fletcher Residential has this morning issued a detailed 40-page investor update which is posted on the NZX, telling how it plans to build about 500 Auckland houses annually, a city where "there is a structural shortage of housing. On current estimates, this will take 10 to 30 years to reverse."

The company is owned by one of the largest listed New Zealand businesses, Fletcher Building, which has a market capitalisation of $5.02 billion, behind Spark's $6.2 billion.
But Tuesday night's meeting in the Three Kings area took on a militant tone against Fletcher's plans to build an entirely new urban community in the deep chasm of the Winstone quarry, suspending apartment blocks off the side of the pit.

Cathy Casey, an Auckland councillor, was at the Three Kings rally and described the mood of people in the area who oppose the plans.

"Around 300 people packed the Three Kings School Hall to plan the community fightback against the Fletcher development plans for the Three Kings quarry. The meeting voted unanimously in support of legal action to ensure a better development. Ten storey apartment blocks built down a hole is just not good enough. Landscape architect Richard Reid has proved that we can do a whole lot better," she said.

Garry Bryant, Three Kings United president, said the next steps were still being planned.
"There's a possibility of an Environment Court challenge to the plan change," he said, also expressing concern about the Fletcher Residential update out today.

"Why does Three Kings, which is the smallest in land size [than plans for three other sites] have the most residential density which is 50 per cent more than Whenuapai which has a land size of 31ha? The very area that needs the most open space has next to nothing compared to the other three sites where land is abundant," Bryant said.

But Fletcher remains upbeat about the 21.6ha Three Kings site where it wants to build 1500 dwellings for up to 3000 people during a decade.

Three Kings is listed under key projects the largest of these is the 47ha Manukau Golf Course where 433 residences are consented but Fletcher noted it has the "potential to intensify".

Other projects include the 22ha Peninsula Golf Course where stage one will bring 85 new residences and stage two 164. Fletcher paid $24 million for the raw land which is half of the entire course. It has a tight three-year time frame on this work.

At Whenuapai, a 31ha site is ear-marked for 650 residences and Fletcher said it paid $161 million for 650 finished lots. An eight-year time frame is envisaged.

"Fletcher Building re-entered land development with the purchase of the Manukau Golf Course in 2013. Land developments are typically eight to 10 year build outs over multiple stages. Acting as the developer of raw land allows Fletcher Building to capture both development and build margins, master plan communities to provide a balance of uses and greater flexibility over the development approach/timing.

"At this stage we are limiting our outright non-partnership acquisition of raw land to Auckland. First earnings from land development likely in FY17 with 28 dwellings at Peninsula Golf Course. Steady stage approximately 500 homes/annum," Fletcher said in the update.

Read the report here: