Developer looking to Chinese investors

Tough times have slowed progress at Hopper projects, including Pauanui Waterways on the Coromandel Peninsula. Photo / Supplied

One of New Zealand's leading coastal developers, Hopper Developments, is turning to Chinese investors to keep its business viable.

Managing director Leigh Hopper says his company is reinventing itself to try to build a strategy for survival and prosperity.

Tough economic times have dramatically slowed sales and development at Hopper developments in Whitianga and Pauanui on the Coromandel Peninsula and Marsden Cove in Northland.

"We need foreign capital to flow into accommodation, activities and support infrastructure," Hopper said.

The company is targeting China and is working with the Government to introduce new visa arrangements to facilitate investment, which will not only benefit areas like the Coromandel Peninsula and Northland but New Zealand as a whole, he said.

China is being targeted because of the interest there in investing in overseas property.

"It's the fastest growing economy in the world and it's highly productive. Millionaires are popping up every day," he said.

And as land can only be leased in China, people with money are keen to invest in Western freehold property. It's a way of spreading their risk and they don't necessarily expect to make a return, he said.

Chinese investors will be invited to buy property and build, with the aim of attracting them to visit regularly and rent out their houses when they're absent. Options for investment in commercial property, tourism activities and infrastructure are also being explored.

The company wants the Government to introduce a renewable, two-year, multi-entry visa for investors who would be sponsored by Hoppers.

"We need flexible visa arrangements so they can come and visit, other than through the [existing] short-term visa."

At the same time, the company is getting involved in tourism promotion to ensure people visit the areas where their developments are located and thus make investment worthwhile.

The Coromandel Peninsula is under-performing in tourism and China is an untapped market, Hopper said.

Hoppers is working with an Auckland company to run short-stay packages on the peninsula, incorporating the Auckland-Coromandel ferry service. This will be aimed at Chinese residents in New Zealand. A large Australian promoter is also interested in joint ventures.

As well, Hoppers has set up a new company to offer fully-serviced holiday accommodation to overseas tourists.

- NZPA