Kensington buyer sees opportunities

John Sax, seen at the Kensington Park development, says housing demand will grow. Photo / Dean Purcell

John Sax, the developer who has bought the giant Kensington Park housing project north of Auckland, says now is the best time to buy real estate.

The downturn is offering excellent opportunities, including the failed $500 million project at Orewa, he said.

"It's a very acquisitive year for us. It sounds a bit mercenary but this market gives us very good opportunities," said the Southpark Corporation executive director.

Sax is an industrial developer who has specialised in the Mt Wellington, Penrose and Onehunga areas. He runs more than 20 companies and is said to be Auckland's largest industrial landowner with properties in Newmarket and Manukau.

Southpark's website says astute people are planning for the next boom time.

"Now is the ideal time to do so. The utilisation of this slower time to prepare for the next boom is not rocket science but does take some wisdom," the company says.

Sax lives with his wife Alma in Epsom's Florence Court and he created Rotorua's award-winning Treetops Lodge and Estate, a grand country house which draws international tourists.

He also founded For the Sake of Our Children Trust with Christine Rankin to try to change social policy in this country.

Sax has specialised in developing brownfields sites such as Southdown and Pikes Point.

Asked about his biggest industrial property deal lately, he cited the new $16 million 12,000sq m building for paper and packaging giant BJ Ball.

His business will retain ownership of that block on Hugo Johnson Drive at Penrose and lease it for a decade. Southpark is in the market for tenants, competing against rivals such as Goodman Property Trust.

Southpark is beginning a new 28,000sq m industrial property for Seamount at Onehunga's Pikes Point. The company says it has developed more than 150 properties, mainly for international businesses.

Sax told of his plans for the Orewa site where only 50 of the planned 750 houses have so far been built.

"It looks like a bombsite with a lot of unfinished work. Residential is not really our thing so this is a diversion."

Asked how he would succeed where developer Patrick Fontein failed, Sax said demand for new housing could eventually outstrip supply.

"It's a very uncertain and difficult time and one has to take a medium to long term view. There's been a huge fall in residential building activity with the numbers halving. But we still have to have activity in the sector and there's still the trade-up factor. We don't expect any massive progress, just good steady progress. We need to make sure we're not too ahead of the market with good, conservative prudent development," he said.

Sax will complete walkways, reserves, a lake, landscaping, shops and the residents' pool complex and plans to finish the three existing blocks of apartments where work stopped last year. But he plans to abandon Fontein's grand vision and build far fewer houses, referring to "mothballing" parts of the plans.

Penny Webster, Rodney District Council mayor, said she was pleased an Aucklander had bought the project. She was also pleased the development stayed under single ownership.

Kensington Park, modelled on the town of Seaside, Florida, which was used in the movie the Truman Show, is on Orewa land that used to be the Puriri Park camping ground.