Work has ceased on the site of Seascape, the 183m tall skyscraper on Auckland's Customs St East. Photo / Jason Oxenham
Seascape’s state, a $250 million contract and a high-priced house sale by Kurt Gibbons, all in this week’s Property Insider.
Work stopped last August on the $300 million-plus Seascape apartment tower, but do authorities have any powers to get it resumed and the building finished?
Ian McCormick, Auckland Council’s building consents general manager, said the Building Act only permits councils to step in where a building has deteriorated so much that it is considered dangerous.
“Maintenance of the Seascape building is reviewed regularly and so it is highly unlikely that it will meet this criteria in the near future.
“Outside of this, there are very limited powers under the Building Act that require a building’s owner to carry out work,” McCormick said.
Last year, the Herald reported how Seascape’s builder China Construction won a ruling that developer Shundi Customs must pay it more than $30m.
McCormick expressed hope work would resume soon.
“It is unlikely that provisions under other laws, such as the Resource Management Act, would efficiently resolve the situation.
“Our hope remains that this civil dispute is resolved as quickly as possible, so works can restart. However, we are continuing to explore all options available to us.”
On April 9, China Construction New Zealand filed March 31, 2023 accounts with the Companies Office in this country.
Notes recorded that last August 2, the Building Disputes Tribunal ruled Shundi Customs “is liable to pay China Construction New Zealand a total of $36,191,804.47. Despite the tribunal’s decision, the payment has not yet been settled and legal proceedings remain ongoing”.
As at March 26, Shundi had to pay the money in five working days, notes said.
Meanwhile, people in the sector have called the abandoned tower an eyesore and are worried about its future.
How do you win a $250m construction contract with one of New Zealand’s largest businesses?
Dominion Constructors has not built for NZX-listed Fisher & Paykel Healthcare previously according to its chief who told how his company won a $250 million contract to build a 28,000sq m new Auckland research and development building.
Brett Russell, Dominion managing director, said the company had been working with F&P Healthcare for at least the past 12 months on plans for the new building.
The contract to develop the flat empty site between Nassipour Way and the Tāmaki River estuary was a substantial one for his business.
“This ranks as our largest job right now,” Russell said.
F&P Healthcare announced on March 6 how it had appointed Dominion to the work, which is its fifth at East Tāmaki. Separately, the healthcare business plans to expand at Karaka and has sought a plan change application from Auckland Council to allow that to proceed.
The company sought Overseas Investment Office consent when it struck a deal to buy 104ha of Karaka land for $275m two years ago.
Clearance was needed because although Fisher & Paykel Healthcare is 34% New Zealand-owned, 32% is in Australian hands, 15% American, 15% British and the rest are other overseas entities at the time of the application.
The company announced it planned to grow substantially via the land deal and has been headquartered here since 1969. It is creating what it calls its second campus to complement its existing location at Highbrook.
Scott St John, chairman, said in late 2002 that East Tāmaki was nearing capacity.
“We have consistently signalled the importance of long-term infrastructure planning to help us deliver on our sustainable, profitable growth strategy and our aspirations of doubling constant currency revenue every five to six years. In order to take advantage of the opportunities ahead of us, we need more space,” St John said then.
At the site of its new East Tāmaki building, Russell said initial preparatory work had been undertaken during this dry summer. Infrastructure and civil contract specialist John Fillmore Contracting did the earthworks. Dominion began on the site from the week of March 10.
The healthcare company was a business Dominion had “targeted as a long-term client”, he said.
Russell also cited Dominion’s work on the now-completed five-star Te Arikinui Pullman Auckland Airport Hotel, developed in a joint venture between Auckland Airport and Tainui Group Holdings.
Dominion completed the fit-out of the development, a project where it worked on 311 guest rooms on nine floors. That job was completed in October, 2023.
Other construction work for Mainfreight and Giltrap was also under way, Russell said.
The company worked on Auckland Airport’s new transport hub: “Dominion’s scope of works includes foundations, slabs, a four-level in-situ concrete structure with post-tensioned slabs on the footprint of the main international carpark,” the company said.
That new building outside the international terminal has integrated different modes of transportation, including rail, bus and car for passengers travelling to and from the airport.
Covered pick-up and drop-off areas and covered carparks with pedestrian access to terminals are features of that new building which has more than 2000 additional covered parking spaces, more than 40 accessible parking spots and 30 new electric vehicle charging stations.
Icon was the main contractor with Dominion Constructors as the concrete structure subcontractor, Dominion said.
But in his biggest project planned yet, Russell said the scheme for the 307ha 5000-home Beachlands project to create a new town centre in southeast Auckland were progressing.
“We’re working through that with the NZ Super Fund, looking at the next stages, doing a master plan. Within six months, we have to work out when we are starting earthworks.”
The Ministry for the Environment lists Beachlands South in the 149 projects accepted for fast-tracking under the law passed in December.
But Russell said a resource consent would be required for earthworks, so an application would have to be made to Auckland Council.
The Beachlands South Limited Partnership worked with Auckland Council, Auckland Transport and others to address concerns and reach agreements to finalise approval of the plan change.
Land to be developed includes the 170.5ha Formosa Golf Course and adjoining sites.
Planner Vijay Lala’s application for fast-tracking said the Beachlands South project was comprehensive and integrated and would initially provide 2700 dwellings and associated employment and community facilities.
“It is a shovel-ready project. The project was recently granted a private plan change by way of PC88, which confirmed that the project is consistent with the Auckland Future Development Strategy and the Auckland Unitary Plan. The project will result in significant positive environmental outcomes, including approximately 88 hectares of native bush restoration, reductions GHG emissions, as social and economic benefits to the wider community.
“Unlike the majority of other greenfields projects across Auckland, the Beachlands South proposal incorporates various funding solutions which will ensure the required infrastructure is delivered in the right place at the right time,” Lala’s application on the ministry’s website stated.
The waterfront house owned by Kurt Gibbons has been sold, according to a report on its listing.
Gibbons did not comment when asked this month.
But at what price did the Herne Bay place go for and to whom?
Some people in the sector say this could set a new record, with a potential $45m price tag.
Those in the know say a Kiwi living overseas paid $38m to $39m for the house where many millions were spent on refurbishment.
Others questioned the big price.
“That’s for a waterfront house but without a helicopter landing pad, so that makes other Herne Bay homes with boat houses and landing rights so much more valuable,” one insider said.
Some expect the new home Herne Bay home being planned by billionaire Nick Mowbray and partner Jaimee Lupton to beat all records in terms of valuations.
The couple applied to remove nine trees within 20m of the clifftop and do more native planting at their new place.
The Tree Consultancy Company submitted an arboricultural assessment to Auckland Council for the resource consent application.
“The property owner is proposing to remove several trees and other vegetation at 7 Marine Parade, Herne Bay, and undertake enrichment planting. The site is subject to a significant ecological area overlay. The site is well vegetated and there is a desire to improve [that],” the application says.
The 35th annual Property Council awards, sponsored by Rider Levett Bucknall, will be announced on June 13 at the Spark Arena.
Commercial office award candidates are Auckland’s Deloitte Centre, Spark New Zealand and Visa, Hamilton’s LIC Central Hub Building, MinterEllisonRuddWatts in Wellington, Ngāmotu House in New Plymouth and Dunedin’s Port Otago annex.
This category is for projects with a predominant use of office space and can be new developments or substantial refurbishments.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.
Short-term rates could drop to 4.5% over next six to 12 months.