Court victory could seal 600-home Havelock North subdivision

Hawke's Bay-based Lowe Family Holdings Limited and Andy Lowe (pictured) reached an agreement to sell 69ha of land for $58 million. Photo / NZME

A court decision could pave the way for a developer to subdivide a large piece of land on the outskirts of Havelock North for about 600 new homes.

The developer, CDL Land NZ Limited, said earthworks at the site could begin by the end of this year pending council consents.

In October 2020, Hawke's Bay-based Lowe Family Holdings Limited reached an agreement to sell 69ha of land for $58 million to CDL.

That large piece of land is located off Middle, Iona and Lane roads to the southwest of Havelock North.

Much of the land has been zoned for residential development under what is called the Iona Special Character Zone in the district plan.

The Overseas Investment Office (OIO) had to give consent for the large purchase as CDL is categorised as an overseas company.

Consent was given in July 2021 and the OIO noted the investment would provide "substantial and identifiable" benefits including by creating jobs and housing.

A rival New Zealand-owned developer Winton Property Investments - who offered a much lower price to buy the land - challenged that OIO decision and took the matter to the High Court.

Part of the land proposed to be subdivided for housing. Pictured is the intersection of Middle Rd and Iona Rd. Photo / Warren Buckland

Winton lost that judicial review in the High Court earlier this year and had its application dismissed.

However, Winton has since appealed that judgment, and the matter remains before the courts.

Despite an appeal pending, the initial outcome in the High Court marks a victory for CDL and its large subdivision plans.

"The initial resource consent applications have been lodged with council and, if approved, we expect to begin earthworks before the end of this year," a CDL spokesman said, when contacted this week.

"We are targeting over 600 sites for the whole development."

The highlighted area has been zoned for residential development within the district plan. Photo / Supplied

It is understood CDL plans to subdivide the land into those lots which will then be made available for housing.

The land has previously been used for casual sheep grazing.

The Overseas Investment Office stated its consent for CDL related to the company converting the land into a development "for about 600 new homes".

Rival developer Winton declined to comment on the matter while the appeal remained before the court.

Court documents revealed Winton offered $32m for the 69ha piece of land back in 2020 but had been willing to negotiate.

The Lowe family turned that down and opted to go with CDL's much higher offer of $58m, court documents stated.

A third group offered $49m.

Winton's challenge during the judicial review was based on six grounds or errors of law.

That included a claim, dismissed by the High Court, that an error had been made in assessing the benefits to New Zealand if CDL purchased the land.

CDL is categorised as an overseas company under the Overseas Investment Act because it is more than 25 per cent overseas-owned.

However, it has operated in New Zealand for about 25 years and specialises in large-scale greenfield residential developments.

"CDL has undertaken residential development projects all around New Zealand in the past, including in Havelock North," court documents read.

CDL Land NZ Limited is a subsidiary of NZX-listed CDL Investments NZ Limited.

The Lowe family owned the land on the outskirts of Havelock North for more than 50 years prior to selling it.