Private property developer Stephen Sutorius has written to Housing Minister Chris Bishop offering to build social housing on the site quicker and cheaper than Kāinga Ora
Bishop is encouraging Kāinga Ora to explore other options for use of the site, “including partnerships with other developers”
Housing Minister Chris Bishop said he’s “encouraging” Kāinga Ora to look at options like “partnerships with other developers”.
The Arlington site in Wellington’s Mt Cook continues to sit empty despite $48 million spent by Kāinga Ora on “preparing the land” for the now-paused project. The agency says work “may” recommence in the future.
The once-ambitious public housing development promised homes for 900 families but is now paused after a scathing report revealed Kāinga Ora was looking to record a $700m annual deficit in 2026/27.
Work stopped on a number of housing projects across the country as a result.
Construction on the Arlington development was due to be completed between 2023 and 2025, but its future is now uncertain, with nothing built except metal foundations in the ground.
Private property developer Stephen Sutorius, who owns company Thames Pacific, has written to Bishop offering to build social housing on the site quicker and cheaper than Kāinga Ora.
The Arlington Apartments site could be taken over by a private developer. Photo / Mark Mitchell
In a letter, Sutorius said he could deliver 255 Apartments by Q4 2026 using only 24% of the site area at a cost of either $160m or $199m, depending on whether it’s funded by the developer or the Government.
“We have been following the Arlington project over the years and have intimate knowledge of the site, surrounding area and challenges,” Sutorius said.
“We will take the development risk” with a fixed price agreed upfront he said.
The proposal includes a mix of one-, two- and three-bedroom apartments using less of the site than previously planned to leave room for green space and potential future development.
It would also make use of the current piling and earthworks “to re-coup money already spent”.
Thames Pacific is behind large-scale Wellington developments including The Paddington on Taranaki St and the soon-to-open Hyde Lane apartments on Courtenay Place.
Bishop hasn’t met with Sutorius about his proposal but has signalled that he’s open to Kāinga Ora working with private developers.
“I am expecting a briefing from Kāinga Ora detailing options for the Arlington development in the next couple of months. I am encouraging them to explore other options for use of the site, including partnerships with other developers,” he said.
Last month, Kāinga Ora spokesman Daniel Soughtton said they “expect work will recommence on-site once we have finalised our plans and worked through the resource consenting requirements”.
“We are unable to put a timeline on when that will be at this stage,” Soughtton said.
Now, the language is less certain, with a Kāinga Ora spokesperson telling the Herald in a statement this week: “Work on the site may recommence once we have finalised design options and consulted with the Government.”
The agency wouldn’t comment on whether it was in discussions with any developers. “If there were any talks they would be commercially sensitive”, the spokesperson said.
The Herald revealed in August that Kāinga Ora had spent $48m as of June this year on “design costs, demolition of existing homes, site decontamination, site enablement works, service connections, and piled foundations for one of the approved buildings”.
The Arlington site in Mount Cook, Wellington covers 1.77 hectares. Photo / Mark Mitchell
In early 2022, the Labour Government of the time celebrated $296m of public housing funding being directed toward the project to construct around 300 new homes, as well as a playground, community gardens, and an orchard.
“The 17,000sq m site is Kāinga Ora’s largest in the country and will consist of 16 buildings, ranging from town houses through to six-storey light-engineered timber apartment blocks,” a press release from then-Housing Minister Megan Woods said at the time.
In November last year, Kāinga Ora announced it would have to “take another look at costs and plans” due to “significant cost escalation”.
It said it was reworking how the development might look to ensure it was getting good value for money.
A new design is yet to be announced.
An architectural mock-up of the previous Arlington design. Photo / Stapleton Elliott
Peter Cooke of Mt Cook Mobilise, the local residents’ association, told the Herald last month locals are “annoyed” nothing has been built on the site yet and are keen to see it actually go ahead.
“We want to see it started and finished, so it is slightly frustrating that it has ceased.”
Cooke said the site is an asset to the community and the removal of the previous housing facility has left a deficit of public housing in the area.
Wellington City Missioner Murray Edridge said it’s unclear whether Kāinga Ora is still committed to the development despite the need for more housing only growing.
Edridge said he’s “not sure where Arlington is at” but believes given the urgent need for public housing in the capital, something needs to be done.
“I don’t think you can leave the site unutilised. That would be criminal.
“It is a fabulous site – it’s a very significant and strategic site for Wellington, so it would be a real shame if we didn’t see housing development happening there.”
Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in politics, local issues and the public service. Ethan is always on the lookout for a story and can be emailed at ethan.manera@nzme.co.nz or messaged on X (formerly Twitter) via the handle @ethanjmanera.
