Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build

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Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
QUARTER TWO 2017

Building bridges
 Showcase foreshore project receives more accolades

     HOTEL HEAVEN
       Tourism demand
     drives building boom

    COMMERCIAL
INVESTOR INCENTIVES
Plenty of projects in the pipeline
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
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Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
Taumanu Reserve Bridge 10                                                                        Resene Timber Design Awards 23

                                                                                                                                                                                                                                                                               CONTENTS
Cover stories                                                                               Cities                                                                                  Materials 
Wellington leading the national pack when it                                                 Future cities need to focus on liveability and                                           Emission reduction potential, high asset value
comes to commercial and industrial sector                                                    healthy living, Green Property Summit told                                     20       and growth in public awareness are driving
confidence, Colliers International Research                                                                                                                                           explosive growth in green buildings                                             22
reports                                                                               6     Design                                                                                  New Zealand should combine its sustainable
The largest recreational reclamation in the                                                  Major design awards showcased creative                                                   timber resources with an innovative
Southern Hemisphere has collected yet another                                                uses for wood in everything from architectural                                           manufacturing system to build faster and more
major award                                                                        10       excellence to engineering innovation                                           28       efficiently, an overseas expert urges                                           23

The ongoing tourism boom is boosting demand
                                                                                             Facilities Management                                                                   Property 
for new hotels throughout the country but will it
                                                                                             A global leader in architectural revolving doors                                         There’s an urgent need to reform city planning
be enough to meet the need?                                                        16
                                                                                             and security entrance systems is expanding                                               to integrate planning, decision-making and
                                                                                             Down Under                                                                     30       funding says Property Council Chief Executive
                                                                                                                                                                                      Connal Townsend                                                                   5

                                                                                                                                                                                      An historic 1920s Auckland warehouse
                                                                                                                                                                                      has been transformed into a modern, stylish
                                                                                                                                                                                      workspace                                                                       26

Supporters
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May 5, 2017 4:03 PM                                                                                                                                                                                      PROPERTYANDBUILD.COM DIGITAL EDITION                            3
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
New Zealand
         magnet
         cities and the
         infrastructure
         conundrum
         Auckland in the 1990s was a very different
         city that saw itself as something it was not,
         at least not yet
CITIES

         It had international ambitions              retail centre on Auckland’s
         but could not yet compete with              waterfront. Further commercial
         other cities around the world.              and residential development is
         Auckland was simply New                     occurring along Albert Street.
         Zealand’s biggest city, nestled               Large transport projects are un-
         quietly away at the bottom of the           derway. The $1.4 billion Waterview
         Pacific.                                    tunnel will link the southwestern
           Fast forward twenty years, and            and northwestern motorways.
         Auckland is what KPMG calls a               The tunnel is the missing last con-
         Magnet City. It attracts people,            nection of the existing motorway
         investment, and ideas. They are             network.
         internationally connected.
           Magnet Cities grow. Auckland              Integration initiative
         can now stand shoulder to shoul-            More importantly, the government
         der with other international cities,        and the Auckland Council have
         but there is still work to be done.         recently agreed to the Auckland
           The problem is that despite its           Transport Alignment Project
         1990s vision, Auckland prior to             (ATAP) to help ensure integrated
         amalgamation failed to plan for the         planning, decision-making and
         success it would attract.                   funding for future Auckland trans-
           The result; a severe housing              port projects.
         shortage with soaring prices and a            One of those future projects
         lack of infrastructure to cope with         is the Northern Corridor which
         a rapidly growing city.                     will turn a section of the SH18
           Because of poor planning and              Highway east of Albany into a
         previous under-investment in                full motorway, providing a direct
         infrastructure, Auckland is barely          connection to Northbound SH1
         treading water.                             Highway. This initiative will stimu-
           But it is not all doom and gloom.         late future population growth and
         Auckland Council and central                housing development in the area.
         government do have projects                   At the other end of New Zea-
         underway that will ease some                land’s North Island, Wellington is
         transportation woes. And they are           evolving into a different kind of
         working on how to fund infrastruc-          Magnet City, one that invests in
         ture to cope with future population         and promotes its own uniqueness.
         growth.                                     It is not trying to compete with
           The City Rail Link (CRL) is already       Auckland, far from it, but rather
         stimulating development, spawn-             complement it.
         ing the construction of office and            Wellington wants to become
         retail in the CBD.                          what in Magnet City parlance
           For example, the Precinct Proper-         is known as a “second city”. Its
         ties Commercial Bay development             attraction strategy is how it is
         is integrating a 39-level commer-           different to Auckland and in doing
         cial office tower with a world-class        so highlights its own strengths;

         4    DIGITAL EDITION PROPERTYANDBUILD.COM                                          May 5, 2017 1:33 PM
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
CITIES
                                                              out of the CBD, port, and airport.      acts, and more keep being added
                                                              The areas it will open up for devel-    to the statute book to circumvent
                                                              opment to accommodate growth            it and speed up development. It is
                                                              are huge.                               a mess.
                                                                Those investments are not               It is time for a total rethink in
                                                              primarily about solving existing        New Zealand about how we plan,
                                                              problems but are to avert future        fund and build our cities. That does
                                                              ones and unlock growth potential.       not mean we need to throw the
                                                                This proactivity could be called      baby out with the bathwater.
                                                              ‘luck’ because, like Auckland in the      We need to review spatial
                                                              1990s, there is no obvious coher-       planning, land use planning, local
                                                              ent spatial or development plan.        and central government deci-
                                                                                                      sion-making and funding for the
                                                              Regulation strangulation                built environment and infrastruc-
                                                              What is missing in Auckland             ture development. Planning and
                                                              and Wellington, and the rest of         environmental protection needs to
                                                              New Zealand’s major urban areas,        integrate with economic develop-
                                                              is integrated urban planning,           ment.
                                                              decision-making and funding               There is an increasing ground-
                                                              for infrastructure and the built        swell towards such a reform.
the movie / tech industry, tourism,                           environment.                            Property Council will be a central
cafes and culture, tertiary educa-                              Central and local government          part of that conversation.
tion, and government.                  “Central and           talk past each other rather than          Why? Because New Zealand
  Fortunately, Wellington is not       local government       engage in active conversation on        cities must grow, and evolve in
grappling with major transport                                the issues they are both facing.        a coherent way. This is non-ne-
                                       talk past each
infrastructure challenges. The                                  A contributing factor to this is      gotiable if they are to flourish as
recently opened Mackays to             other rather than      the complex myriad of legislation       Magnet Cities in the Asia-Pacific.
Peka Peka expressway will relieve      engage in active       and regulation. While many claim
existing congestion around the         conversation on the    New Zealand has a world-class           Connal Townsend is Chief Exec-
Kapiti Coast.                          issues they are both   Resource Management Act, the            utive of the Property Council NZ,
  The soon-to-be-completed                                    truth is it is not working for the      which represents the interests
Transmission Gully motorway will       facing”                environment or development.             of the commercial property
provide an additional transport                                 In reality, built environment and     investment industry – including
route up the coast, linking into the                          infrastructure decision-making          commercial, industrial, retail and
Hutt Valley, and feeding into and                             and funding are spread over many        property funds

May 5, 2017 1:33 PM                                                                                  PROPERTYANDBUILD.COM DIGITAL EDITION   5
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
Wellington office market
                              leads generally positive
                                 sector sentiment
                                       There has been a dramatic spike in the Wellington office sector,
                                       according to the Colliers International New Zealand Q1 2017
                                                  commercial investor confidence survey
PROPERTY

           6   DIGITAL EDITION PROPERTYANDBUILD.COM                                                       May 5, 2017 2:49 PM
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
10%                                                       Christchurch investor confidence

                                                                                                                       Overall                     Office                        Industrial                         Retail
         Auckland Investor confidence                                                    Wellington
                                                                                           70%
                                                                                                    Investor confidence
Results of our March 2017 quarter Commercial Property
                                                                                                        40%
Investor Confidence Survey:
•   New Zealand overall net confidence (optimists minus                                                 10%

                                                                                         Net Percent

                                                                                                                             Sep-12
    pessimists) has reduced to 24%, compared to 32% in Q4 2016.

                                                                                                                                                  Sep-13

                                                                                                                                                                        Sep-14

                                                                                                                                                                                                  Sep-15
                                                                                                                                                              Mar-14

                                                                                                                                                                                                           Mar-16

                                                                                                                                                                                                                                 Mar-17
                                                                                                                                                                                                                      Sep-
                                                                                                                                                                                 Mar-
                                                                                                                                      Mar-13
                                                                                                       -20%

                                                                                                                                                                                                                      16
                                                                                                                                                                                 15
•   In the last five years the national result has varied from positive

                                                                                                              Mar-12
    10% (June 2012) to positive 32% (December 2016).                                                   -50%
•   The top four markets are Queenstown, Tauranga / Mt Maunganui,
    Auckland and Hamilton for the third quarter in a row. Queenstown is                                -80%
    currently at 67% confidence and has maintained the highest spot for
    the past seven quarterly surveys.                                                   Overall – Three main centres
•          Christchurch
    Wellington                Investor
                overall confidence        confidence
                                   has increased to 29%, up from 22%                    Overall three main centres
    recorded in Q4 2016. The Wellington office sector has reached 39%,                                                           Auckland                       Wellington                              Christchurch
    its highest confidence since the survey began in Q1 2006.                                          80%
•   Christchurch investor confidence has reduced to -2%, down                                          60%
    from 15% last quarter, and is now at a similar level across all                                    40%
    sectors to Q1 2011.                                                                                20%

                                                                                        Net Percent
•   Overall, 10 cities recorded a reduction in investor confidence,

                                                                                                                                                                             Sep-14

                                                                                                                                                                                                             Mar-16
                                                                                                                                         Mar-13
                                                                                                        0%

                                                                                                                                                                                                                        Sep-16
                                                                                                                                                                                                                                 Mar-17
                                                                                                                                                           Mar-14

                                                                                                                                                                                               Sep-15
                                                                                                                        Sep-12
    most of them modest, with two increases, Wellington and

                                                                                                              Mar-12

                                                                                                                                                  Sep-13

                                                                                                                                                                                      Mar-15
                                                                                                       -20%
    Napier/Hastings. Interestingly, these are the same two markets

                                                                                                                                                                                                                                          PROPERTY
                                                                                                       -40%
    showing an increased confidence in residential pricing, see our
    Q1 2017 Residential Market Outlook Survey.                                                         -60%
                                                                                                       -80%
•   2,299 responses were utilized to construct the survey results.

       The confidence level reached             commercial space.                        gains, setting a record yet again.                                            for the World Masters Games and
       39 per cent, the highest result            In Auckland, Goodman has recent-         The tourism boom has stimu-                                                 the British and Irish Lions Tour,
       recorded since the survey began          ly announced it will be investing        lated increased overseas investor                                             which will add further pressure to
       in 2006, the firm reports                in excess of $44 million across          interest with four hotel devel-                                               the accommodation supply.
         Post-quake activity in Wellington      five developments at Highbrook           opments announced in the last
       has seen a 7 per cent reduction in       Business Park.                           month.                                                                        Office
       office stock, pushing vacancy rates        Two of those will be industrial fa-      These include a $60 million, Hol-                                           Auckland metropolitan office
       down in the CBD.                         cilities, as well as future stages of    iday Inn Express in Queenstown;                                               vacancy reached 5.6 per cent, an
         Prime office vacancy rates are at      The Crossing (offices), and a Quest      21-level, Four Points by Sheraton                                             eight-year low in September 2016.
       an all-time low of 1.2 per cent - less   serviced apartment expansion.            Hotels in central Auckland; a                                                 Developers that had the foresight
       than 3,000 sqm of space.                   Spark is committing to a new           six-level, Sebel Hotel in Manukau                                             and ability to absorb higher levels
         Colliers believes the disruption to    5,085 sqm purpose-built, four-level      City, and a seven-level, Hilton                                               of risk and plan for this a few
       the demand and supply equation           office development in Cathedral          DoubleTree in Wellington.                                                     years ago are now receiving strong
       will see the market swinging heavily     Square, being developed by Nexus           The combination of these devel-                                             enquiries for their new premises.
       in favour of the landlord, with rents    Point, signaling a return to the CBD     opments will add a much-needed                                                  Colliers expects overall stock to
       expected to go up over the next 12       in Christchurch.                         742 additional guest rooms to the                                             increase by 5 per cent by June and
       months.                                    Strong net migration in the year to    accommodation supply.                                                         vacancy to only peak at 8.2 per
         There is a resurgence of retail        February rose to 71,333, the fifth         There are no signs of a slowdown                                            cent (lower than the June 2014
       activity in the Wellington CBD with      consecutive month of net migration       in visitor numbers, as more arrive                                            vacancy rate).
       a flurry of new store openings from
       both from national and international
       retailers.
         Prime retail space is scarce in           Mixed results from quarterly count
       central Wellington. Since the arrival
       of David Jones last year, retail
       vacancy on Lambton Quay has de-             Colliers’ March 2017 quarter Commercial Proper-                               • Wellington overall confidence has increased to
       clined from 4.0 per cent (Dec-15)           ty Investor Confidence Survey unearthed some                                    29 per cent, up from 22 per cent recorded in Q4
       to 3.5 per cent (Jun-16) and now            interesting statistics:                                                         2016, with the Wellington office sector reaching
       3.3 per cent (Dec-16).                                                                                                      39 per cent, its highest confidence rating since
         Nationally in comparison to               • New Zealand overall net confidence (optimists                                 the survey began in Q1 2006
       Wellington, commercial investor               minus pessimists) reduced to 24 per cent,                                   • Christchurch investor confidence has reduced to
       confidence dropped.                           compared to 32 per cent in Q4 2016                                            -2 per cent, down from 15 per cent last quarter,
         However, it remains robustly pos-         • the last five years have seen the national result                             and is now at a similar level across all sectors to
       itive at plus 24 per cent, and there          vary from positive 10 per cent (June 2012) to                                 Q1 2011
       is no shortage of new projects in             positive 32 per cent (December 2016)                                        • overall, 10 cities recorded a reduction in investor
       the pipeline across a variety of            • the top four markets are Queenstown, Tauranga/                                confidence, most of them modest, with two
       property sectors.                             Mt Maunganui, Auckland and Hamilton for the                                   increases, Wellington and Napier/Hastings, the
         Supply can be slow to react to              third quarter in a row; Queenstown’s 67 per cent                              same two markets that showed an increased
       demand, and it is no surprise that            confidence rating helping it maintain the highest                             confidence in residential pricing
       developers are increasingly confi-            spot it has held for the past seven quarterly                               • some 2,299 responses were utilized to construct
       dent in undertaking development               surveys                                                                       the survey results.
       projects in times of shortage of

       May 5, 2017 2:49 PM                                                                                                                                          PROPERTYANDBUILD.COM DIGITAL EDITION                              7
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
New Zealand Key Economic Indicators – April 2017
                                                    Dec-16         Dec-16     Sep-16                Q-o-Q          Dec-15           Y-o-Y
                                                                                                                                                   2017F*         2018F*          2019F*
                                                   (yr rate)      (qtr rate) (qtr rate)            Change         (yr rate)        Change
           GDP Growth                                2.7%            0.4%            0.8%           -0.4%            2.2%            0.5%           3.1%            2.9%            3.4%

           Current Account (% of GDP)                -2.7%             NA             NA              NA            -3.4%            0.6%           -3.2%           -4.0%           -4.5%

           CPI Inflation                             1.3%            0.4%            0.3%            0.1%            0.1%            1.3%           1.0%            1.8%            1.8%

           Net Migration Gain (000’s)                  70              18              18              1              65               5              71              69              62

           Retail Sales (ex-auto)                    5.0%            0.8%            0.4%            0.4%            4.9%            0.1%           5.6%            5.0%            5.4%

           Unemployment Rate                         5.1%            5.2%            4.9%            0.3%            5.4%           -0.3%           5.0%            4.8%            4.8%

                                                    Jan-17          Dec-16         M-o-M           Jan-16           Y-o-Y         10 Year
                                                                                                                                                   2017F*         2018F*          2019F*
                                                   (yr rate)       (yr rate)       Change         (yr rate)        Change         Average
           Tourist Numbers Growth                    6.9%            9.9%            -1.9%           5.1%            1.7%            3.7%           7.0%            6.5%            4.9%

           Official Cash Rate                       1.75%           1.75%            0 bps           2.5%          -75 bps          3.61%           1.75%           1.75%          2.50%

           90 Day Bank Bill Rate                     2.0%            2.0%            4 bps           2.6%          -60 bps           3.9%           2.0%            1.9%            2.5%

           10 Year Government Bond                   3.3%            3.2%            6 bps           3.1%           23 bps           4.6%           3.0%            3.5%            3.8%

           Floating Mortgage Rate                    5.7%            5.7%            1 bps           5.8%           -5 bps           6.8%           5.1%            5.1%            5.6%
PROPERTY

           3 Year Fixed Housing Rate                 5.5%            5.5%            0 bps           5.4%           16 bps           6.9%             NA              NA              NA

           Consumer Confidence                        127             129             -1%             120             6%             119              NA              NA              NA

           NZD vs US                                  0.72            0.71            1%             0.66             9%             0.75            0.70            0.69            0.67

           NZD vs UK                                  0.58            0.58            0%             0.46            25%             0.47            0.57            0.53            0.50

           NZD vs Australia                           0.94            0.95            -1%            0.93             1%             0.85            0.92            0.91            0.87

           NZD vs Japan                                82              82             0%              76              7%              74              79              80              81

           NZD vs Euro                                0.68            0.67            1%             0.60            14%             0.57            0.66            0.68            0.69
           Source: NZIER, Colliers International Research *March year forecast

           New Zealand Prime Indicators
                                                                                             Prime Capital Values (%
                                                  Prime Rents (% Change)                                                                           Prime Vacancy Rate
                                                                                                    Change)
           Property Sector
                                                 12-Months             12-Month             12-Months           12-Month                                                      12-Month
                                                                                                                                     Historical             Current
                                                 to Mar-17             Forecast             to Mar-17           Forecast                                                      Forecast
                                                                  Office                                                               Mar-16               Mar-17               Mar-18

           Auckland Metropolitan***                   5.8%                  1.1%               9.7%                 4.8%                 5.7%                6.1%                 8.9%

                                                                  Office                                                               Dec-15               Dec-16               Dec-17

           Auckland CBD                               7.6%                  6.5%              14.7%                 7.7%                 1.2%                2.8%                 5.4%

           Wellington CBD**                           4.4%                 24.5%               8.8%                31.3%                 2.1%                1.2%                  N/A

                                                                Industrial*                                                            Feb-16               Feb-17               Feb-18

           Auckland                                   3.6%                  2.0%              12.6%                 2.0%                 1.7%                1.4%                 2.2%

                                                                Industrial*                                                            Sep-15               Sep-16               Sep-17

           Christchurch                               1.0%                  0.0%               6.1%                 0.0%                0.3%                 0.3%                 0.5%

                                                                Industrial*                                                            Nov-15               Nov-16               Nov-17

           Wellington**                               3.9%                  5.0%               6.7%                 5.0%                4.0%                 0.6%                 1.0%

                                                                  Retail                                                               Dec-15               Dec-16               Dec-17

           Auckland CBD                               1.7%                  4.0%              11.2%                 4.0%                2.5%                 2.4%                 2.2%

           Wellington CBD**                           6.7%                 -0.6%               9.6%                -2.1%                7.3%                 8.8%                 7.1%

           Auckland Shopping Centre                   7.0%                  5.1%              13.0%                 5.1%                1.3%                 1.7%                 1.6%
           Source: Colliers International Research           *A combination of industrial office and warehouse space at a ratio of 20:80
           **Wellington rental figures are gross and capital values based on net rent. Wellington Retail Vacancy figures are overall. ***Financial indicators are Auckland City Fringe.

           8    DIGITAL EDITION PROPERTYANDBUILD.COM                                                                                                                        May 5, 2017 2:49 PM
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
Commercial Property Investor Confidence Survey Results
Region                                   Mar-17           Dec-16           Sep-16              Jun-16              Mar-16              Dec-15              Sep-15

Queenstown                                 67%              69%                 70%              73%                 67%                 62%                 52%

Tauranga/Mt Maunganui                      56%              65%                 61%              66%                 58%                 55%                 42%

Auckland                                   47%              59%                 58%              65%                 54%                 55%                 42%

Hamilton                                   41%              45%                 42%              31%                 38%                 28%                 28%

Wellington                                 29%              22%                 31%              33%                 28%                 19%                 12%

Nelson                                     22%              27%                 18%              13%                 18%                 16%                 -1%

Napier/Hastings                            13%              12%                 14%              17%                  8%                  6%                 -8%

Dunedin                                    10%              25%                 10%               5%                  8%                 -1%                 -7%

Rotorua                                     4%              11%                 N/A               N/A                 N/A                 N/A                 N/A

Christchurch                               -2%              15%                 9%               10%                  9%                 16%                 13%

Whangarei                                  -5%              13%                 -8%              -4%                -20%                -24%                -24%

Palmerston North                           -6%               5%                 1%               -5%                 -6%                -14%                -12%

New Zealand Overall                        24%              32%                 30%              32%                 27%                 26%                 17%

                                                                                                                                                                               PROPERTY
Note. Figures are rounded

  Auckland Industrial Vacancy                                                         Permanent Arrivals and Departures

  The last quarter has seen the          is similar to the already estab-
completion of Auckland Airport’s         lished Elliot Stables and can be ac-
Quad 7, Mitre 10’s Albany head           cessed through the iconic façade
office and EMA’s employment              on Queen Street or at street level
campus in Newmarket, increasing          on Swanson Street.
the office stock by 18,600 sqm.
A further 17,500 sqm is expected         Industrial                              Commercial Interest Rate Guide
to be completed by the end of this       The strength in the Auckland
                                                                                  Date                          3 Year Term (Indicative Borrowing Rate)
year.                                    industrial market continues with
                                         the latest survey showing 2.1 per        April 2016                                           4.83%
Retail                                   cent overall vacancy, the lowest
A new 590 sqm dining precinct at         on record since the survey began         May 2016                                             4.85%
125 Queen Street has been com-           over 20 years ago.
                                                                                  June 2016                                            4.88%
pleted and is now is in the process        In the last six months, prime
of being leased.                         vacancy has declined from 1.7 per        July 2016                                            4.77%
  The developer, Special Situations      cent to 1.4 per cent, and second-
Assets Limited, acquired the build-      ary vacancy from 2.4 per cent to         August 2016                                          4.59%
ing in 2014 after it had been vacant     2.3 per cent.
                                                                                  September 2016                                       4.52%
for five years, with the goal to bring     Despite over 250,000 sqm of
premium retail, dining and office        new development being completed          October 2016                                         4.57%
space to the Auckland CBD market.        in the past 12 months, the amount
  New World supermarket is in            of prime space available remains         November 2016                                        4.81%
the basement of the building,            tight, causing an overflow of
                                                                                  December 2016                                        4.96%
with the ground floor hosting ASB        demand into the secondary sector,
along with further retail space still    particularly concentrated in the Mt      January 17                                           5.22%
available for lease.                     Wellington, Onehunga / Penrose
  The dining precinct is located on      and Rosebank / Avondale areas.           February 17                                          5.10%
level 1, with a gym, crèche and 28         This recent crop of develop-
                                                                                  March 17                                             5.10%
level office tower directly above.       ments includes the new state-
The exterior also has a giant LED        of-the-art Sistema factory of           Source: ANZ Bank & Colliers International
signage screen for tenant use.           53,000 sqm completed Q3 2016            Note: the lending rate quoted in the table is not necessarily what you will be offered,
  The laneway-style dining precinct      at Auckland Airport.                    and should be regarded as indicating medium term trends.

May 5, 2017 2:49 PM                                                                                                          PROPERTYANDBUILD.COM DIGITAL EDITION          9
Building bridges - HOTEL HEAVEN COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline - Property and Build
A bridge to success
                                                    The largest reclamation in the southern hemisphere
                                                   built for purely recreational purposes can’t seem to stop
                                                                    collecting major awards
CONSTRUCTION

               10   DIGITAL EDITION PROPERTYANDBUILD.COM
CONSTRUCTION

PROPERTYANDBUILD.COM DIGITAL EDITION   11
Auckland’s Onehunga Foreshore               beautiful to look at, with function      “Some innovative thinking from          The project had a long gestation
               Restoration Project has garnered            & form - it ticks all the boxes for    all parties, including the con-         Burke explains, beginning in the
               numerous accolades over the                 me.”                                   tractor and fabricator, allowed a       late 1970s with the construc-
               past couple of years, the most                 Artwork on the bridge’s interior    solution to be found which met          tion of the first SH20 – although
               recent being the Isthmus Group              timber panelling was commis-           engineering and architectural           the proposed duplication in the
               winning the prestigious WAN                 sioned with guidance from the          objectives as well as fitting within    mid-2000s brought community
               Transport Award 2016 award for              project’s Mana Whenua Maori            budget,” Burke notes.                   dissatisfaction to a head (see
               the Taumanu Reserve Bridge.                 advisors and undertaken by artist        Installation of the bridge            Long labour of love sidebar).
                 The $5 million bridge was a               Bernard Makoare. The resulting         truss was a further logistical            The community successfully ar-
               worthy winner of a WAN award                contemporary design was carved         problem requiring a full motorway       gued for the park proposed in the
               that celebrates designs that                by machine, while in counterpoint      closure. “The night lift was delayed    1970s to be built and funded by
               are driving change within the               anodized aluminium shells adorn        twice due to high winds, but in the     NZTA and Auckland Council. “Our
               transport sector – projects that            the gateway upstands.                  end it went without a hitch.”           involvement began in about 2009
               not only enhance movement and                  HOK Vice President Anthony            Isthmus was well placed to            and the wider foreshore project
               access, but also advance social             Leslie was equally complimentary,      handle this difficult project, having   commenced in 2010 and was
               mobility and reinvigorate civic             appreciating the intricacy of the                                              completed, including the bridge, in
               spaces, from trains and tram sta-           design. “The detailing is fantastic.                                           2015,” Burke says.
               tions to airports and seaports.             I think this project is beautiful                                                “All in all it was an excellent ex-
                 Taumanu Reserve Bridge re-                and a very unusual and sensitive       “I think this project                   ample of a five-year collaborative
               stores a connection to a re-imag-           solution to a problem.”                is beautiful and a                      effort by the Fulton Hogan Consor-
               ined coastal landscape created                                                                                             tium, which also included Tonkin +
               after motorway development                  Technical tasks
                                                                                                  very unusual and                        Taylor, as well as bridge design sub
               in the 1970s severed the local              It wasn’t all plain sailing for        sensitive solution to                   consultants Aecom, with bridge
               populace from the sea.                      urban and landscape design             a problem”                              fabrication being undertaken by
                 To resolve the problem of a park          consultancy Isthmus, however,                                                  Eastbridge.”
CONSTRUCTION

               in two parts, a bridge of sufficient        as Associate Sean Burke recalls.                                                 Isthmus continue to hone its
               form and experience was required            “The bridge had some technical         worked on a number of large-scale       Taumanu Reserve Bridge urban
               to stitch the halves together, with         challenges in terms of spanning        public realm projects over the          and landscape design skills work-
               a legibility that was of the park and       and providing sufficient clearance     past 30 years including the New         ing on a wide variety of projects,
               not the motorway.                           to SH20 as well as ensuring a          Plymouth coastal walkway as well        including several for the Transport
                 Beautifully balanced and propor-          balance with access grades and         as Oriental Bay and Kumutoto in         Agency.
               tioned, the bridge moves into the           park footprint,” he explains.          Wellington.                               “We undertake a wide variety
               adjacent constructed and planted              “These problems disap-                  “We have also provided technical     of work, including in the housing
               landforms and abutments and is              peared with the introduction of        input into roading and energy           space with Hobsonville Point,
               bookended by basaltic concrete              a camber to the bridge, which as       infrastructure through the con-         but also urban work such as the
               panels.                                     well as making it stronger provided    senting, design and build phases        Freyberg Square upgrade and park
                 The jury praised the resulting            a reveal sequence of the harbour       across many projects such as the        development such as Barry Curtis
               seamless integration of the bridge          as part of the user experience.”       North Island Grid Upgrade, Tauhara      Park,” Burke adds.
               with the landscape, with Transport            In addition, a throw screen was      ll and the Waitahora Windfarm,”           Little wonder then that Isthmus
               for London Technical Sponsor for            added to the design brief late in      Burke adds.                             had been shortlisted for WAN
               River Crossings Catherine Hallett           the piece, which necessitated a           “In addition, we have completed      awards previously with Barry
               hailing the “innovative” design.            reworking of the structural ele-       a number of smaller bridge proj-        Curtis Park and was one of the
                 “It stands out, it does exactly           ments associated with the timber       ects, including the Te Puru bridge      final candidates in the Infrastruc-
               what it says it’s going to do. It           cladding as well as developing a       as part of the Beachland to Mar-        ture category of this year’s WAN
               links to the beach, it looks like the       concept for the throw screens          aetai coastal walkway, and feature      award - again for Taumanu Reserve
               beach. Beautiful to walk across,            themselves.                            bridges for Hobsonville Point.”         Bridge.

               12   DIGITAL EDITION PROPERTYANDBUILD.COM                                                                                                      May 5, 2017 1:40 PM
CONSTRUCTION
                        “We have also just won the World    was accessible and well used
                      Architecture Festival Landscape       prior to the construction of the
                      Award for Kopupaka Park at West-      Southwestern Motorway,” they
                      gate for Auckland Council, while      observed.
                      the New Plymouth walkway also           “Featuring basalt tongues,
                      won an International Federation of    beaches and reduced access
                      Landscape Architects award some       areas to provide habitat for
                      10 years ago,” Burke notes.           avian wildlife, it capitalised on the
                                                            enthusiasm of the community, and
                      Engineering excellence                involved them to create a reserve
                      The Onehunga Foreshore Resto-         and foreshore that gives the im-
                      ration Project was itself an award    pression of having been naturally
                      winner, having previously been        formed prior to the motorway con-
                      recognised with one of engineer-      struction. During land reclamation,
                      ing’s most prestigious awards         the entrants pioneered a consent
                      - the IPENZ Arthur Mead Environ-      process that has been adopted by
                      ment & Sustainability Award.          Auckland Council.”
                        The IPENZ judges’ award citation      Tonkin + Taylor acted as lead
                      was complimentary of the project      consultants for the Taumanu
                      now known as Taumanu Reserve          Reserve project, contributing hard
                      and the Fulton Hogan-led team         engineering expertise along with
                      that constructed it: “This project    environmental guidance and de-
                      addresses the long-standing           sign coordination, Design Manager
                      separation of the Onehunga            & Senior Civil Engineer Mark Foster
                      community and a foreshore that        explains.

May 5, 2017 1:40 PM                                        PROPERTYANDBUILD.COM DIGITAL EDITION   13
CONSTRUCTION

                 “This was a unique project but            • cycleway design                       The other key complexity was           gravel/shell pocket beaches
               similar undertakings with Isthmus           • stormwater design                   the fact that the project had been     • a pedestrian path and cycle
               include the Oriental Bay foreshore          • geotechnical design and             initiated and driven by the com-         path along Orpheus Drive
               redevelopment, the Maratai to                 liquefaction assessment             munity and therefore had a wide        • the Taumanu Bridge, a
               Beachlands Coastal Walkway that             • geotechnical monitoring             range of stakeholders, often with        shared-use pedestrian/
               included the award-winningTe                • contaminated land assessments       competing objectives that had to         cycle bridge over SH20
               Pura Bridge and the New Plymouth            • construction supervision            be delicately balanced.                • public amenities – boat
               Coastal Walkway,” he adds.                  • marine and terrestrial ecology.       The third key challenge was the        ramp, toilet block, park fur-
                 Some 25 staff were involved on                                                  difficult geotechnology. “Some           niture and a new carpark
               what was one of the environmen-             Regulatory restrictions               parts had up to 10 metres of very      • infrastructure upgrade of
               tal and engineering consultancy’s           Given this extensive brief it’s       soft soil while others were on rock,     existing stormwater services
               biggest undertakings as lead                little wonder that Taumanu posed      so it was tricky dealing with the        including extension of the One-
               consultant on a lump sum project,           several key challenges, the           challenges of the differing geology      hunga Lagoon outlet culverts
               although it is also working on the          major one being the New Zealand       and ground conditions.”                • upgrade of Transpow-
               $1.4 billion Waterview Connection           regulatory context. “The environ-                                              er’s pylon footing.
               as one of three design consul-              mental regulations specifically
               tancies involved in the Well-Con-           discourage reclamation but this                                                Needless to say, Taumanu pro-
               nected Alliance that includes the           project required a large amount of    “We chose to                           vided Tonkin + Taylor with several
               NZ Transport Agency, Fletcher               reclamation so overcoming those       go with a highly                       key lessons that are standing it
               Construction, McConnell Dowell              hurdles was a major complexity,”      collaborative, highly                  in good stead as it works on two
               Constructors, Beca Infrastructure,          Foster notes.                         integrated approach                    similar projects on the Kapiti Coast
               Parsons Brinkerhoff and Obayashi               “We worked very closely with                                              and north of Auckland, both of
               Corporation.                                resource management planners to
                                                                                                 to the design and it                   which also include a seawall and a
                 Tonkin + Taylor was tasked with           effectively tailor the design spe-    really bore fruit”                     coastal walkway.
               providing an exhaustive range of            cifically to the legislation rather                                            “The main lesson for us was us-
               skills and services including:              than shoehorning the design into        Tonkin + Taylor successfully         ing the legal framework to provide
               • design management                         the legal requirements, as often      overcame these various challeng-       a really good basis for steering
               • RMA planning                              happens with other projects.”         es, designing a stunning reserve       the design, which came to fruition
               • obtaining resource consents                  Working with the coast was         that includes:                         thanks to our really collaborative
                 for the 250,000m3 reclama-                equally important as a key            • 1.4km of restored coastline          approach with Isthmus,” Foster
                 tion in the Manukau Harbour               requirement was the restoration       • 6.4 hectares of new parkland         maintains. “We chose to go with
               • stakeholder manage-                       of the natural character of the         and beaches along a one-kilo-        a highly collaborative, highly inte-
                 ment and consultation                     coastlines. “We basically built the     metre stretch of coastline           grated approach to the design and
               • civil design                              project around restoring what was     • extension of the exist-              it really bore fruit.”
               • pavement design                           once lost – we strove for a natu-       ing parkland surrounding               The Onehunga Foreshore Project
               • structural design                         ral-looking project so everything       the Onehunga Lagoon                  proved equally instructive for
               • coastal processes assess-                 was designed to look as if it was     • a meandering shared-use              head contractor Fulton Hogan,
                 ment and plan form design                 always there and not man-made,”         path through the extensive-          as Project Manager Nariman
               • coastal structures design                 Foster explains. “Without that          ly landscaped parkland               Behzadi explains. “It was a major
               • earthworks and geo-                       approach it would have been tricky    • a series of rock headlands, three    undertaking that demanded a core
                 metric design                             to get a resource consent.”             new sandy beaches and six            engineering team consisting of

               14   DIGITAL EDITION PROPERTYANDBUILD.COM                                                                                                   May 5, 2017 1:40 PM
park for the people of Onehunga        the effect on the travelling public,       An added complication arose
                                      was something a bit different          but the lift itself was completed in     when the team found the task
                                      for Fulton Hogan to be involved        four to five hours. “We started at       couldn’t get the lift to work with
                                      in and we are very proud of the        7pm with a staged closure and had        one crane, having abandoned the
                                      result that our design partners        the crane on the road and the first      original approach that required two
                                      and our construction teams have        section closed around 10 pm,”            cranes and would have taken at
                                      achieved.”                             Behzadi reveals.                         least two days. “There was no way
                                        His team also learned a lot when        “The programme called for             that could have been done in the
                                      it came to lifting the 84-me-          the beam to be placed around             seven-hour window allowed by the
                                      tre-long bridge structure, which       3-3.30am, the crane dismantled           NZTA.”
                                      was fabricated in Napier, brought      by 5am and off the road at 5:30am          As if that wasn’t enough, high
                                      to the site and assembled before       but the lift started at 12 and the       winds caused the cancellation of
                                      being lifted and placed using          beam was placed by 1am.”                 the initial planned lift. “The wind
                                      a 450-tonne Grove GMK 7450                The task gave Behzadi and the         was gusting at up to 50km per
                                      mobile crane with 100t counter-        Fulton Hogan team a new-found            hour, but the crane’s limit was
                                      weight and MegaWingLift from NZ        appreciation of the extensive            36km per hour due to its weight,”
                                      Cranes.                                preparations required for such big       Behzadi says.
                                        “The beam truss weighed 113          lifts. “It took us six months’ work,       A rock concert meant the road
                                      tonnes and used 96 per cent            which included modelling how the         couldn’t be closed on the second
                                      of the crane’s capacity, which         bridge was going to act once it          weekend while the wind disrupted
                                      required six months of detailed        was lifted using a single crane,” he     the team’s carefully laid plans
                                      planning by the NZTA, NZ Cranes        recalls.                                 again on the third weekend. “We
                                      and the Auckland Motorway Alli-           “Lifting at certain points results    had to wait right up until the night
                                      ance,” Behzadi recalls.                in a lot of flexing and bending, and     to make the call to go ahead with
                                        This challenge was further com-      the beam was so long it had to be        the lift.”

                                                                                                                                                                 CONSTRUCTION
                                      pounded by consent restrictions        supported on two jinker units.”            The frustration and delays
                                      that meant any detours or lane                                                  were all worth it however, as the
                                      closures could not add more than       Meticulous modeling                      high-precision lift in December
                                      five minutes to the travel time        The Fulton Hogan team therefore          2014 won Fulton Hogan both the
                                      of motorists to or from Auckland       had to model the entire transport        Project of the Year and People’s
                                      airport.                               route to ascertain the best and          Choice awards at the NZ Annual
                                        Several traffic analyses and         most efficient method of getting         Crane Association Conference
four permanent staff on site and      studies were undertaken with           the bridge to the lifting posi-          Awards.
three senior managers off-site,”      Beca and the NZTA to ensure there      tion. “This also showed us what            “We are currently implementing
he says.                              would be no delays on what was a       services such as street lights           the lessons learned on the Tauma-
  “In addition, there were six on     key arterial route to the airport.     and fencing barriers needed to be        nu Bridge lift on a bridge site on
the structures team and up to 20        “We estimated it would take          shifted or removed ahead of time.”       the Albany Highway in Auckland’s
operators handling the earth-         us four to five hours to set up          The crane placement position           North Shore involving a 40m, 70-
works, which saw 180-200 truck        the crane offline before one lane      straddled two high pressure gas          ton load that is next to a school,
movements per day at the height       was shut to enable us to do more       lines servicing north Auckland,          gas line and a sewer,” Behzadi
of the earthworks season.”            work,” he explains. “We would          which in turn demanded close liai-       reveals.
  Behzadi was personally involved     then shut the second lane and          son with Vector, who were eventu-          The Taumanu Bridge project has
in the structure team, although       move the crane closer to the final     ally placed on standby along with        clearly not only spawned several
the most difficult aspect of the      position.”                             the fire brigade. “We had to locate      award-winning concepts, but also
project was finding new meth-           The Fulton Hogan team was            the entire length of gas line in         laid the foundation for further
odologies to build the bridge and     given a seven-hour window on           the work area and include it in the      cost-effective development of
innovative ways of reclaiming land.   the weekend to complete the de-        model to ensure correct pressure         similar New Zealand infrastructure
  “Creating an iconic bridge and      manding task in order to minimise      loadings on the pipes.”                  in future.

   Long labour of love

   The Onehunga Foreshore Restoration              Local Board and the New Zealand Transport          area in an environmentally-sound manner.
   Project is the result of 40 years of            Agency.                                              More than 30,000 plants and 350 trees
   community advocacy, most recently led by         Fulton Hogan (with Tonkin + Taylor                were planted, including pohutukawa, cabbage
   The Onehunga Enhancement Society.               Ltd, Isthmus Ltd and URS) won a design             trees, totara and kowhai, which provide an
     The community was keen to reconnect the       competition to design and build the park.          ideal habitat for the native birds that are
   Puhea Creek to the sea, the creek having         Their concept looked to the original              found in the foreshore.
   been separated from the harbour in 1975         shoreline that had been shaped by the                Auckland Council and Watercare also
   when the motorway was built and proposed        Manukau’s natural forces: a sweeping bay           collaborated to identify and fix potential
   amenity enhancements were not carried out.      with volcanic lava flows and smaller pocket        sources of stormwater contamination within
     The community’s aspirations to reconnect      beaches nestled between rocky headlands.           the 10 sub-catchments that feed into
   Onehunga to the sea and recapture the lost       Independent commissioners in 2012                 the Onehunga Bay, leading to a significant
   biodiversity and recreational opportunities     shared their vision, granting resource             improvement in water quality.
   came to the fore decades later as plans to      consents for the project subject to                  The environmental restoration and
   complete SH20 took shape.                       conditions.                                        future management of the Manukau
     As a result, the $28 million Onehunga          Construction required some 334,000                Harbour remains an ongoing focus for
   Foreshore Restoration Project was advanced      cubic metres of fill, rock, sand and topsoil,      the local board, Manukau Harbour Forum,
   under a partnership between Auckland            and a special earthworks methodology was           Auckland Council, Mana Whenua and the
   Council through the Maungakiekie-Tamāki         developed to allow fill to be placed in a tidal    community.

May 5, 2017 1:40 PM                                                                                                  PROPERTYANDBUILD.COM DIGITAL EDITION   15
PROPERTY

           16   DIGITAL EDITION PROPERTYANDBUILD.COM   May 5, 2017 1:42 PM
 he proposed new luxury hotel development
                      T
                      at One Market Square will directly face
                      Viaduct Harbour on two sides and offer       “Your room
                                                                   is ready…”
                      guests stunning views of Auckland

                                                                   The ongoing tourism boom has sparked
                                                                   a corresponding flurry of new hotel
                                                                   developments virtually the length and breadth
                                                                   of the country

                                                                   Queenstown has taken the lead            New Zealand’s hotel sector.
                                                                   during New Zealand’s most buoy-             “Investors are clearly recognising
                                                                   ant period of hotel transactions         the huge economic benefits of

                                                                                                                                                       PROPERTY
                                                                   in a decade, notching up both            New Zealand’s tourism boom,” he
                                                                   the largest sales volume and the         says.
                                                                   biggest individual transaction.             “There was a record 3.5 million
                                                                     Colliers International’s hotel         visitors to New Zealand last year,
                                                                   sales survey has found more than         and the government is forecasting
                                                                   $500 million of hotel inventory          4.5 million annual visitors by 2022.
                                                                   changed hands in 2015/16, the               “That growth has driven record
                                                                   strongest period on record since         trading numbers in gateway cities
                                                                   2005/06.                                 like Auckland and tourist hot spots
                                                                     Queenstown accounted for just          like Queenstown.
                                                                   over 30 per cent of the total sales         “As a result, investors are
                                                                   volume, with nine sales over the         benefiting from strengthening
                                                                   24-month period totalling some           investment yields.”
                                                                   $173m.                                      Humphries says yields have
                                                                     The booming tourist hot spot           compressed in the order of 100 to
                                                                   also notched up the largest single       200 basis points across the five
                                                                   hotel transaction of the last de-        main tourism markets, with the
                                                                   cade, with the 273-room Novotel          strongest yields being achieved in
                                                                   Lakeside Queenstown changing             Auckland and Queenstown.
                                                                   hands for $91m.                             Almost two thirds (65 per
                                                                     Wellington was second in total         cent) of hotel transactions were
                                                                   sales volume, with five transac-         completed via public marketing
                                                                   tions worth $133m accounting for         campaigns, with Colliers Interna-
                                                                   26 per cent of the total. Auckland       tional brokering over 90 per cent
                                                                   came in third with $94m of sales,        of those deals.
                                                                   followed by Christchurch with               New Zealand-based investors
                                                                   $78m.                                    bought about $200m of hotel
                                                                     Dean Humphries, national               assets in 2015/16, accounting for
                                                                   director of hotels at Colliers Inter-    just under 40 per cent of transac-
                                                                   national, says the strong figures        tions by value.
                                                                   reflect high levels of confidence in        The biggest source of foreign
                                                                                                            capital was Hong Kong, accounting
                                                                                                            for 30 per cent of the total sales
                                                                                                            by value, followed by Singapore,
                                                                                                            with 18 per cent of total sales.
                                                                                                               Humphries says investors
                                                                                                            shouldn’t expect the market’s
                                                                                                            buoyancy to continue this year.
                                                                                                               “We anticipate sales activity will
                                                                                                            be significantly reduced as inves-
                                                                   "Investors are                           tors choose to hold onto assets
                                                                   clearly recognising                      to take advantage of the strong
                                                                   the huge economic                        trading conditions,” he says.
                                                                                                               “There will still be investment
                                                                   benefits of New                          opportunities, however, particular-
                                                                   Zealand's tourism                        ly as we expect hotel development
                                                                   boom"                                    activity to increase.”

May 5, 2017 1:42 PM                                                                                        PROPERTYANDBUILD.COM DIGITAL EDITION   17
PROPERTY

                                                            Auckland Airport is currently investing more than $1 million every working day on infrastructure improvements, including new
                                                                                                                    hotels to meet ongoing demand from local and international travellers

           Severe shortfall                            market and there is a clear need           sides of the site, the hotel’s views         • Sebel Hotel, a new 152-
           Humphries says new development              for luxury hotel accommodation in          across the harbour and beyond will             room, six-level hotel on
           opportunities will be driven by the         the CBD,” she says.                        never be built out.                            Lakewood Court, Manukau
           tourism boom and a projected                  “A luxury hotel has many                   Bull says the development                  • SO Sofitel, a 130-room hotel
           shortfall of 4500 hotel rooms               synergies with the amenities and           partnership model will keep the                on the former Reserve Bank
           across the country’s five largest           attractions located in the Viaduct         strategic waterfront land in New               site on Customs St East
           tourism markets by 2025.                    Harbour and will act as a catalyst         Zealand ownership, while opening             • Park Hyatt, a new 190-room
             “We expect the majority                   to attract even more visitors to           the project up to beneficial foreign           hotel on the former Team New
           of development activity will                the area.                                  investment.                                    Zealand site in Wynyard Quarter
           occur in Auckland, Christchurch,              “With 165 rooms, and a rooftop             Other major, publicly announced            • Ritz-Carlton, a new 300-room ho-
           Queenstown and Wellington,” he              bar proposed, we see this develop-         Auckland hotel projects include:               tel to be located on Albert Street
           predicts.                                   ment as adding to the desirability         • Four Points By Sheraton,                   • Pullman Hotel, a new 250-
             “We’re already seeing new op-             of Viaduct Harbour and the contin-           a 255-room hotel in a re-                    room hotel to be built beside
           portunities arise, such as the One          ued investment in the precinct and           furbished 21-level office                    the Novotel at Auckland
           Market Square development at                surrounding area.”                           tower on Queen St                            International Airport.
           Auckland’s Viaduct Harbour.”                  Bull says the company is looking
             Viaduct Harbour Holdings Limited          for a suitable development partner
           has appointed Colliers Internation-         who will build a world-class, iconic
           al to undertake a global search for         waterfront hotel that all Auck-
           a world-class development partner           landers can be proud of.
           to build a 165-room luxury hotel on           “We want a landmark develop-
           the One Market Square site, which           ment that will complement the
           was previously occupied by the              many great buildings already built
           Simunovich Fisheries building.              or underway in the wider Viaduct
             Angela Bull, Viaduct Harbour              Harbour and Wynyard Quarter
           Holdings Limited chief executive,           area.”
           says the waterfront site is excep-            The preliminary design by Warren
           tional, directly facing the Viaduct         and Mahoney, a leading architec-
           Harbour on two sides and with               tural firm behind some of New Zea-
           stunning views of Auckland.                 land’s most iconic buildings, will be
             “Viaduct Harbour is an outstand-          made available to the successful
           ing lifestyle precinct in Auckland          development partner.
           with unrivalled access to the                 The design offers a floor area
           water, quality restaurants, apart-          of 12,000sq m on a 1,288sq m
           ments and an international marina.          site. With the waterfront on two
             “One Market Square is perfectly
           positioned for a world-class hotel
           that will add to the vibrancy and
           attractiveness of the precinct.
             “We know that Auckland is                             The Auckland Harbour view
           critical to New Zealand’s tourist                             of One Market Square

           18   DIGITAL EDITION PROPERTYANDBUILD.COM                                                                                                                  May 5, 2017 1:42 PM
Tainui Group Holdings Chief             Construction is expected to
                                                                             Executive Chris Joblin says the         start by the end of this year, with
"Auckland Airport plays a key role in New                                    agreement reflects the strength         the hotel scheduled to open by
Zealand's growing tourism industry and in                                    of the relationship that has been       late 2019.
connecting Auckland to New Zealand and                                       established between Tainui Group          By this time, Auckland Airport’s
                                                                             Holdings and Auckland Airport.          international terminal will have
New Zealand to the world"                                                      “This is an exciting project that     undergone significant expansion
                                                                             will result in two complementary        and work will already be underway
                                                                             assets located in an exceptional        on the domestic section of the
                                                                             position at New Zealand’s main          future combined domestic and
Airport action                        Queen Te Atairangikaahu chose          gateway,” he notes.                     international terminal.
Elsewhere, Auckland Airport and       when she ascended to the Te              “This creates tremendous scope          Auckland Airport is currently
Tainui Group Holdings have an-        Wherowhero (throne) at the time of     to create a unique, authentic New       investing more than $1 million
nounced an agreement to develop       her Coronation. The chiefly associ-    Zealand experience for airport          every working day on infrastruc-
a new 5-star hotel adjacent to        ations of Te Arikinui are in keeping   visitors and hotel guests, including    ture improvements, and expects
Auckland Airport’s international      with the 5-star premium experi-        through unique cultural elements        this level of investment will likely
terminal and the existing 4-star      ence to be offered at the hotel.       incorporated in the design.”            continue into the near future.
Novotel hotel. The new premium
250-room hotel will be operated
by AccorHotels under the Pullman
brand.                                    Not enough rooms at the inn?
  Additional hotel development
has long been a feature of
Auckland Airport’s ‘airport of the       The new properties follow a recent report that                                                       Queenstown

                                                                                                                                                                PROPERTY
future’ vision, but Mark Thomson,        estimated a total of 26 additional hotels, above
Auckland Airport’s general manag-        and beyond what is currently planned, will be
er – property, says the timing has       needed over the next 10 years to meet expected
been influenced by unprecedented         tourism demand in major tourist centres.
demand for hotel accommodation             The research was a key part of Project Palace,
in Auckland.                             a programme to accelerate new private sector
  Building the hotel now also re-        investment in New Zealand’s hotel infrastructure
sponds directly to strong demand         led by New Zealand Trade and Enterprise and the
for accommodation that provides          government’s Investment Attraction Taskforce.
easy access to the airport termi-          NZTE, Tourism New Zealand (TNZ), and the Minis-
nals, he explains.                       try of Business, Innovation and Employment (MBIE)          during high demand periods in all the cen-
  “Auckland Airport plays a key          commissioned the research report in 2016 to gain           tres – this is particularly in summer and
role in New Zealand’s growing            a more accurate understanding of the demand and            autumn (December and March quarters)
tourism industry and in connecting       supply for hotel accommodation now and in the              and when there are major events on
Auckland to New Zealand and New          future across peak and off-peak seasons.                 • Auckland and Queenstown had consis-
Zealand to the world,” Thomson             Focused on Auckland, Rotorua, Wellington,                tently high occupancy rates (>80 per cent)
says.                                    Christchurch and Queenstown, the report shows              throughout 2015 and Queenstown is rap-
  “This hotel, which will benefit        that if demand and supply estimates are borne out          idly becoming an all-seasons location
from its premium location adjacent       the shortfall in new hotel rooms is expected to be       • Wellington enjoyed a stable occupancy rate
to the international terminal and        up to 4,526 across these centres by 2025 - over            (78 per cent) in 2015, with the December
the current Novotel, will provide        and above new hotels currently planned and equiv-          and March quarters having higher occupancy
more choices for travellers looking      alent to 26 hotels the size of the Sofitel Viaduct in      than the June and September quarters
for high-quality accommodation           Auckland.                                                • Rotorua and Christchurch had high occupancy
within walking distance of both            NZTE, TNZ and MBIE are working together with             rates (>80 per cent) in the December and March
terminals.                               local government and the private sector to identify        quarters in 2015, but lower occupancy during
  “Being able to walk to the termi-      available locations for additional hotels in each of       winter and spring (June and September quarters)
nals, rather than drive, has con-        the five locations studied and to pave the way for       • forecasts suggest that the demand for hotels
siderable appeal to hotel patrons        attracting new investment in hotel development.            will outstrip supply over the next 10 years in all
and will also help reduce vehicle          NZTE will use the research as the basis for a            regions so occupancy rates will continue to grow
movements on our roads.”                 prospectus that outlines the business case for           • international visitor arrivals will be a major
  The new hotel will trade as the        investment in New Zealand hotels to domestic and           driver of hotel demand (their numbers are
Pullman Auckland Airport and will        international investors, utilising its strong interna-     expected to grow 5.4 per cent per annum),
be developed in a 50:50 partner-         tional networks.                                           while domestic demand is expected to grow
ship with Tainui Group Holdings.           Economic Development Minister Steven Joyce               at 2.5 per cent per annum – China and Aus-
  As part of this agreement,             has asked NZTE to catalogue and present hotel              tralia are expected to be largest contribu-
Auckland Airport has increased           opportunities in other New Zealand centres as well,        tors to the growing international demand
its ownership stake in the Novotel       noting that tourism directly contributes $11 billion     • historical preferences suggest that de-
hotel to 50 per cent.                    or almost 5 per cent to GDP.                               mand for four-star and above quality hotels
  “The partnership with Tainui             Attracting high-value foreign investment into            will be strongest over the next 10 years
Group Holdings and AccorHotels           New Zealand is part of the government’s Invest-          • the market research was based on a range of
has been very successful and             ment Attraction Strategy, and contributes to               data sources including MBIE’s International
we are pleased to be extending           government’s Business Growth Agenda target of              Visitor Arrival forecasts and data, Tourism
this relationship to another hotel       attracting an extra $160 billion to $200 billion of        Industry Aotearoa hotel data, and Statistics New
project,” Thomson adds,                  capital by 2025.                                           Zealand’s Commercial Accommodation Moni-
  The hotel building will carry the        The research found:                                      tor. Colliers International provided proprietary
name ‘Te Arikinui’, which is the         • there is a current shortage of hotel rooms               information about planned hotel developments.
chiefly title that the Late Maori

May 5, 2017 1:42 PM                                                                                                 PROPERTYANDBUILD.COM DIGITAL EDITION   19
Future cities all about liveability and well-being
         Liveability and creating healthy communities will be the focus of future cities according to
         international sustainability experts

         Katie Swenson, a US-based
         leader in sustainable design
         for low-income communities,
         emphasised the importance of
         well designed, sustainable and
         affordable housing.
            Speaking at the recent Green
         Property Summit, Swenson argued
         that housing people and creating
         engaged communities not only has
         good social outcomes, but also
         saves a city money.
            “Failing to do so means you will
         be engaging with this problem via
         your health and social services.
         Therefore, the role our buildings
         play in creating healthy, engaged
         communities has far-reaching
CITIES

         social consequences.
            “For the homeless, when you
         design a home that is beautiful
         and well suited, 98 per cent remain
         stably housed. This indicates there
         are health benefits to how and
         where we live. This is a consider-
         ation for the property industry.”
            Swenson outlined her work for
         Enterprise Community Partners
         and the establishment of the
         Green Communities Criteria,
         the only national green building
         standard with direct applicability
         to affordable housing.                                                              “Cities of the future will be neigh-   for New Zealanders,” Eagles says.
            “Low-income communities                                                        bourhoods connected by high                To energise the private sector
         experience disproportionately high          "Cities of the                        speed internet, which links all the      towards green sustainability,
         rates of obesity, heart disease,            future will be                        systems needed to support these          Keung suggested greater financial
         diabetes and mental health issues.          neighbourhoods                        communities.                             incentives. “It is the classic carrot
            “The Green Communities Criteria,                                                 Rode’s advice to New Zealand:          and stick approach. We set the
         which is a national green building
                                                     connected by high                     “Make sure your buildings are            minimum standard.
         standard, harnesses the power               speed internet,                       better integrated into the site.           “However, if a developer reaches
         of design to improve residents’             which links all the                   Your street and traffic flows are        the higher targets, they get addi-
         health through “Active Design”              systems needed                        not coordinated with pedestrians,        tional funding support or space to
         requirements. This can include                                                    it’s crazy walking around here.”         develop.”
                                                     to support these
         simple, cost-effective measures                                                     Keynote speaker Dr John Keung,           Peter Mence, chief executive, Ar-
         like improving stairwell access and         communities"                          CEO of Singapore’s Building, and         gosy Property Limited and national
         visibility.                                                                       Construction Authority (BCA)             president, Property Council New
            “We also promote healthy                                                       made the case for more govern-           Zealand, called on the property
         neighbourhoods, rather than just                                                  ment leadership in sustainable           industry to do more.
         buildings. Access to services                                                     building. “Government must walk            “As a property industry, we must
         around a building are also im-                                                    the talk.”                               manage our resources reasonably.
         portant, and help create a happy,                                                   Andrew Eagles, CEO of the Green          “Personally, I do not believe the
         engaged community where people              Rode also emphasised the              Building Council, launched a policy      industry is moving fast enough, we
         want to live.”                              importance of using technology        position paper at the conference.        need to lift our game.”
            Summit speaker Davina Rooney,            to design, plan and connect our         “Better buildings and homes              In his closing address to the
         from Stockland Australia, agreed,           cities.                               mean a better quality of life. It’s      summit, Property Council Chief Ex-
         suggesting that we need to plan                “Ten years ago, green design       time to have a conversation about        ecutive Connal Townsend agreed.
         our future cities better to improve         was all about energy efficiency as    the built environment in New               “We all need to get on board and
         health and liveability.                     the cost of utilities was going up.   Zealand”.                                create sustainable, green buildings
            “Obesity has a post code. The            Today, technological innovation         “Working with industry and gov-        that people want to live and work
         urban planning we do now, and the           means utility costs are declining.    ernment to set out a trajectory for      in,” he says..
         infrastructure we put in place, will        Now, green development is about       the built environment will provide         The summit was a joint event by
         have a direct impact on the health          liveability and creating commu-       certainty for the construction           the New Zealand Green Building
         of our children.”                           nities and improving existing         and property sector and greater          Council (NZGBC) and Property
            American guest speaker Paul              buildings.                            productivity and better outcomes         Council New Zealand.

         20   DIGITAL EDITION PROPERTYANDBUILD.COM                                                                                                      May 5, 2017 4:04 PM
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