Flexibility the key to funding ground-breaking integrated housing development
In 2013, Creating Communities, a consortium of developers and builders working alongside Housing New Zealand began a project to take Housing New Zealand’s outdated properties in Glen Innes and transform them into a mix of private, affordable and social housing.
The 12ha redevelopment covers eight stages and, when complete, will convert what was 156 Housing New Zealand properties into more than 270 new homes. The integrated community will include 79 Housing New Zealand houses and 39 affordable houses with the balance being private homes. Floorplans have been designed to meet the accommodation needs of the community, including a range of 2, 3 and 4-bedroom terraced and stand-alone homes.
The project, the largest urban regeneration project ever undertaken in New Zealand, is unique and delivered some challenges due to the fragmented brownfields locations, a tight construction market, and consenting and development intricacies.
This scale and approach of the project brought some unusual funding challenges, requiring an innovative approach to structuring a funding facility that suited the timescale and complexities of the project.
BNZ property partners worked with Housing New Zealand and developers to determine the needs, time frames and sales expectations. The bank responded with a three-year funding facility with the inbuilt flexibility allowing Creating Communities the ability to tailor the amount and design of housing built in order to meet consenting constraints and future market demand.
BNZ managing partner Auckland City, Lyndon Settle says the Creating Communities project is meeting a wide range of the housing issues that Auckland faces.
“This ambitious project undertakes intensification of high value land only 10 kilometres from Auckland CBD and has been designed to meet the needs of all demographics in one integrated community,” he says.
“We spent a lot of time working with developers to understand the needs of the project. We could see that this was a transformational project at the early stages of growth so developed a bespoke funding solution that could move with both the current and future needs of the development.”
Due for completion in 2017, it is expected that Creating Communities Glen Innes redevelopment will set a benchmark for mixed use communities in New Zealand’s largest city.
The 12ha redevelopment covers eight stages and, when complete, will convert what was 156 Housing New Zealand properties into more than 270 new homes.