$250m SugarTree apartments first for years
The first major new Auckland CBD apartment development in several years has been unveiled by a consortium of developers.
Called SugarTree, the $250 million venture will begin in mid-2013 on a site between Union and Nelson streets in the central city.
The venture will be launched in Auckland tonight.
One of the developers, Wayne Allen, told NBR ONLINE he was confident of the necessary pre-sales commitments in the current market.
Mr Allen and his wife Mandy own the Turanga winery at Whitford, south of Auckland.
He told NBR that he had been relatively quiet since the global financial crisis.
But he has been involved in development in Auckland for 20 years and is finalising the $88 million Whitford Village extension, which includes 105 residential houses, townhouses and apartments.
Last year one of his companies involved in the Whitford development went into voluntary liquidation owing $6.64 million.
The SugarTree development company, Lily Nelson Union Joint Venture, is an equal partnership between Lily Investment FTC, a consortium of Chinese Investors and the Allen’s Nelson Union.
Lily Investment FTC, the Chinese joint venture partner, will be managed by two of the investors in the partnership, Min Jia and Tiejun Yi.
They are presently undertaking a $27 million, 100-section residential subdivision in Flat Bush, Auckland, which is almost 100% sold.
They have also completed projects in China with their largest project to date a $1 billion, 3500-apartment unit development in Chang Sha City, Hunan Province.
Consents have been obtained for a first stage of 11-storeys, comprising 152 apartments with one and two bedroom apartments plus eight live/work units and seven ground-floor commercial units with mezzanine floors, plus two levels of underground parking.
Stages two and three are scheduled for completion 18 months later taking the total number of units to 500 one-, two- and three-bedroom apartments.
The developers are touting the venture as an affordable inner-city alternative priced between $300,000 and $600,000.
“SugarTree will incorporate landscaped community spaces including water features, sculptures and courtyards creating an urban oasis on the edge of the city centre,” the developers say in a prepared statement.
“In the third stage of the development there will be a rooftop garden for residents with spectacular views over the harbour,” project director Darren Brown says.
He cited the estimated 11,000 to 20,000 housing shortage over the next three years.
The commercial units available on the ground floor of all the buildings will house bars, restaurants, cafes, delicatessens and other hospitality and food businesses.
The developers also obtained the blessing of Auckland mayor Len Brown, who welcomed the venture.