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Company linked to one of China’s richest woman to spend $200m on Auckland hotel

Fu Wah International Group, chaired by Chan Laiwa who is one of China's richest women, has agreed to build a new Auckland waterfront hotel worth $200 million in partnership with Waterfront Auckland, a council body.

Fu Wah, a Beijing-based real estate developer, will build a 200 room, five star hotel in the Wynyard Quarter on Auckland Council-owned land, the council organisation said in a statement. The development is awaiting approval from the Overseas Investment Office and would be completed by 2017.

"This deal is a direct result of Waterfront Auckland's involvement on the Mayoral Trade Mission to China in 2012," Auckland mayor Len Brown said. "It's an exemplar of the potential for council leveraging its strategic landholdings to attract investment into Auckland and to develop infrastructure that will attract further and ongoing benefits to the local economy while still retaining ownership."

Auckland Council wants to attract wealthy Chinese tourists to the city. More than 237,000 Chinese visited New Zealand in the past year, with total spending of about $732 million, according to Tourism New Zealand.

Fu Wah's Laiwa is worth US$6.4 billion according to Forbes. She is a member of the Chinese People's Political Consultative Conference, a political advisory body, according to the company's website. The developer says it has 1.5 million square metres of Beijing properties as well as other developments across China including cultural interests such as museums.

According to its website, "Fu Wah has won wide acclaim by virtue of its powerful financial strength, utmost good faith and sincere patriotic enthusiasm."

Earlier this year the Chinese developer bought the Melbourne Park Hyatt Hotel, reportedly for A$135 million.

(BusinessDesk)

Comments and questions
10

Will she front with the cash or formal commitment though

A lot of Chinese running around the country taking but few delivering. They seem to use the temptation of funds to then try and sell product - that's what they get a tick for back in the motherland - selling product - end

It should be NZ Super and ACC participating in building the NZ economy and tourism etc - not the Chinese. Ah that's right NZ Super should be investing in US and European investments alongside honourable investment banks !!!!!! or in solar energy start ups in the USA rather than start ups in NZ

Here we go again - the xenophobic racist comments just because it's China Chinese funds.

How about commenting on New Zealanders borrowing billions of dollars from overseas to 'invest' in coastal properties, baches and residential properties?

Absolute rubbish

I admire the Chinese and welcome them into NZ - I just get sick of hearing that they fail to deliver the dosh - ask any major Auckland or Wellington Solicitor and they will have stories of Chinese failing to front with the promised cash and deals falling over because of it - in fact normally a whole series of property settlements happens. They need to sharpen their act to be taken seriously.

I too have heard the same stories and when I investigate further, I find so many instances where the Brokers, Agents, Solicitors and Accountants have not even done basic due diligence on their China clients before getting themselves all excited at the big fat fees they dream of getting!

Example, a young couple whose uncle is the Chairman of a major Shanghai listed property company were going around wasting everybody's time. The brokers were so afraid of offending them that they did not even ask them for the mandate letter from the uncle!

Meanwhile, hundreds of millions of dollars of ddeals have happened - think Waste Management, Synlait and Crafar Farms just to name 3.

Twenty-eight (28) year old Malaysian emigrant King Khoo recently bought Auckland Council’s North Shore headquarters near Takapuna Beach for NZ$71 million (RM184.63 million) — one of this year’s largest commercial property deals in New Zealand. http://malaysiakini.propertyguru.com.my/property-news/2013/4/8741/malaysian-emigrant-buys-nz-commercial-property-for
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I'm pretty sure that the NZ Super Fund came second on this opportunity through its investment in Willis Bond.

Will Len and his ego be held in check whilst this 'opportunity' is scrutinised independently for adherence to regulations, or will he simply bulldoze this through to get on the front page of the Herald?

Quite how is the oppressive LEASEHOLD cost being treated in this exercise ?
Are the good rate payers of Auckland effectively funding that cost and subsidising our Chinese sisters ?

We're effectively paying ASB's ground rent for next 100 years and they are owned by Aussies so guess we shouldn't really discriminate.

No investor worth their salt would commit $200 M in leasehold property so it has to have been ditched to make project viable.

In 2013, 1100 bank staff will leave Multiplex New Zealand Property Fund's Albert St tower and head for the west and the water where Kiwi Income Property Trust will build its new headquarters. ... Charles Pink, ASB's chief executive, ... said the bank and Kiwi were jointly investing $160 million in the building ... Chris Gudgeon, chief executive of the trust's manager, said it was spending $121 million on the new building which included $16.5 million ground rent pre-payment and a holding cost allowance of $11.1 million calculated on a conventional interest cost capitalisation approach. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10629553

"The good thing about Wynyard is that the lease structures are much better, giving greater certainty, than those with private operators," she said, recalling how Kiwi Income Property Trust had pre-paid its ground rent in the area for ASB North Wharf for a 90-year term. Precinct had indicated their Wynyard innovation precinct would also have a pre-paid leasehold structure. http://www.nzherald.co.nz/aucklander/business/news/article.cfm?c_id=1503374&objectid=11205029 .

Shanghai-based New Development Group has been granted resource consent by the Auckland Council to built a 52-storey tower block in the city centre. At 209 metres, the $350m NDG Auckland Centre is set to be New Zealand's tallest inhabited building, beaten in height only by the Sky Tower. It will include apartments, a cinema, restaurants and a 302-room hotel and is due for completion in 2020. NDG's founder and chairman is Shanghai businessman Furu Ding whose interests own just under 1900ha of land in Northland and Waitakere. Ding bought the site of the new skyscraper in 2012 for $53m. The same year, he was granted permission to buy a 28ha property in Waitakere for $5m, stating that he intended to reside in New Zealand indefinitely. According to its website, NDG is a substantial company with total assets worth NZ$1 billion, and interests in real estate, hotels, wood products, storage and investment. http://www.stuff.co.nz/business/industries/9722702/Skyscraper-developer-owns-Shanghai-Hotel .