The market has once again been extremely kind to Manson TCLM, the country’s largest private developer.
Buying, building, leasing, holding, selling and funding property has shown returns well above the normal, says Ted Manson, who heads up the family business with his sons Calum, Luke and Mac.
“Our focus remains on our core business of office developments and we see that market remaining strong for many years to come,” says Ted.
“There are many good corporates still occupying old, inefficient, low amenity premises that require new offices to provide a good-quality environment for their employees to attract and retain good staff.”
With some other construction companies struggling, Manson sees further opportunities, he says.
“The competition for building new commercial office buildings in Auckland has practically disappeared. Our people, business model, funding and systems are unique and practically impossible to replicate.”
Recent deals include the purchase of 136 Fanshawe St in Auckland for $30.74m. The site is in design stage for a green star commercial building.
Likewise, 155 Fanshawe St, bought in early 2017 for $23.27m is now under construction for a 17,000sq m building facing Victoria Park.
Manson is also building its own new head office in Parnell, along with another 11,000sq m office building just completed, and has resource consent for a 27,500sq m commercial office tower development on Albert St.
But it’s Ted Manson’s new direction of social housing development that is occupying his time, while his sons drive the existing business.
His four-year-old philanthropic Manson Foundation has dived in boots and all, building $160m of social housing including two Glen Eden 10-level projects, an 18-level central city tower, a $60m Avondale block, with potential new sites in New Lynn and Papatoetoe.
Manson says he’s reached the point in his life where he needs to contribute to the less fortunate.
“I used to think ‘if I can come up from a state house, anyone can’ but as you get older, you start to realise life is not fair. Not everyone can do it,” he told the NZ Herald.
The goal is to build more than 300 apartments by 2022 to help those who are struggling and give them a leg up for a better future, he said.
Although some residences will be sold privately to reduce some of the capital tied up and offset costs, Manson won’t make anything from the project.
“I’m making no money, I’m giving it away,” he said.
Manson can well afford to with his main company’s development capital returning at least 30% a year, driving the family’s net worth above $800 million this year.
The prolific development company also has a finance arm – NZ Mortgages & Securities – headed by James Kellow but, beyond social housing, it’s not about to move into the residential sector anytime soon.
“Not in any major way – we do see it as a good long-term investment option to provide diversification across our portfolio but not as a core development business model.”
Manson has donated significantly to his foundation as he turns his attention to philanthropy.
Photo: Paul Nathan