Xanadu sales clinched for over-50s tower

The promoters of a baby boomers’ apartment development in Auckland have already clinched some sales.

Xanadu is the brainchild of Virgil Roberts of Fresh Realty, who has been involved in several property projects in Auckland over the past 20 years. The developer is Jupiter Developments, which is owned by Mike Gibbon and Jason Smith. The company has an option to buy the site at 37-47 Union St near the top of Nelson St and will settle the purchase in coming weeks if pre-sales interest justifies going ahead.

The vendor is the BT Hall family trust which acquired it in mid-2008 for $1.4 million. There are some old industrial buildings on site.

They will also seek resource consents in coming weeks. Construction will probably take a couple of years.

The notion of an apartment development exclusively for baby boomers has excited comment and questions about whether such covenants breach human rights legislation.

But Mr Roberts says there is no legal issue. Other housing providers such as Housing NZ provide over-50s accommodation and marketing of over-60s units is common around the country.

In any case, there will be flexibility. Under-50s will be permitted to stay for three months and people may buy on behalf of parents or with older partners.

However, facilities on the ground such as a business lounge, house bar, etc, were aimed at baby boomer professionals, many of whom Mr Roberts expects will continue working for 20 years. 

Mr Roberts says the “Club Life” concept has been via seminars to potential buyers for several months before the recent launch of the main marketing campaign.

NBR NZPI reported last August on the “totally new” concept, which is now approaching fruition. At that time he would not reveal the location of the 195 freehold-titled apartment building.

Other features of the development include 300 secure car parks, at least one large basement storage unit for each apartment, ground floor facilities all owned by the apartment owners, body corporate fees “averaging under $7000 per year with increases guided by CPI.” The body corporate fees Include all staff and building management costs. 

The average price is $845,000, ranging from $516,000 to more than $1.5 million including the garaging storage unit. A 10% deposit is payable to the vendor’s solicitor trust account, with the balance to be paid on completion in 2016.

Mr Roberts was involved in the initial marketing of the SugarTree apartments between Union and Nelson Sts.

But he says the marketing for SugarTree has been targeted at offshore Asian buyers and he preferred to be involved in seeking local buyers for Xanadu.

He described Xanadu as a “very bankable proposition.”

Meanwhile, the second stage of the $250 million SugarTree apartment development in central Auckland was launched before Christmas. It took place as construction began on stage one on site.

SugarTree director Darryn Brown reported that 85% of the first stage of 148 apartments had been sold in conditional contracts.

Prices of the apartments equate to $7000/m2 whch he says is comparable to other apartments on the market at between $6000/m2 to $7000/m2.

SugarTree also touts a “new concept” offering community living, with landscaped green outdoor areas and vibrant commercial spaces including boutique bars, cafes and restaurants. It has a mix of workspaces and is close to two stations for the proposed light rail system. 

Construction on the first stage of the complex is expected to be complete by the end of 2014. 

If all three stages are completed, there will be a total of 580 one, two and three bedroom apartments. 

The developers of the project are Lily Nelson Limited Partnership, which is a 50/50 joint venture between a consortium of established Chinese investors and Nelson Union, local developers Wayne Allen and Darren Brown. ASB Bank is funding the building with second tier funding from Pearlfisher Capital whose director is Tony Abraham.