What is property development?

Although we have ‘Apartments’ in our name, we presently specialise in residential subdivisions and development, building townhouses in the Auckland area.

We start with a piece of land of 800-1000m2, figure out the right thing to build for the area, get the plans drawn up and consented, get the construction funding in place and project manage the build and the sales, then we pay you an agreed price for the land and split the profit.

Property development in New Zealand is a dynamic and substantial industry, accounting for about 9% of GDP. Auckland is the largest city in New Zealand and a major economic hub for the country. With its growing population and resilient economy, property developers play a crucial role in shaping the city's urban landscape.

Notable property development projects have left a significant impact on Auckland's skyline. Remarkable examples include the Sky Tower, which not only serves as an iconic landmark but also houses a hotel, observation deck, and restaurants. In addition, the innovative Wynyard Quarter development has transformed the city's waterfront into a vibrant precinct featuring residential, recreational, and commercial spaces. Urban residential development also provides opportunities to make a positive contribution to the built environment. We are inspired by these six principles of How to Make an Attractive City:

1. Not too chaotic. Not too ordered.

2. Visible life.

3. Compact.

4. Orientation and mystery.

5. Scale.

6. Make it local.

How do we develop our townhouses?

We work closely with architects, urban planners, engineers, and other professionals to create sustainable and aesthetically pleasing developments that meet the needs of the community. We provide the option for you to be either a hands-on or a silent partner.

The city's strong demand for housing, driven by population growth and an influx of migrants, provides ample opportunities for developers to create diverse housing options. In recent years, urban regeneration projects have also gained momentum, revitalising older neighbourhoods and creating mixed-use developments that blend residential, commercial, and recreational spaces.

The Auckland Council plays a pivotal role in regulating property development in the city. Developers must adhere to the council's resource consent process, which ensures that developments are in line with the city's urban planning objectives and environmental sustainability goals. The council also sets specific rules and regulations regarding building codes, zoning restrictions, and infrastructure requirements.

We know these rules well and leverage them to maximise the outcomes from the development site. We know what needs to be done at each step of the process and provide regular and transparent reporting on progress.

We have worked with Gel Architects on a number of projects now, and of their many completed projects, you can see some in their residential portfolio.

What are the benefits of investing in a joint venture?

Entering into a joint venture (JV) has several potential benefits:

Maximized Returns: A pre-sales project can offer higher returns on investment (ROI) than buying property post-development. By entering at an early stage, investors stand to benefit from the project's entire appreciation cycle.

Leverage Expertise: If you're not familiar with property development, partnering in a JV allows you to leverage the knowledge and expertise of an experienced developer. This helps mitigate risks associated with project execution, regulatory compliance, and market trends.

Risk Diversification: In a JV, risk is shared among partners. If the project fails or underperforms, your financial loss is limited to your proportion of the investment.

Financial Efficiency: For landowners, contributing land to a JV usually doesn't require an additional cash investment. For those with capital, the JV partner can help secure a suitable site, negotiate a good deal, and conduct due diligence.

Unlocking Value: If you own a site that needs redevelopment, a JV with a capable developer can unlock its potential value. It can transform underutilized or distressed assets into profitable real estate projects.

Access to an Established Team: By joining a JV, you gain access to an established team with a track record of successful projects. This team can handle all aspects of the project, including design, construction, marketing, and sales.

Customised Structure: We adjust our template structure based on each joint venture partner’s needs. See the section ‘Joint Venture partnerships in property development’ for examples.

What are the benefits of investing in a pre-sales project?

Pre-sales can lower risks for various parties involved in a development project. Most, but not all, of our joint ventures seek 50% pre-sales prior to construction. This approach provides the following benefits:

Reduced Financial Risk for Construction Funders: Pre-sales can offer a guarantee of return for the funder, as a portion of the project is already sold before construction commences. This reduces the risk and can lead to lower interest rates on construction loans.

Greater Certainty for Buyers: Buyers of pre-sales often have a higher level of certainty regarding the project's completion because the project is partially funded by their purchase. This can result in less risk and increased buyer confidence.

Secured Borrowing for Joint Venture Partners: For a joint venture partner, the risk associated with borrowing is decreased because the loan secured by the land is covered by the funds from pre-sales. This can reduce financial stress and provide a more secure investment.

Joint Venture partnerships in property development

The initial joint venture step is to begin a conversation where we can understand your specific needs and we can recommend a way forward from there. The following are examples from joint venture partners we have worked with.

Some of our clients have a site that is in need of re-development, perhaps it does not meet healthy home standards, and this is preventing the owner from achieving a good sale in the market. Because we are developing the land, we take a view based on the development potential of the site. We bring the knowledge of an extended, established team who know how to work together, and we structure it in a way that usually does not require the joint venture partner to contribute any cash (they contribute the land into a joint venture company, with a secured loan back to the landowner).

Other clients have capital (sometimes cash, or perhaps equity in property) but don’t yet have a piece of land for development. In that case, we also help with finding a suitable site, negotiating a good deal, and performing due diligence. Once the site is secured, the joint venture progresses just like in the landowner scenario, with the land going into a joint venture company, to meet the needs of the funder.

In each of the scenarios above, the joint venture contract is adjusted to accommodate the structural needs, contributions and loans, the site specifics, and any other parameters we need to include to meet the needs of all parties.

Your next step is to book a no-obligation chat, we can do this by phone, or we can meet for coffee on us.