Billion-dollar Queenstown housing, hotel and retail development takes a step forward
/ Augusta News
A billion-dollar Queenstown mixed-use development has taken a step forward with the signing of a development agreement between the local council and New Zealand and Australian developers.
New Zealand developer Augusta Capital has announced that it and its Australian partner Ninety Four Feet had signed the legally binding agreement with the Queenstown Lakes District Council for the Lakeview site.
It is the former Queenstown camping ground on Man Street where many of the premiere resort town's migrant hospitality workers live and is the largest remaining development site in central Queenstown.
About 300 people living there were served eviction notices this year and most will have to be out by late October. The rents for cabins are much cheaper than other rental accommodation in Queenstown. Augusta said a significant portion of the development would remain as public land as parks and reserves and road.
The Augusta-Ninety Four Feet partnership was proposing to develop a range of residential housing, hotels, co-working and co-living facilities, and hospitality and retail buildings on the three hectare site.
The construction would take more than 10 years and be done in seven stages.
August would contribute 25 per cent in the partnership, up to $14 million to fund the first two stages. Ninety Four Feet would invest the balance. That equity was sufficient to fund the first two stages, Augusta said.
"Lakeview is a once in a lifetime opportunity in Queenstown which we are excited to be part of," Augusta founder and managing director Mark Francis said.
The development would be managed day to day by Melbourne-based Ninety Four Feet, a leading privately owned property development and construction group, Francis said.
Britomart Hospitality Group would organise and manage the future retail and hospitality parts of the development.
As part of the partnership terms, Augusta would have first option to acquire parts of the development for its proposed new tourism fund as well as an option over the co-living residential properties.
The development agreement was conditional on the partnership obtaining Overseas Investment Office (OIO) approval and settlement of each stage was subject to a number of conditions including having in place financing and construction contracts.
Settlement of stage 1 of the land was expected in May 2023 after the district council had completed subdivision and infrastructure works.
The development of Lakeview has been the subject of debate for more than a decade with the council first calling for expressions of interest to develop it in 2007 and then again in 2012.