Business North Dec / Jan 2022

| 3 “This strategic partnership will sustain the waves of property cycles and help drive transformational change through the enablement of large-scale development.” Delivering developments - page 4 DEVELOPMENT Classic Group Partners to tackle housing shortage Karen Phelps Classic Group directors Peter Cooney, left, and Matt Lagerberg - teaming up with NZ Super Fund. Classic Group has just signed a $300 million dollar deal with the NZ Super Fund (NZSF) to tackle the housing shortage. The Kaha Ake Partnership sees Classic Group and NZSF come together to bring long-term financial support and experienced development capability to facilitate the creation of homes at pace and scale around New Zealand. NZSF has an 80% share in Kaha Ake and Classic Group owns the other 20%. Founder and director of Classic Group, Peter Cooney says that the partnership has the shared intention to enable transformational change within a sector challenged by a web of complex issues. “It’s about problem solving the challenges of the New Zealand property sector to improve the lives of New Zealanders,” he explains. “This strategic partnership will sustain the waves of property cycles and help drive transformational change through the enablement of large-scale development.” Kaha Ake means ‘strength’ and when the word ‘Ake’ is added it brings ‘wairua’ (emphasis/power/connection) to the word ‘strength’. Kaha Ake will present various councils and Government organisations with opportunities to not only build much-needed housing, but also solve infrastructure issues. Peter describes it as the ideal platform to explore the ‘super build’ concept. “The scale of new entity will allow it to enter into Private Public Partnerships on a more regular basis, which could help unlock land, along with the potential for public/social infrastructure, currently constrained by financial shortfalls.” He says that Kaha Ake hopes to explore ways to improve the future of the sector, through innovation, research and development. Social and environmental objectives will be a key focus of every Kaha Ake initiative. Classic Group was established in 1996 by Directors Peter Cooney and Matt Lagerberg and employs over 300 staff, with its headquarters located in Tauranga. It is an integrated portfolio of businesses with 25 years’ experience in the property sector. It is privately and locally owned and includes Classic Developments, one of the country’s largest land developers, and Classic Builders, one of New Zealand’s largest residential builders. Classic Developments’ has developed over 4000 lots to date and has a current land supply of over 3000 sections. Classic Builders has built over 6000 homes to date. The $58 billion NZ Super Fund is a global investment fund that was established by the New Zealand Government to help pre-fund universal superannuation. A long-term, growth-oriented investor, the fund has returned 10% p.a. since inception in 2003. It currently has more than $7 billion invested in New Zealand including significant stakes in Kaingaroa Timberlands, Datacom, Kiwibank, Fidelity Life and NZ Gourmet, as well as significant investment in a range of locally listed companies. Peter says that Kaha Ake will contribute to helping meet the demand for quality affordable housing in the regions with the first acquisition being a 37 hectare property in Warkworth South (Waimanawa), expected to enable the estimated build of 530 new homes, with more affordable price points being targeted. The development proposes 4ha of public open space, an extensive network of riparian (stream corridor) walkways, and 1ha for a village centre. Peter says that the process to this point was led by Kaha Ake with collaboration from other land owners with the area being part of a 100ha private plan change application expected to be lodged with Auckland Council in early 2022. The plan change process is estimated to take two years with land development commencing in 2024 and housing in 2025. Peter says that Classic Group is delighted to partner with NZSF and is looking forward to the momentum and progress it will have on the country’s property sector. “As an integrated and experienced business, Classic Group can confidently commit to this partnership and help deliver a future pipeline of housing supply for New Zealanders.” CIVIL CONSTRUCTION SPECIALISTS Proudly supporting Classic Developments & Bluehaven (07) 5420419 | | SUBDIVISIONS | DRAINLAYING | COMMERCIAL SITE WORKS EARTHWORKS | UTILITIES | PAVEMENTS AND CARPARKS