New Zealand seeks housing partners

The government of New Zealand has issued a request for proposals for private partners to develop and fund large housing developments on Crown land in Auckland

The Ministry of Business, Innovation and Employment (MBIE) is leading a programme of work to identify vacant and underutilised Crown-owned land in Auckland available for housing development, and to facilitate development as quickly as possible.

These developments will include social and affordable housing delivered by private partners under framework agreements, including an agreed profit margin and performance indicators.

MBIE wants to establish three panels of developers capable of delivering low, medium and high density housing developments. Land will be offered to the first ranked developer on each panel. However the government is only looking for developers that are capable of adding a minimum of 100 additional dwellings per year over and above their existing and planned pipeline.

The successful developers will be accountable for the full process, from delivering the fully funded design and construction work required to complete a turn-key housing development, to effectively and efficiently marketing and managing sales. The developer will bear the commercial risks associated with development and sale of dwellings.

The government's preference is to make no monetary contribution beyond providing the land but is prepared to consider financially supported trade-offs in the form of Crown capital expenditure incurred through deferred settlement of the land transfer at zero interest. To access this funding, the developer must be prepared to not obtain title to the land while still being bound to develop it.

Proposals are due by 6 November and the deadline for questions is 19 October. Respondents may form a consortium with others. For contact details click here.

For more on New Zealand's PPP plans click here to read an article by Stephen Selwood, chief executive, New Zealand Council for Infrastructure Development.