White Associates Department of Corrections Project

PROJECT SPOTLIGHT: Department of Corrections locks in White Associates

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White Associates are pleased to announce their appointment as the Department of Corrections’ Cost Advisor for their Prison Capacity Programme.

Konrad Trankels says:

“After a thorough tender process we have been engaged as cost consultants on the next Public Private Partnership (PPP) as well as the delivery of a new building, Building C, at Mount Eden Correctional Facility.

We are thrilled with the decision and look forward to working with the Department to meet their objectives, requirements and desired outcomes. Having been involved on both previous Department of Corrections’ PPPs (at Auckland South Corrections Facility and Auckland Prison) we’re well placed to do that.”

New Zealand’s prison population is soaring and in the last two years has increased at a rate considerably higher than what had been forecast. Consequently, there is significant pressure on prisoner accommodation which has required the government to increase its prison funding. Finance Minister Bill English recently said that our climbing prison population is as big a risk to our economy as world interest rates.

Accordingly, the Department of Corrections is investing in a number of medium and long term options to meet capacity and service requirements. Jeremy Lightfoot, Corrections National Commissioner says:

“We’re pleased to have White Associates supporting us throughout this process”

Konrad says:

“We look forward to working with the Department to ensure that services are delivered in an integrated, timely and cost effective manner in accordance with the programme time frames. Our work with the Department has already begun and is expected to continue over the coming years.”

 

White Associates Project: Transocean Business Park

PROJECT SPOTLIGHT: Transocean Business Park, Christchurch

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Project confidence and partnership for new Transocean Business Park in Christchurch

The Transocean Business Park in central Sockburn has a mix of office, showroom and warehouse units. Being situated just 7.5km from the Christchurch Airport, and 6km from the city centre, means the location and quality of the park are enviable. Developed for investors, or owner-operators, the park has created new supply for a market that is hungry for new developments.

A trusted partner to drive project confidence 

Transocean was put in touch with White Associates through its bank, ANZ, which required Transocean to retain the services of an independent quantity surveyor to oversee and audit the drawdown of construction funding during the construction phase of the project.

Transocean Developments Director Jon Howard says:

“The White Associates team and service ensured that ANZ was confident that the project was on track and on budget over the drawdown period.”

And it is not just bank funding, drawdowns and claims valuations that White Associates has facilitated for Transocean.

“White Associates have been the consummate professionals and the team really understands the construction business. Darin and Andrew have been responsive to any issues that have arisen throughout the project, which made them a great partner to have on board”

Darin Bayer, White Associates Director, says the high-quality design of the Transocean property is one of its strengths, as it has fantastic street appeal:

“The property has more sizzle than your standard industrial units, which puts it ahead of other facilities like it; ample parking and the final quality are also great features.”

Competitive pricing characterises Christchurch industrial market

Darin says at present, there is a shortage of larger scale developments commencing in Christchurch, therefore some contractors in the market – especially the mid-tier contractors – will provide reasonably competitive pricing in the near future.

Jon says there’s been a noticeable slowdown in the local industrial market, but that has only created more opportunity and demand for the new development.

“The wider Christchurch market for new industrial office and warehouse products has markedly slowed over the past six months. However, given its excellent location, distinctive design and quality of construction, the demand for both the sale and lease of units in the Transocean development has been strong.”

What’s next for Transocean?

With the project now effectively finished, with some of the units settled and one already occupied, the next step for the Transocean development is the marketing of the final remaining units, and then on to new opportunities.

Jon says Transocean’s next development is a 17,600 m2 greenfield industrial development located in the fast-emerging Belfast area, located to the north of Christchurch.

“We are also investigating opportunities including commercial and residential apartments in central Christchurch, so we’re looking forward to creating new developments in the region in the coming months and years.”

White Associates is looking forward to working on future projects with the Transocean Developments team, and architect David Snell from SHL Architecture. Find out more about the Transocean Business Park here.

Project team:

Darin Bayer and Andrew Newlands led the White Associates team for the Transocean property project. Darin constantly completed site visits, which meant high levels of communication with the client at all times throughout the project.

White Associates services:

White Associates enabled the funding process for the new facility to work smoothly. In addition, we provided assistance in valuing the contractors’ claims on the project.

Second Stage of Alexandra Park Apartments kicks off

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This week, the second stage of Alexandra Park’s urban village development will commence, with the Auckland Trotting Club set to turn the first sod on Thursday 28 April, according to The Bob Dey Property Report.

The second stage of the highly-anticipated development, which we have been closely involved with, will see 2500m² of ground-floor retail space created, along with a further 128 apartments. Building B1 will rise nine storeys high, while building B2 will be five storeys high, with a two-level basement carpark underneath.

Sydney-based construction firm Ganellen Construction Ltd will be working on the second stage of the project, with Local Director, Michael Doig, saying Alexandra Park is more in line with the type of largescale residential projects the firm has built its reputation on back in Sydney.

The Auckland Trotting Club made the decision to transform the carpark site at 223 Green Lane West into a mixed-use precinct back in 2014, with the project set to cost a total of $205 million.

Once complete, the Alexandra Park urban village will feature 246 freehold apartments and almost 20 retail spaces that span across three towers.

White Associates is proud to have been involved in this ground-breaking project from its inception in mid-2014, providing a range of cost management and delivery services, such as:

  • Pre and post-contract services
  • Cost managing the design throughout the design phase, ensuring that tenders were received within budget
  • Completing a thorough tender analysis process
  • Currently providing cost management services in the construction phase.

The apartments at the urban village have been hot in demand. CEO of Auckland Trotting Club, Dominique Dowding, says:

“The fact that we’ve had such strong demand from owner-occupiers is reflective of the size, high specification, and location of the Park. We are creating a true urban village. This is a private, gated community, with a central location and picturesque Cornwall Park right across the road.”

For more information about the Alexandra Park Apartments, click here to read our recent case study.

Spotlight on Alexandra Park Apartments

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 A thoroughbred team for the Alexandra Park Apartments development

The development of the Alexandra Park Apartments is an exciting sign of the possibilities and innovations in building design for Auckland’s booming residential apartment market.

Spread across 32,000 sqm, the development sits on the club’s former Green Lane West carpark and overlooks the iconic Alexandra Park horse racing track. Once complete, Alexandra Park Apartments will feature three towers with 246 freehold apartments, close to 20 retail spaces, and a number of design features including public spaces, promenades and a central open plaza.

White Associates has been involved in the development of the Alexandra Park Apartments since its inception in mid-2014, and the team continues to be a key partner in the project’s cost management and delivery.

Zoë Bashforth, White Associates Principal and project leader, says working on Alexandra Park is an opportunity to be involved with a new destination development, and allows the White Associates team to apply its fresh approach to cost management and exceptional project outcomes.

Project team:

Led by Zoë Bashforth, the Alexandra Park Apartments team includes Graham White, Konrad Trankels, Darin Bayer, Andrew Newlands and Muriel Gondipon.

White Associates services for Alexandra Park Apartments Buildings A & B include:

  • Provided pre and post-contract services for the two buildings
  • Cost managed the design throughout the design phase, ensuring that tenders were received within budget
  • Completed a thorough tender analysis process
  • Currently providing cost management services in the construction phase. 

Dominique Dowding, CEO of Auckland Trotting Club, on how White Associates is adding value to the development:

“I was brought on-board in late 2012 and my first task was to review the Park’s portfolio. There was no master plan in place at the time, and we had already been given the title for 223 Greenlane Road, so when I considered my objectives which were to inject new life into the Park, to attract a new audience, and to tidy up our frontage, it wasn’t long before I went to my go-to discipline: property development.

From day one, Konrad and Graham helped me to focus on the likely costs in the initial stages, prior to the design process getting underway. Having that advice and input early on provided me with the information and confidence I needed to form the feasibility study, which was instrumental in me gaining support from the Trotting Club’s members – which was a critical component of the development’s progression.”

Dominique says her strategy was to create a destination-style urban village, and when the project went to the detailed master plan stage and subsequent design, White Associates became even more heavily involved.

“The White Associates team are extremely thorough, bringing a pragmatic and conservative view to every project. They are a highly collaborative team, without being a ‘walk over’, which is an important attribute to bring to the team, as pricing can make or break a commercial deal.”

 

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Exceptional sales demand underpins APA’s commercial success

Demand for the Alexandra Park Apartments has been exceptionally strong, with over 75% of units in Building A sold down, and close to 40% for Building B which was released to the market more recently.

Dominique says that overall buyers have been predominantly owner-occupiers (80%), with some investor interest (20%) in the units in the second pricing tier.

“The fact that we’ve had such strong demand from owner-occupiers is reflective of the size, high specification, and location of the Park. We are creating a true urban village. This is a private, gated community, with a central location and picturesque Cornwall Park right across the road.”

Dominique says 48% of buyers so far live within a 5km radius of the Park, and a further 23% live within 5-10km.

“Our buyers are people who love the area and are ready to move into an exciting new environment, but with all the comforts of the community they already know and love. So far, buyers are typically within the 40 – 59 year old age group, so these are discerning, social people who want to get out and enjoy the best of life, and make the most of what’s right on their doorstep.”

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A fresh approach to Alexandra Park Apartments

Zoë says White Associates provides a fresh approach to construction cost management, with high levels of client service.

“Our cost planning service for the Alexandra Park project has been of unequivocal quality, providing a level of accuracy to the client that allowed sound decisions to be made over design choices in a timely manner. A measure of success for our cost plans is that tenders are received within budget and that a contract is awarded within budget. To this end the cost planning for the projects at Alexandra Park has been very successful.”

Zoë says the development’s unique location and unfailing attention to detail and specification makes it a stand out offer in the market:

“The Alexandra Park development is a destination in its own right, combining high quality apartments and townhouses with luxurious retail and dining facilities, creating a lifestyle which is completely unique in Auckland.

The location means that the development appeals to a diverse range of people as it is only a short commute into the CBD and is also situated in Epsom’s double Grammar school zone. The thrilling ambience of the racecourse is undoubtedly the USP for the development.”

Market conditions create more pressure for projects to stack up

The pricing pressures faced by the construction and development industry are no secret. From skilled labour shortages to rises in material costs, there are some challenges for developers even in the face of incredible demand for residential properties.

Zoë says, “We are commonly finding that the biggest challenge faced by many developers at the moment is the volatility in the sub-contractor market, a consequence of the current construction boom we are experiencing and the spin-off effect of increased costs. This is in turn creating more pressure for developments to stack up financially.”

That’s why now, more than ever, developers and contractors need straight up, pragmatic professional support to make sound financial decisions.

 Learn more about this exciting development at www.apliving.co.nz 

White Associates Bank Fundting Team - Victoria Residences

Bank Funding Spotlight on Victoria Residences

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A stunning new 25-level development in the heart of Auckland’s CBD, Victoria Residences, developed by Conrad Properties Group, represents the future of distinguished, high-density, metropolitan living.

Located directly across the road from the iconic Skytower, Victoria Residences offer unparalleled design, convenience and location. The building consists of 161 residences and also offers a high-level of amenity, with an indoor swimming pool and gym for residents, and 9 retail units on the ground level.

Construction for the project is already underway, and 92% of residences are already under contract despite only being on the market for 6 months.

White Associates’ have worked closely with BNZ and Conrad Properties on Victoria Residences, conducting due diligence on the project, and ensuring BNZ was comfortable to fund it. Now that construction has begun, White Associates is responsible for monitoring the project key deliverables.

Darin Bayer on Victoria Residences:

It is fantastic to be involved with this high-profile, well-thought out project right from the start. This is the fourth project we’ve worked on with Conrad Properties, and it’s a privilege to be involved with such high-quality, well-designed developments.

We provide value to our clients and to the bank, by providing rigour, expertise and a fresh perspective to projects.

For a highly experienced developer like Conrad Properties, the ability to call on White Associates for a rigorous peer review on Feasibility Reports, Sale and Purchase Agreements, Lease Agreements and budgets, means there’s a high-level of confidence instilled in the project that our clients really appreciate.

Expert eyes know where to look

With our combined experience, we know where to look and we know the cost implications and issues that might arise at settlement time. With these large construction contracts there’s a lot less room for ambiguity.

Our specialist bank funding team has a practical knowledge base, ranging from engineering through to the building trades, and our new team structure means we have the capacity and resources to ensure the right levels of expertise are applied to the project.

For every construction project, time is the critical element. Many projects will secure bank funding in principle, but until there’s a QS report from a reputable consultancy, the money stays with the lender. That’s a pretty compelling reason for any major project owner to engage with a proactive and highly experienced bank funding QS!

The strong demand for apartments within Victoria Residences highlights the opportunities at hand for astute developers like Conrad Properties, who are quick to bring a quality product to market, while satisfying funders and setting their projects up for success from the outset.