Despite ex-Rich Lister George Kerr, the effective 70% owner of Queenstown’s Homestead Bay, having been bankrupted in London last week and facing possible bankruptcy in Auckland this week, the 2800-home fast-tracked subdivision apparently will not be derailed. RCL Group chief executive David Wightman — whose company also developed the southern corridor’s Hanley’s Farm — says “our projects are all independently-funded, they’ve always been independently-funded”. “So it makes no difference whatsoever to us what happens with shareholders’ financial position and various shareholders. “We’ve had headlines in the past, and at the end of the day we’ve developed Hanley’s Farm, and now we’re developing Homestead Bay, and nothing’s going to change.” Kerr was bankrupted in the High Court of Justice in England over a debt owed to a former business partner. And he’s now facing a bankruptcy application by the BNZ which is owed about $100 million. Meanwhile, Wightman confirms they have sold about 230 sections to date in the first ‘super stage’, with another release due in about six weeks. “We’ve got financing in place and we’ve obviously started the earthworks and civil works programmes will be starting soon and things like that, so, yep, all systems go.” He is expecting titles for the first sections by the end of next year. Wightman says he is very happy with sales. “I mean, much like Hanley’s Farm, our view and our approach has been to bring supply to the market, we’re not sort of chasing every last possible dollar. “It’s about getting a good volume of pre-sales so we can actually get a community up and established as quickly as possible. Local Bayleys agent Jimmy Allen says the average section price is about $600,000. In terms of the buyers they are the same as in Hanley’s, he adds. “We’ve certainly focused very strongly, excluding, obviously, the show home sites for builders, on providing sections to people at an affordable price for the people that need them.” In February, Homestead Bay — earmarked for 2800 homes and a commercial retail precinct — became the first local project to be fast-tracked, and the 10th nationally. “The project is estimated to contribute $720.3m to GDP and support around 4420 jobs during construction,” Infrastructure Minister Chris Bishop said at the time. “This development of thousands of houses will make a real difference in Queenstown, where demand for housing is high.” “The development has also been designed to minimise pressure on existing infrastructure. “The [expert] panel found the project’s infrastructure approach, including independent wastewater systems, was adequate, and could in future integrate with the council’s wastewater network.” On concerns Homestead Bay will further fuel traffic congestion, which has become pretty acute in the southern corridor, of late, Wightman says “we’re fully aware of that, and I suspect we’ll have some announcements in the future about that. It will hopefully be well received”. “Just watch this space.” scoop@scene.co.nz
