Joint venture on Cromwell development

Cromwell is under pressure from housing demand.
Cromwell is under pressure from housing demand.
The Cromwell Community Board has  entered into a joint venture with a property developer to develop a 78-lot subdivision in the town, which is under pressure from housing demand.

The joint venture is believe the first of its kind for the Central Otago District Council, to which the community board belongs, and will be followed by a similar project in Alexandra with the Vincent Community Board.

In Cromwell, the board has sold a 3.5ha lot on Gair Ave, to a developer who successfully tendered for the land.

Under the deal the board will retain 50% profit from the development of the site.

Cromwell Community Board Chair Neil Gillespie said the board decided it was an opportunity to partner with a developer so the community that owned the land would benefit more from the development and sale of the stage.

The board had also worked with the developer so a variety of section sizes were available and minimum price levels were in place.

“In simple terms we think that this subdivision will provide options that the market is reportedly seeking. Our ratepayers benefit by the Board sharing the profit with the developer,” Mr Gillespie said.

Ten  of the 78 sections, which would be actively marketed later this month, already had sale contracts soon to be signed.

The pre-sales assisted in covering development costs, Mr Gillespie said.

Last month, the Vincent Community Board in Alexandra agreed to enter into a similar venture with 6.5ha it owns north of the Molyneux Park netball courts for the development of up to 63 sections.

The project would be a joint venture along the same lines as the Gair Ave one.

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