Auckland Housing Programme Building at scale and pace Housing New - PowerPoint PPT Presentation

Auckland Housing Programme Building at scale and pace

Housing New Zealand’s Role John Duncan Deputy Chair, Housing New Zealand

Who are we?  House about 180,000 Kiwis  Around 1030 staff work for us  Own about 60,620 properties  Manage in total: 63,270 homes  Property portfolio worth $22.7b  Annual revenue of $1.3b  Expenses of around $1.2b

Housing NZ - Our Role  Providing social houses for those in need, for the duration of their need  Show leadership in the social housing market  Contribute to the affordability, accessibility of housing for all Kiwis  Increase supply of emergency and transitional housing  Meet Government directive to increase supply of social housing and housing supply overall by redeveloping existing properties

Boosting development pace & scale  HNZ is the largest residential land owner in the country  Building on our land to increase pace and scale of housing supply  Capacity for about 30,000 new units incl. 8,500 potential building sites in Auckland  Over 2,000 social houses to be delivered annually in NZ  Replacing aged housing stock with modern homes  Freeing up land for market affordable housing

The Development Opportunity Andrew McKenzie Chief Executive, Housing New Zealand

Today’s programme  The development opportunity  Large-scale renewal projects  Asset development pipeline  Opportunities to partner  Construction innovations  Sourcing product & supply chain management

AHP & Asset Management Strategy  Auckland specific programme  Aligned to our AMS  75% of our stock across NZ to be renewed within the next 20 years  Warm, safe social homes  Increase supply of land to market  Affordable housing

AHP is underway  Renewal and redevelopment programmes approved  Financing agreed  Planning, phasing and some building commenced Visit http://www.hnzc.co.nz/housing- developments-and- programmes/auckland-housing- programme/ to view all AHP projects by suburb.

Pipeline over two decades  Large building and renewal volumes every year for a 20-year period  First 10 years: - Almost 11,000 social homes - Land for more than 12,600 homes to market

Large Auckland redevelopments HLC Housing NZ Undertake large-scale master-planning, Look for opportunities to transform land development and land sales existing neighbourhoods  Identify sites for social Enable delivery of market & affordable housing development  homes via the sale of redevelopment Set social housing growth, renewal land/creation of superlots and reconfiguration requirements  Build all social housing Apply good urban design and Deliver fit-for-purpose social homes, improve connections and amenity including mixed tenure projects Undertake local place-making, Lead all tenant rehousing communications and engagement and tenant related activity

Large-Scale Redevelopment Masterplanning & Civil Construction Chris Aiken Chief Executive, HLC

HLC  Boosting development pace and scale on Large Scale Auckland location projects  The HLC/HNZ partnership is the largest land developer in Auckland  HLC regeneration project on HNZ land to increase scale, pace and reduce home delivery costs  Land retained for: - social housing programme  Land sold for - affordable housing programme - market housing

What’s being delivered Volumes Area (m 2 ) 4 million Standard 400 superlots Values Civil works Professional fees Infrastructure

What’s being delivered Volumes Area (m 2 ) 4 million Standard 400 superlots Values Civil works > $1 billion Professional $218 million fees Infrastructure $146 million

Learnings from Hobsonville Point Leveraging the Market  Design discipline adds value to market homes and land - Design review guidelines  Deliver diversified product to a diversified market = higher returns + resilient communities  More choice - Range of typologies and prices  Creating a place, developing community  Front loading infrastructure  Scale and pace is achievable  Procurement partnerships deliver consistent results

Brownfield vs Greenfield Development  Importance of design principles and placement of housing  Phased development so that no homes sit empty  Activating stakeholder communications and principles for engagement

on HNZC land – The role of HLC Large scale regeneration projects Land Acquisition HNZC HNZ Tenant Management HLC Master Plan Alignment Delivery and Project Monitoring HLC as Civils Developer in Alliance Partnership Master Planning Key responsibility party Planning Consenting & Delivery Agreement Infrastructure Delivery Land Sub-div./Civil (Super Block) HLC Planning for Market HLC accountability Affordable Houses HNZC HNZC Builds Social Houses HLC Market & Sell Superlots HLC/HNZ Community Development

Ready-to-build Superlots  Masterplanned  Planning, consenting and delivery agreement  Infrastructure delivery  Land subdivision/civils  Planning for market/affordable homes  Market and sell superlots and manage builders

HLC Delivery Approach  Innovative approaches vs business as usual  Price based costing vs cost plus pricing  Technology to simplify processes  Improved consultant performance  Alliance style commercial arrangements

Asset Development Pipeline Opportunities to Partner Patrick Dougherty GM Asset Development, Housing New Zealand

How will we deliver?  Ongoing focus on quality, cost, speed and health & safety  Developing standard designs for new homes  Leveraging our scale  Mapping down to the nail what/how many components needed for AHP

Two-phase approach to delivery Building the runway (to June 2020)  Build social housing capacity to enable large-scale delivery  Signalling change to market  Focus on cost, speed, quality, health, safety and suppliers  Includes expenditure and demolitions for Phase Two Taking flight (to June 2027)  Long-term response to increase housing supply

Our Auckland pipeline

Procurement - recently contracted projects & opportunities HNZ - a low risk partner with a multi-year pipeline of work across all residential typologies for the next decade (minimum). In financial year 2016/17 undertook 150+ tenders for 1800+ residential units , including super lot sales; volume to escalate with increased number of multi-storey developments and multi-typology projects in the pipeline. Sample of future opportunities  New Lynn – 40 units  Waterview – 121 dwellings  New Lynn – 29 units

Current developments – a sample

From three old duplexes on a 3500sqm Waterview Site …

… to 17 homes ranging from two to four bedrooms

From three homes on Ryburn Road , Mt Wellington…

…to 13 homes ranging from two to four-bedrooms

Now an emphasis on apartments Galway St, Onehunga (4965m 2 ) Past: 34 x two and three bedroom units built in 1998 Planned: 71 units: 52 x one bedroom, 19 x two bedroom across four levels

Building the future together  There is a huge job to do – especially in Auckland  We are making it easier to work with us  We have the redevelopment pipeline, programmed, funded and government backed  You have the product and services expertise and capacity  Together we can meet the challenge Visit https://www.tenderlink.com/hnzc/ to view all current tenders Or email Patrick.Dougherty@hnzc.co.nz for more information

Building the future together

Opportunities to Innovate Sourcing Product & Supply Chain Management Andrew Booker GM Business Innovation & Development, Housing New Zealand

Innovation and piloting R&D  Looking at methods to build quicker over next 3 years and further out  Developing strategic partnerships to get economies of scale  Revising procurement strategy to leverage buying power  Keeping one eye to the future for emerging technologies

Investigating modular to get scale  Recent rapid advancement of these construction techniques  Attractive due to advances in speed of delivery and safety  Established modular panel  Establishing criteria to determine projects that would be a good fit  Series of pilot projects possible

Opportunities to investigate  Quantifying capacity of NZ market  Exploring links to global supply chain will cut time and costs & lever innovation  Other markets offer innovative building technologies  Offshore partnerships pursued in conjunction with our valued domestic relationships

Sourcing product & supply chain  Add integrated supply chain management model to our stable of procurement methods  Ensuring quality control in place to ensure NZ standards and expectations are met  Systems for managing supply chain without first-hand oversight  Actively seeking specialist advice from experienced legal and supply chain consultants

Panel Discussion