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,

land development and land sales

Look for opportunities to transform

existing neighbourhoods

Enable delivery of market & affordable

homes via the sale of redevelopment

land/creation of superlots

Identify sites for social

housing development

Set social housing growth, renewal

and reconfiguration requirements

Build all social housing

Apply good urban design and

improve connections and amenity

Deliver fit-for-purpose social homes,

including mixed tenure projects

Undertake local place-making,

communications and engagement

Lead all tenant rehousing

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 (m2) 4 million

Standard

superlots 400

Values

Civil works

Professional

fees

Infrastructure

What’s being delivered

Volumes

Area (m2) 4 million

Standard

superlots 400

Values

Civil works > $1 billion

Professional

fees $218 million

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

Large scale regeneration projects

on HNZC land – The role of HLC

Key responsibility party HLC accountability

HLC Master Plan Alignment Delivery and Project Monitoring

HLC as Civils Developer in Alliance Partnership

Maste

r P

lannin

g

Pla

nnin

g C

onsenting

& D

eliv

ery

Agre

em

ent

Infr

astr

uctu

re D

eliv

ery

Land S

ub-d

iv./C

ivil

(Super

Blo

ck)

HNZC

Land A

cquis

itio

n

HN

Z T

enant

Managem

ent

HLC

Pla

nnin

g f

or

Mark

et

Aff

ord

able

Houses

HNZC

HN

ZC

Build

s

Socia

l H

ouses

HLC

Mark

et &

Sell

Superlots

HLC/HNZ

Com

munity

Develo

pm

ent

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 (4965m2)

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