Auckland Housing Programme - Building at scale and pace - Infrastructure New Zealand

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 (m2)            4 million
Standard
                     400
superlots
                 Values

Civil works
Professional
fees
Infrastructure

What’s being delivered

                 Volumes

Area (m2)            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

Land Acquisition

                                                                                       HNZC
                                                                                                                                             HNZ Tenant
                                                                                                                                             Management

                                                                                                                                           Master Planning

                                                                                                                                         Planning Consenting
                                                                                                                                         & Delivery Agreement

                                                                                                                                         Infrastructure Delivery

Key responsibility party
                                                                                                                                          Land Sub-div./Civil
                                                                                                                                            (Super Block)
                                                                                       HLC as Civils Developer in Alliance Partnership

                                                                                                                                          Planning for Market
                                                                                        HLC

                                                                                                                                          Affordable Houses

                                                                                                                                            HNZC Builds
                                                                                                                                            Social Houses
                                                                                       HNZC

HLC accountability
                           HLC Master Plan Alignment Delivery and Project Monitoring
                                                                                                                                                                   on HNZC land – The role of HLC

                                                                                                                                             Market & Sell
                                                                                       HLC

                                                                                                                                              Superlots
                                                                                                                                                                   Large scale regeneration projects

                                                                                                                                              Community
                                                                                                                                             Development
                                                                                       HLC/HNZ

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