Queenstown’s red hot market
NZX-listed Pyne Gould Corporation is a very different entity from its former life as a Canterbury-based rural services company predominantly owned by blue blood shareholders from the region.
Nowadays, one of its main interests is a big sub division called Hanley Downs next to Jack’s Point golf resort a few kilometres from Queenstown.
The ownership is structured through PGC’s 44 per cent stake in Torchlight, which owns Australianbased residential land investor RCL, the developer of Hanley Downs.
It has been a long evolution for PGC whose name reflects the company’s old rural legacy - the Goulds are a North Canterbury farming family whose descendants remain active property developers and investors today.
In 1919 the Goulds teamed up with the Pyne family and made history as one of New Zealand’s largest stock and station companies, including finance services.
Things changed a few years ago when largest shareholder George Kerr took control and recapitalised the ailing PGC, through his Torchlight Fund much to the chagrin of diluted long-time Canterbury shareholders who made their displeasure clear at annual meetings until a couple of years ago.
He spun off the finance operations into a separate company, Heartland.
Kerr’s interests now control more than 80 per cent of PGC’s shares and the company’s focus is largely on property.
Last year’s annual meeting was held at Queenstown, reflecting the new focus of the company which is now registered in Guernsey.
Hanley Downs was rezoned near the end of 2016 and the first three stages released to the market last year.
So far 175 sections have been sold off the plans in recent months as the roading has been constructed, with first home building expected to begin soon.
Prices of sections that range in
"A waiting list is forming for some of the nearly 2000 sections yet to be sold"
size from about 400 square metres to 600 sqm have varied between $200,000 and $300,000.
The sale process at Hanley Downs mirrors some other large subdivisions where buyers must submit a reservation deposit.
On a designated sale day the sections were sold in the order of priority of those who registered, which means there was no guarantee purchasers would secure their initial choice of a particular section.
There are several conditions and covenants - buyers may purchase only one section, subdivision of sections is not allowed, and onselling of sections is ‘‘strictly prohibited’’ without the developer’s permission.
Other covenants cover landscaping and design of homes.
A waiting list is forming for the nearly 2000 sections yet to be sold, according to marketers, Bayleys.
Some of the area is still subject to an Environment Court appeal over zoning.
The main objector is Scope Resources, owner of 112 hectares next to Hanley Downs.
Scope argues there are reverse sensitivity issues if there is intensive development, but its submissions said it was not a trade competitor.