Big tick for big-ticket project
The contentious billion-dollar, 10-year office, retail, hotel, and residential development on Queenstown’s lake shores – Lakeview – has jumped another hurdle, being granted approval from the Overseas Investment Office.
Property management company, Augusta Capital, a 25 per cent partner in the development through a subsidiary, announced that the partners in the QT Lakeview Partnership had obtained OIO approval for the development agreement with the Queenstown Lakes District Council. That makes the development agreement unconditional.
Alluding to the damage wrought by Covid-19 on Queenstown’s tourism industry, Augusta said, ‘‘All expenditure is being closely monitored by the partnership given the current position of the Queenstown market and economy.’’
The 10-hectare development site includes the resort town’s camping ground and cabins. The latter was home to many migrant workers until they were evicted last year to make way for the development.
The development agreement with the council was announced in
October 2019. The site on the shores of Lake Wakatipu will extend Queenstown’s constrained CBD.
Melbourne-based property developer and constructor Ninety Four Feet holds a 75 per cent partnership interest.
Ninety Four Feet was continuing to proactively manage the initial phases of the development, Augusta said.
The partnership intends to develop residential, hotels, coworking, co-living, hospitality, and retail options, with construction estimated to take more than 10 years and phased over seven stages.
In late May, Augusta said it had made a $14 million commitment to the partnership. Stage one was due to complete in 2025. It is expecting to spend $2m to $3m on development in financial years 2021 and 2022, relating to its share of development costs over this period.