Billionaire’s $50m+ golf plan
In an exclusive interview, American investor tells Anne Gibson of his plan for two new golf courses north of Auckland
He’s already spent an estimated $100 million creating one of the world’s best golf courses in New Zealand. Now American billionaire Ric Kayne plans to spend a further $50m-plus developing two new public courses north of Auckland.
Kayne, working with Queenstownbased landscape architect John Darby of Darby Partners and worldclass golf course designer Tom Doak, developed the private links-style, invitation-only Tara Iti course near Mangawhai, 80 minutes north of Auckland. It’s the course where exPresident Barack Obama played last March with former PM John Key.
Now Kayne plans to build two new beachfront links-style courses on land adjacent to and south of Tara Iti, on part of a 764 hectare block of land he wants state consent to lease for more than a century from the Nga¯ti Manuhiri iwi.
He proposes that 200ha goes to Auckland Council to extend existing reserve areas, having already gifted 200ha of land at Tara Iti as a reserve.
Kayne also plans to create visitor accommodation, a clubhouse, 60 new lots for homes, a public camping ground near the beach and a retail centre for food and surfing shops.
In a rare interview with the Herald, Kayne said, “the wider vision is now for the adjacent 700ha Mangawhai South Forest”.
“Nga¯ti Manuhiri is partnering with Kayne and Darby Partners on a similar development. The goal is to create a significant recreational, economic and environmental asset for Auckland and New Zealand.”
Mook Hohneck, chairman of the Nga¯ti Manuhiri Settlement Trust, confirms negotiations have begun for part of the 764ha the tribe bought as part of its Treaty settlement, but says part of that land has been sold and part is already reserve. “We’re discussing with Kayne to lease part of the land which the settlement trust owns, to fulfil the tribal aspirations, both commercial and cultural. We want to realise the potential for the land and because of our size and commercial capability we see it as advantageous to have secure relationships with strategic partners that are built on trust, honesty and goodwill,” says Hohneck. “To date, we have always had a good relationship with both Ric Kayne and John Darby.” Kayne says the area would be turned into a “world golfing destination”, with the members-only Tara Iti to the north and the two new 18-hole public courses to the south, all along a strip of golden sand beach facing Little Barrier Island [Te Hauturu-oToi] and the Hen and Chicken Islands [two main islands, Marotere and Taranga].
Kayne says he had no profit motive in developing Tara Iti but he does plan to make the next stage pay. “We will make a dollar from the operation of the golf club with visitors.”
But first, the New Zealand resident non-citizen must get Overseas Investment Office consent to lease the land and Auckland Council consents to develop the courses and create the house lots. Under the Unitary Plan, golfing is a permitted activity for the sites, he says.
However, conservationists have complained about many aspects of Tara Iti, including a sturdy eight-wire fence that creates a barrier to public open space near the new house Kayne is building, and the damming of Te Arai Stream.
Reg Whale, vice-president of the Te Arai Beach Preservation Society, is concerned about the two-course expansion plan: “I’d be worried where he will get his water from because I believe they’re all struggling to keep Tara Iti green.”
In response, Kayne says the Department of Conservation asked for the fence to protect reserve land and the stream was already dammed before he became involved. However, he plans a new bridge across the stream which he believes will resolve issues. He says water for the two new courses will come from the same sources as at Tara Iti: newly created catchment ponds and bores.
Conservation Minister Eugenie Sage says she “wouldn’t comment on an application until a decision is made”. Auckland Council this week said it was yet to receive any applications from Kayne or Darby for the twin-course projects.
One passionate Auckland golfer who plays Tara Iti says: “Kayne should get all the backing that’s going. This guy’s not asking for any money. He’s getting older and wants to finish what he started to create a legacy.”
But Whale says Kayne’s “gift” of hundreds of hectares of reserves is a mandatory part of his application to offset negative environmental effects, so he’s not being generous.
Kayne’s original Overseas Investment Office application was for a $30m project at Tara Iti but it’s estimated that he spent at least three times that.
Kayne, aged around 74 and with an estimated US$1.3b, says the two new golf courses will be a major regional asset.
“We intend to create a treasure unlike any other place in the world,” Kayne said at Tara Iti on Monday, referring to the new courses being designed by world leaders Coore and Crenshaw, working with Tom Doak. “This is the best land in the world for golf courses. We have the land to do this and it’s a deep passion. I want to do something for New Zealand, Auckland, Mangawhai and Auckland golfers.”
All up, about 400ha of beachfront land between Pakiri and Mangawhai would become links-style courses, never boggy because they are built on sand, with the fescue grass courses irrigated by pop-up sprinklers.
Last year, ranked Tara