US tycoon seeks bolthole for sections

A United States investor backing a high-end South Island housing development is leveraging the project to gain New Zealand residency.

Texan businessman Trammell S. Crow and Kiwi Chris White are planning a 34-lot luxury housing development dubbed Merino Downs near Twizel, in the Mackenzie Basin, about 160 kilometres inland from Timaru.

Sotheby’s real estate agent Matt Finnigan said the development, located on Old Glen Lyon Rd behind Twizel, had bare sections between 5000 square metres and

6000sqm selling for between

$375,000 and $435,000.

A show home being built at the development, which was indicative of houses to be built on the sections, would cost between $1.2 million and $1.5m to build, he said.

Eight sections were already sold or under contract, he said. ‘‘We’re certainly breaking new ground here in Twizel for prices.’’

Crow, son of US real estate developer Fred Trammell Crow, told the Dallas News this week his investment in the New Zealand project would also give him permanent residency.

‘‘And while he doesn’t plan to relocate, he plans to gradually spend more time there,’’ the news report said.

Crow told the Dallas News: ‘‘I wasn’t hunting for a new real estate development in a far-flung country to mess with. But I have been thinking for a long time where to go if things become difficult in America – not really just for

"I have been thinking for a long time where to go if things become difficult in America." Trammell S. Crow, quoted in the Dallas News

social unrest but because environmental concerns.’’

White said Crow had been approved residency in principle by Immigration New Zealand (INZ).

‘‘In years to come and when possible via the INZ requirements he’d like to be a citizen.’’

Wealthy investors are able to get New Zealand residency under a of special visa called Investor1. If they have $10m to invest here over a three-year period, they can apply for residency as long as they plan to spend time in New Zealand.

White, who lived in Dallas for a number of years, said he and Crow were spending a lot of money to ‘‘come into the community and do a good thing’’.

White has more than 15 years’ experience in the US capital markets industry. He is a founding partner of Greenstone Value Opportunity Fund, a US-based hedge fund focused on value and distressed investments.

The New Zealand Companies Office register shows Crow is the sole shareholder of Pounamu Strategic Holdings, of which White is a director. The company was an equity investor in the project, White said.

The businessmen had tried to take an ‘‘extremely collaborative approach’’ with locals in delivering the new residential sections, he said.

‘‘We are both cognisant that perhaps other foreigners have not done a great job of integrating themselves with the local community, so in that respects we’ve tried to form well-meaning relations up front.’’

White said he planned to own a home in Merino Downs.

Merino Downs is fully consented and will feature a 1.6-hectare common area, a grand stone entranceway, post and rail fencing and an extensive planting regime.

It has views of the Ben Ohau Station and is located near four large lakes: Lake Ruataniwha, Lake Pukaki, Lake Ohau, and Lake Benmore.