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Pacifecon Analysis Of Top-End Building & Construction Activity

Contributor:
Fuseworks Media
Fuseworks Media

There were only 23 new planned projects, with an individual floor value of $5 mill +, newly announced during Aug 2009 in New Zealand, with a larger representation than normal of new projects coming from the energy (gas & oil) and mining industry.

Some major developments as detailed here were reported by Pacifecon in August. Eight planned private sector projects in upper North Island and South Island combined are guesstimated (due to estimates of cost not being available) at over $100 mill between them, which is not a huge injection into the building sector. Thirteen private projects out to tender will exceed $315 mill in total expenditure. And the fifteen public sector developments just contracted amount to a total guesstimated (due to estimates of cost not being available) cost in excess of $280 mill.

These figures would indicate that while the building and construction sector has been weathered thus far on the back of previously planned work - there is concern at the low total dollar value of the work, especially in the private sector, in the pipeline for 2010.

Of the newly planned top-end projects in New Zealand, 15 are private and 6 are in the public sector.

Regionally, 4 of the 21 projects (3 private and 1 government) are located in upper North Island (down to Taupo). For the second month running lower North Island (below Taupo but including Gisborne) trumps on numbers of new projects - 14, of which 5 are government and South Island has 5 new top-end project reported.

Of the newly planned projects some are:

UPPER NORTH ISLAND

Papatoetoe Sport & Community Sports Facility: 2 Level, 2000sm building ($12 mill), including clubrooms, changing rooms, indoor cricket facilities etc. Work to start Jan 10. Duplicated with Tender Greymouth Petroleum: Waiting for Resource Consent for establishment & operation of a gas fired power facility to be completed 2010 ($5 mill). Kaipara Mills Development Ltd: Mixed use development [Helensville] that will have 150 residences, 20 commercial units, public market place & theatre, hotel & ancillary facilities including 20-30 apartments incorporated into hotel ($40-60 mill). Queens Wharf: Open, flexible ideas competition (Stage 1 & 2) has commenced for the development & transformation of Queens Wharf, Auckland. 5 designs and 3 teams will be selected to proceed to Stage 2; being a developed concept design. Submitters to consider the industrial heritage of the site and ideas will be judged by panel of independent experts & shortlist of designs will be created. The winner of stage 1 to be announced 26 Sep 09 and Stage 2 announced Nov 09 with work expected to start July 2010 ($80 mill approx).

LOWER NORTH ISLAND

Blackmore House: Early planning for redevelopment of office building in Wellington ($10 mill) with work like to start 2011. Peka Peka To Otaki Expressway SH1: Revising roading plan and includes a new bridge & realignment of railway line ($215-355 mill). Kapiti Expressway SH1: Submissions for two options for a proposed expressway on SH1 on the Kapiti coast being sought. Wellington Area Rail Project (WARP): Early planning underway for a proposed train storage facility on the Kapiti coast ($15 mill) & progressive platform upgrades around Wellington & Upper Hutt region ($22 mill). NZ Overseas Petroleum Ltd: Kan Tan IV drilling rig scheduled to drill late 09 to explore the potential to extend the prospect PEP 38460, offshore Taranaki. Diamond Offshore Drilling using Ocean Patriot rig. Albacore Prospect: Final planning underway for Albacore-1 exploration well in PEP38491, offshore Taranaki. Drilling scheduled to start Oct/Nov 09. Hoki Oil Prospect: Drilling scheduled to start Dec 09 as part of the development and exploration of a potential oil bearing reservoir in PEP 38401, offshore Taranaki. Branz Ltd: Early planning underway for upgrade of research centre in Porirua ($5 mill). Massey University: A new Information Services Centre and College of Creative Arts proposed and Registrations of Interest and Requests for Proposals to be issued with contract awarded by early Sep 09 ($35 mill). Hutt Hospital: Registrations of Interest likely to open late Sep 09 for redevelopment of the hospital, with work to start early 2010 ($35 mill). SOUTH ISLAND Ngapara Coal Pit: In early planning for a proposed opencast lignite coal pit at Oamaru. Developer: Holcim (NZ) Ltd [WES]. Windsor Silica Sand Pit: In early planning for a proposed silica sand pit also t Oamaru. Developer: Holcim (NZ) Ltd [WES]. Lyttelton Port Co Ltd: Resource consent application lodged for expansion of coal yards ($25 mill). Remarkables Park Ltd: Early planning for anew major shopping centre at Remarkables park. Work may start 2010. PGG Wrightson Seeds: A new distribution centre at Izone Industrial Park in Rolleston, to be completed by mid 2010 ($12 mill).

Of the 8 national deferred top-end projects, there is 1 residential, 2 industrial, 2 commercial, 1 hospitality, 1 school and 1 government project. In lower North Island there were six: 3 residential, 1 industrial and 2 government. The spread is across the entire sector and indicates that all aspects of the economy are feeling the pinch. 6 private sector projects were reported in August as cancelled in upper North Island: 4 residential, 2 industrial, the last including a future commercial airport at Whenuapai. In lower North Island there was one private residential cancellation. In South Island the 4 cancelled projects comprised a residential development, a museum for the New Zealand Fighter Pilots, an industrial milk processing plant and in Dunedin the Otago Regional Council new principle office building.

At the tenders stage in Aug 2009 there were 13 top-end jobs in upper North Island, 8 in lower North Island and 4 in South Island.

The interesting point here is 7 of the 13 in the upper North Island and half those in the lower North Island and South Island were private. This is a significant improvement on the lower private numbers this past quarter.

Of the projects being tendered some are: Pak'nSave Supermarket: New supermarket due to start Nov 09 in Tauranga. Waitakere City Council: Evaluating Registration of Interest for Sturges Road overbridge ($8.5 mill). Rotorua District Council: Selected tenders close Sep 09 for construction of pressure sewer mains & pump stations ($13 mill) for Okareka, Okere Falls, Otaramarae & Whangamarino sewerage construction schemes. BNZ Tower: Tenders closed for refurbishment of 3 lowest floors ($8 mill). Q Theatre: Tenders for new professional performing arts theatre next to Auckland Town Hall ($15 mill). Telecom NZ: Tenders for fit out to 2 (of 4) new building tenanted by Telecom in Auckland ($60 mill). Tui Mine Remediation: Tenders for Tui Mine Remediation, tailings stabilisation & alkalinity injection trials ($9.8 mill). Te Rapa Bypass: Shortlisting tenders to deliver design & construction of SH 1 Te Rapa Bypass under Alliance model. Sanctuary at Remuera: Tenders closed & work expected to start on development of Retirement village in Newmarket ($25-$30 mill). Pakuranga Park Village: Tenders closed for Stage 1 & 2 of expansion to retirement village. Work planned to start Sep 09 ($8.7 mill). Franklin District Council: Expressions of Interest closed for road renewals & reconstruction contracts 09/10 ($6.5 mill). Auckland Regional Transport Authority: In negotiations with preferred contractor for Auckland Integrated Fare Solution Programme, providing integrated ticketing. Installation expected to take 2.5 years ($32 mill). Kapi-Mana School: Registrations of Interest close for new facilities to cater for students with special needs within the grounds of Aotea College ($5 mill). Work to start mid Oct 09. Gisborne District Court: Registrations of Interest close for construction of major alterations and additions ($6 mill) with work to start Jan 10. New extension to provide new jury capable courtroom & new family/civil courtroom, almost doubling the size of existing courtroom. Gisborne Wastewater Treatment Plant: Tenders opened for wastewater treatment plant ($45 mill) with work expected to start before end 09. Forte Development: Negotiating with preferred contractor ($10+ mill) for stage 2 of College street development in Wellington which includes a 10 level apartment building with 40 apartments. Appartmento IL Casino: Negotiating with preferred contractor for 31 apartments over 9 levels plus ground floor retail etc. [Wellington] ($20 mill). Hikurangi Forest Farms Ltd: Tenders for Wood processing plant [Gisborne] ($100 mill) with work expected to start 4th qtr 09. Takahe Estate Ltd: Expect to call selected Subtenders Aug/Sep 09 for construction of villas on this 12000 sm subdivision in Masterton. Bowen Hospital: Stage 1 & 2 of Bowen Centre ($20 mill), [Wellington] adjacent to existing hospital to house specialist consulting facilities, a significantly expanded radiology suite, a new endoscopy suite, new theatre suites and other medical related facilities. Air Nelson: In negotiation with preferred tenderer for upgrade to the Nelson Airport engineering & maintenance plant ($12 mill). Work will start mid to late 09. Lincoln Community Centre: Tenders close late Oct 09 for new community centre to be built in 2 stages ($7.9 mill). Marlborough Aquatic Centre: Tender result expected for main building contractor for construction of new aquatic centre ($14 mill).

Some 24 top-end projects (including 7 private sector) reached the contract or commencement stage in August 2009. Of these, 18 are located in upper North Island (including 3 private), 3 in lower North Island (I private and 2 government) and 4 in South Island (all private):

Some of these at commencement stage are: Auckland City Hospital: Work started Aug 09 for refurbishment to Support Building, level 14, assessment, treatment & rehabilitation wards. Builder: Practec Ltd. Cadbury Distribution Centre: New warehouse, offices & carpark in Mangere, Auckland. Builder: Aspec Construction Ltd. Mon Desir: Work due to start for external refurbishment of 4 of the 5 buildings in Takapuna. Contractor: Eagle Masonry Ltd. Onehunga Station: Work to start on upgrade of this station. NZ Transport Agency: SH 16 Punganui Stream bridge replacement between Helensville & Kaukapakapa. New Lynn Rail Station/Bus Interchange: Work started early Aug on this new rail station/bus interchange. Mangere Arts Centre - This building is approx 200sm and has galleries, performance space, admin area, cafe & associated amenities - Builder: Watts & Hughes Construction Co Ltd (AKL) Open Country Dairy - Modification on new milk powder manufacturing plant ($10 mill near Matamata. ABB Grain: Stage 2 & 3 of a fully dedicated ruminant feedmill which will deliver an initial operating capacity of 120 000t per annum and expected to increase to 240 000t per annum [Wiri, Auckland]. Builder: Ebert Construction Ltd. Birkdale Trunk Sewer Upgrade: Work started Oct 09 on this upgrade from Eskdale rd to Roseberry Rd, catchment B [North Shore]. Contractor: Pipework Rehabilitation Solutions. Lakeview North Shore Hospital: Enabling works started & building work to start Oct 09 for acute diagnostic unit, Lakeview Extension ($36 mill). This is a 3 level development, totalling approx 7500sm & comprising 3000 sm clinical space, 1500 sm of space shelled for future use, 500 sm of non clinical & plant space, with approx 2500 sm of internal clinical refurbishment. Builder: Fletcher Construction Co Ltd (AKL). Kowhai Creek Stage 1: Stage 1 of 45 lot housing development in Wellington. Eastern Institute of Technology (EIT): New workshop area for vocational training as stage on and offices & classrooms as stage 2. Builder: Gemco Construction Ltd. Christchurch City Council: Energy centre for the proposed biosolids drying facility. Contract is being finalised & proposed start of operations set for May 2010 ($22 mill for total project). Contractor: Energy for Industry Ltd. Future@Picton: Development of London Quay waterfront ($5 mill). Builder: Evan Jones Construction Ltd. Alpine View Aged Care Centre Ltd: Work planned to start Oct 09 and to be done in stages. This will give approx 175 independent living units, 45 apartment units and a health facility with associated facilities. Builder: Lifestyle Properties South Island Ltd. L&M Group: Stage 1 of old mining operation and expected to be completed by June 10 and developed in two stages over seven years. This involves 150ha of land to be mined. ($90 mill). Elmslie House: New U shaped accommodation block at Retirement village ($10mill) in Wanaka. Builder: The Breen Construction Co Ltd. Clearview School: New primary school [Rolleston] to be completed & ready for occupation by start of 1st term 2010. Stage 1 ($9.88 mill) will be adequate for 400 pupils & Stage 2 will expand to provide for roll of approx 600 pupil. Builder: Mainzeal Property & Construction Ltd (CHC). BioDiesel: Fit out of Seed Press building commencing in Rolleston.

In line with the building consent statistics we have seen a slight lifting in residential consent numbers, but the work that should be in the pipeline for the larger companies, is still at very low levels and does not bode well for the quick recovery that the Real Estate hype would indicate.

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