Chief Stipe Posted 6 hours ago Posted 6 hours ago Crown backs $11.7m of racecourse-edge project with underwrite Four new contracts brings the total number of agreements to nine, with 690 homes backed for a total $165.9 million by Alice Peacock18/11/2025 Share Stage 9D of Trackside, the final phase of the Gillies Group's Wallaceville Estate development. Photo: Gillies Group The group behind a residential development in Upper Hutt says the backing it received from the Government was “indispensible” in enabling them to start building.https://bitofayarn.com Gillies Group is one of four developers to receive a residential development underwrite agreement in the latest round of Ministry of Housing and Urban Development contracts. The pre-sales commitment from the Crown to bail out developers unable to sell homes helps them secure bank finance for consented, costed and ready-to-commence projects. https://bitofayarn.com The Ministry of Housing and Urban Development’s Charles Mabbett says the four latest developments to be approved will deliver around 270 homes. The four agreements bring the number of residential development underwrites to nine, with the value of the contracts for 690 homes totalling $165.9 million. The limited-time initiative was introduced in October 2024, intended to support the residential development sector while the economy recovers by offering a financing bridge to successful applicants.https://bitofayarn.com A total 53 applications have been received, 25 of which are not progressing due to ineligibility or failure to pass the Government’s assessment process. https://bitofayarn.com The ministry agrees to purchase the underwritten dwellings in the case that the developer is unable to sell them on the open market after an agreed marketing period. The ‘underwrite price’ is lower than market value. Trackside is the final phase of Gillies Group’s Wallaceville Estate. It comprises 64 lots in a greenfield development integrating parks and bush into a residential setting and flanked at either side by train stations. The homes are a mix of two-, three- and four-bedroom houses and units. Sales manager Jamie Gillies says the underwrite supports the 30 homes that make up stage 9C. Earthworks are complete and building is underway, with five homes pre-sold. Stage 9D – the other section of the Trackside development – was built first and all but one of the 34 homes are sold. Stages A and B targeted first home buyers and were part of the KiwiBuild scheme.https://bitofayarn.com Gillies Group is “well underway” in having the rest of them sold without the Government having to act on its underwrite, but Gillies says this doesn’t mean the backing agreement wasn’t a crucial aspect to get it started. “Given the timing of when the underwrite was available, it was indispensable. It allowed us to start that development when we wouldn’t have otherwise been able.https://bitofayarn.com “That was because of bank funding; they’re requiring you to get so many pre-sales before starting. It allowed us to go to the bank with 20 pre-sales underwritten for 20 of the houses, albeit at significantly reduced rates than what you’d normally sell them for, and say to the bank: ‘Look, worst-case scenario we’ve got the residential development underwrite behind us’. “So that allowed us to get the funding to get on and start the building.” Gillies notes it’s a lot easier to get funding now than it was 18 months ago. The market is much smaller for homes built off the plan because most people buying a home to live in don’t want to wait up to two years for a house to be built. Buyers are typically speculators and investors.https://bitofayarn.com “This programme has done exactly what it was supposed to do, which was to bridge the gap between a market that had fallen … and stabilisation. Getting confidence and financing from the banks and third party lenders was at that point really difficult. “In a market where there was no building going on, it’s kept a lot of families employed. So it’s been a win-win for everybody.” Mabbett, from the ministry, says the residential development underwrite supports developments that align with local market demand and have a low risk of the underwrite being triggered. If it is triggered, homes could be sold to community housing providers, iwi or sold to the open market. “Developers with eligible projects are welcome to apply for an underwrite. Each eligible application is assessed against the residential development underwrite’s objectives and assessment framework. The highest-scoring applications progress. We expect to make further underwrites as eligible applications are received and processed.” The three other successful applicants in the latest round of underwrites includes CG Waimarie Limited, which is at the helm of the Waimarie development in St Heliers, Auckland; Modus Group, which delivers medium-density developments in Auckland, Christchurch and Queenstown; and a company named CS No.2 Limited. Two of the three companies did not respond to a request for comment. The other did not wish to comment, due to concerns that advertising its Crown backing would put off prospective buyers. Residential development underwrites were also used for the former Labour government’s KiwiBuild scheme, which was aimed at boosting affordable housing supply for first time buyers. The underwrite scheme was later widened out to support stalled affordable housing developments. Quote
The group behind a residential development in Upper Hutt says the backing it received from the Government was “indispensible” in enabling them to start building.https://bitofayarn.com Gillies Group is one of four developers to receive a residential development underwrite agreement in the latest round of Ministry of Housing and Urban Development contracts. The pre-sales commitment from the Crown to bail out developers unable to sell homes helps them secure bank finance for consented, costed and ready-to-commence projects. https://bitofayarn.com The Ministry of Housing and Urban Development’s Charles Mabbett says the four latest developments to be approved will deliver around 270 homes. The four agreements bring the number of residential development underwrites to nine, with the value of the contracts for 690 homes totalling $165.9 million. The limited-time initiative was introduced in October 2024, intended to support the residential development sector while the economy recovers by offering a financing bridge to successful applicants.https://bitofayarn.com A total 53 applications have been received, 25 of which are not progressing due to ineligibility or failure to pass the Government’s assessment process. https://bitofayarn.com The ministry agrees to purchase the underwritten dwellings in the case that the developer is unable to sell them on the open market after an agreed marketing period. The ‘underwrite price’ is lower than market value. Trackside is the final phase of Gillies Group’s Wallaceville Estate. It comprises 64 lots in a greenfield development integrating parks and bush into a residential setting and flanked at either side by train stations. The homes are a mix of two-, three- and four-bedroom houses and units. Sales manager Jamie Gillies says the underwrite supports the 30 homes that make up stage 9C. Earthworks are complete and building is underway, with five homes pre-sold. Stage 9D – the other section of the Trackside development – was built first and all but one of the 34 homes are sold. Stages A and B targeted first home buyers and were part of the KiwiBuild scheme.https://bitofayarn.com Gillies Group is “well underway” in having the rest of them sold without the Government having to act on its underwrite, but Gillies says this doesn’t mean the backing agreement wasn’t a crucial aspect to get it started. “Given the timing of when the underwrite was available, it was indispensable. It allowed us to start that development when we wouldn’t have otherwise been able.https://bitofayarn.com “That was because of bank funding; they’re requiring you to get so many pre-sales before starting. It allowed us to go to the bank with 20 pre-sales underwritten for 20 of the houses, albeit at significantly reduced rates than what you’d normally sell them for, and say to the bank: ‘Look, worst-case scenario we’ve got the residential development underwrite behind us’. “So that allowed us to get the funding to get on and start the building.” Gillies notes it’s a lot easier to get funding now than it was 18 months ago. The market is much smaller for homes built off the plan because most people buying a home to live in don’t want to wait up to two years for a house to be built. Buyers are typically speculators and investors.https://bitofayarn.com “This programme has done exactly what it was supposed to do, which was to bridge the gap between a market that had fallen … and stabilisation. Getting confidence and financing from the banks and third party lenders was at that point really difficult. “In a market where there was no building going on, it’s kept a lot of families employed. So it’s been a win-win for everybody.” Mabbett, from the ministry, says the residential development underwrite supports developments that align with local market demand and have a low risk of the underwrite being triggered. If it is triggered, homes could be sold to community housing providers, iwi or sold to the open market. “Developers with eligible projects are welcome to apply for an underwrite. Each eligible application is assessed against the residential development underwrite’s objectives and assessment framework. The highest-scoring applications progress. We expect to make further underwrites as eligible applications are received and processed.” The three other successful applicants in the latest round of underwrites includes CG Waimarie Limited, which is at the helm of the Waimarie development in St Heliers, Auckland; Modus Group, which delivers medium-density developments in Auckland, Christchurch and Queenstown; and a company named CS No.2 Limited. Two of the three companies did not respond to a request for comment. The other did not wish to comment, due to concerns that advertising its Crown backing would put off prospective buyers. Residential development underwrites were also used for the former Labour government’s KiwiBuild scheme, which was aimed at boosting affordable housing supply for first time buyers. The underwrite scheme was later widened out to support stalled affordable housing developments.
Murray Fish Posted 2 hours ago Posted 2 hours ago The speed that Housing has increased on tracks like the above! wow! add in the likes of Addington , Riccarton and Ellerslie and Te Rapa! wow! you can see the massive change when old replays are watched! It would be interesting to see how that income was spent? Quote
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