Formosa: NZ Super fund buys embattled resort

Real Estate

The NZ Super Fund and parties associated with Russell Property Group have agreed to buy a significant waterfront landholding in Beachlands which includes the Formosa Golf Course.

The partnership, Beachlands South LP, will be a separate venture to the limited partnership NZ Hotel Holdings Asset LP established last year to acquire hotel assets.

The acquisition comprises around 250 hectares and consolidates the Formosa Golf Course land (170.5 hectares at 110 Jack Lachlan Drive), as well as a property of 80 hectares at 620 Whitford-Maraetai Road.

The Whitford-Maraetai Road site is owned by Pipers Limited Partnership, an associate of Russell Property Group and its investment partners.

The Times did a story last year on the degradation of the site & legal issues embroiling the (past) owners of the once four-star resort.

 Russell Property Group will manage the land and continue to operate the Formosa Golf Club for the foreseeable future while the partnership considers future options.

NZ Super Fund’s head of direct investments Will Goodwin says, “The new venture provides the fund with exposure to an asset class that it has been evaluating and exploring for some time. This investment creates a high-quality landholding that we will look to add value to overtime.

“We are a long-term investor and this acquisition signals our confidence in Auckland’s future growth and commitment to the region. In time we will engage with the community and Auckland Council about what kind of high-quality masterplan and associated infrastructure improvement could work for the area.”

Russell Property Group managing director Brett Russell says the partnership has enabled the consolidation of a strategic waterfront site in Auckland that allows for a considered, long-term plan for the benefit of the Beachlands area and Auckland as a whole.

Russell Property Group will manage the land and continue to operate the Formosa Golf Club for the foreseeable future while the partnership considers future options.

“Whilst there have been a number of proposed development concepts over the years, no definitive plans are currently in place and any future plans would be developed in close consultation with the local community, Auckland Council and all stakeholders,” Russell says.