Property Insider: Land around The CAB apartments marketed for student units; Icon NZ accounts; Devonport plans

“Prior to signing up to buy in The CAB, I ensured through my research that the vision for the area made good investment sense. The council’s vision for the area made no mention of large-scale student accommodation in this immediate area.

“I see the long and medium-term frameworks for the area did not, and have never, made mention of student accommodation,” the neighbour said.

It was not in the CAB owners’ interests to have student accommodation built next door, the owner said.

Resource consent was granted for a hotel and residential apartments beside the 18-level heritage-listed CAB.

Three years ago, John Love showed off apartments within The CAB. Photo / Alex Burton

Developer John Love has long held ambitions to build on that land and did underground preparations years ago to enable it.

JLL is marketing the 2829sq m plot at 1a Greys Ave as a prime location for up to 704 beds across two buildings.

“The site’s strategic position within Auckland’s education precinct also supports alternative use as purpose-built student accommodation, subject to a new resource consent,” JLL says.

The CAB and Aotea Square. Photo / Sylvie Whinray

Expressions of interest must be in by 4pm, July 28.

Asked about the resident’s concerns, Love said he owned all of the Civic Quarter, except carparks and apartments he had already sold.

“My funders have a mortgage. I don’t owe anything further to the council until the entirety of the Civic Quarter is completed.

“There is no restriction in my agreement with council as to the use I put any of the building to, be it commercial, retail, or short or long-term accommodation,” Love said.

Councillor Mike Lee said the $3m deal was risible. Photo / Sylvie Whinray

Mike Lee, an Auckland city councillor, said he shared concerns about the land sale.

“The Civic Administration Building – all 21 storeys including basement car parks plus half a hectare of surrounding land – was sold with the support of former mayor Phil Goff all for the risible amount of $3m.

Land around The CAB apartment block in Auckland is being marketed for sale. The apartments were developed in the former council-owned Civic Administration Building, hence that title. Photo / JLL

“There was no mortgage to secure the council’s interests, no deposit sought. Last time I checked, not one cent of the $3m had been paid,” Lee said.

Student accommodation on what was meant to be open space would further impinge on the original vision of a civic square, he added.

Phil Goff indicated satisfaction with the sale of the Civic Administration Building. Photo / Michael Craig

Asked about Lee’s criticism, Love said: “Lee should know $1 has been paid as per the agreement. And nothing else is due and payable, as you know.

“As he rightly points out, the prior council fully endorsed the deal. This is because a liability was being taken off the council books.

“Asbestos contamination in the building and surrounding land was extensive. Along with the most restrictive Heritage listing (voted in by Council).

“I’m not sure what open space Lee is referring to but any new buildings already have resource consent. There would be no reduction in open space in any case.

“I must have missed the section where I was required to honour anyone else’s vision but mine and Josephine’s, given it’s our money invested in Civic Quarter and we completed the adaptive reuse on The CAB to a very high standard as we agreed to do,” Love said.

The CAB on Auckland’s Aotea Square. Photo / Alex Burton

Asked last week about the land sale with the potential for student apartments, Goff said Love was regarded as an experienced developer.

The deal was seen as most satisfactory because few could take on such a project.

The building was not easy as Love found when he converted it into apartments, Goff said.

In 2019, the Herald reported on Love’s Civic Lane striking a $3m deal to buy half a hectare and the 18-level ex-CAB from Auckland Council’s former property arm, Eke Panuku.

Plans last decade for a new building, shown here as a dark structure to the left of The CAB.

He had borrowed $70m from Qualitas on the 114-unit CAB project, which had cost “over $150m”.

Under a 2019 change in the deal, Love & Co was to pay the $3m on December 30, 2020.

But by February 2024, Eke Panuku informed the mayor and councillors that payment had been deferred until Love has fully repaid his financier.

In 2024, Love told the Herald that he had not paid the $3m because, although he had finished work on The CAB, the money was still not due.

Back in 2024 – Allan Young of Eke Panuku with John Love at The CAB apartments. Photo / Dean Purcell

He undertook New Zealand’s largest office-to-apartment conversion.

Love predicted it would be “24 to 28 months” before more apartments were sold, enabling him to repay his mezzanine funder, Australia’s Qualitas.

Only then, when he had repaid the money borrowed, would he be able to pay, he said.

Icon (NZ) annual results

Director of Icon NZ, Dan Bosher, at 256 Queen St, Auckland. Photo / Annaleise Shortland

Icon Co Pty (NZ) made $3.08m net profit after tax in the latest year, down on the $3.2m previously.

Revenue of $285m was reported in the year to December 31, 2024, falling to $113.8m in the latest year.

Directors are Auckland’s Dan Bosher, Sydney’s Michael Read, Melbourne’s Tatsuru Isano, Shingo Hori, Andrew Ford, Wataru Yamashiro and Hiroshi Takei and Tokyo’s Jun Karasawa.

Bosher told this column that the general downturn here led to lower revenue last year.

But net profit was up as a percentage of revenue.

That underscored that Icon NZ continues to deliver projects well and is showing “discipline in controlling the controllables. In the 12 months to 31 December 2026, we expect this revenue trend to continue”.

“As we look ahead, we are seeing signs that the pipeline of construction projects is starting to recover and are confident that we will grow revenue in 2027,” he said.

Icon has completed $1.7 billion of work in New Zealand since establishing itself here as a standalone business in 2017.

Tokyo-listed construction giant Kajima Corporation owns the builder.

$400m Devonport plans

Plans for the North Shore’s Devonport. Image / Devonport Property Management

A large number of documents and a team of consultants are behind these plans for the waterfront Auckland area, launched last week.

“Devonport Lanes is formed through the adaptive reuse of heritage buildings, complemented by four new residential buildings and a boutique hotel,” according to the development overview.

Devonport Laneways – a new concept launched last week. Image / Devonport Property Management

The plan includes 80 to 90 apartments, a 46-to-50-room hotel, 5386sq m of commercial and retail floor area, and 2319sq m of adaptively reused and refurbished heritage buildings are planned on Victoria Rd.

Basement parking for 80 to 200 spaces is subject to geotechnical conditions and final basement and car-parking design outcomes.

The construction phase is estimated to take five years.

Looking down the main street with Clarence St on the right. Photo / Devonport Property Management

Developer Peninsula Capital said that it could inject $398m into the economy, supporting 1200 direct construction jobs and 3700 jobs overall across multiple sectors, with a GDP uplift of $355m (Auckland) and $402m nationally.

Tourism benefits of 65,000 to 130,000 domestic and an additional 17,600 to 35,300 international visitors per annum could generate $8.3m to $16.6m in annual visitor spending.

View from the waterfront. Image / Devonport Property Management

Hotel guest spending could be $7.5m to $8.6m annually.

“Overall, the project delivers significant regional economic benefits, sustains employment, increases GDP, and acts as a catalyst for long-term revitalisation, reinforcing Devonport’s role in Auckland’s identity and supporting a well-functioning urban environment,” the overview said.

But locals are divided, many fearing Lake Rd traffic effects, impact on heritage, building height and visual domination.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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