Property Insider: Two projects set to launch worth $3b signal an incredible year for the industry

What a way to start 2026: three invitations to multibillion-dollar projects which occur in the short space of two days next month.

Two of the events are at Auckland’s International Convention Centre, the other is in Queenstown.

Being a Mainlander, it’s a tough call when I haveto turn down an invite to any Mainland event.

When it’s to meet the chiefs at highly active, successful developer 94 Feet on a site above Lake Wakatipu mid-summer, it’s even harder.

But two Auckland events call, partly because I’ve been following this since it was signed 11 years ago and partly because I already said yes to attend late last year.

The three big events in mid-February are the opening of the NZ International Convention Centre (a morning iwi blessing and an evening grand opening) followed by a sod-turning ceremony to mark the appointment of CMP Construction to the $2b project by 94 Feet’s Lakeview Te Taumata, Queenstown.

If you’d like a wider view of what’s planned in 2026, read this feature: Construction boom: 20 big projects set to rehsape Auckalnd and beyond in 2026.

It starts with Auckland Airport and ends with Westgate because the projects are listed alphabetically.

At long last, the NZICC opens next month.

Two bosses last decade signed that deal for its construction in 2015: Australian-born Nigel Morrison was SkyCity CEO and British-born Mark Adamson was Fletcher Building CEO when they were pictured putting pen to paper.

They were pictured on the site where demolition had already begun.

Neither head the businesses now.

Adamson previously said: “This is an amazing building and a huge opportunity. I’m honoured that SkyCity has chosen [Fletcher Construction] to be a key part of bringing this project to life”.

Quotes can appear so different in hindsight.

Morrison forecast the project would take 38 months to build and be finished by 2019.

Now, SkyCity is suing Fletcher for being so late with the NZICC.

Morrison estimated spending $471m on the convention hub, an additional $159m on the new hotel and a further $73m “most of which is on the new laneway, airbridge, retail fit-out and additional carparking”.

In return for the public benefit of building the NZICC, SkyCity won concessions to vastly extend its slot machines, a highly popular and profitable arm of the business.

While the public has had no benefit of the NZICC in these 11 years, SkyCity has had the benefit of the extra pokies.

As the Herald reported in 2013, SkyCity met the full cost of the NZICC in return for 230 extra pokie machines. Its exclusive gambling licence was also extended to 2048.

But let’s not begrudge that largesse by the state, given the challenges of the fire, the pandemic and so much else.

It’s time to celebrate completion and opening next month, so let’s look forward.

A blessing by iwi happens one morning, then the grand opening is the next evening. What a celebration that will be after the heartbreak of this development.

The controversial, much-blighted NZICC is now a finished fully functioning billion-dollar building, although it started out around $700m.

At Queenstown, the Lakeview project, simmering for years, is a $2b scheme and once involved ASX-listed Centuria Capital Group which mysteriously exited it last year.

“In this town, you’re either for it or against it,” said one local of the controversial deal by Queenstown Lakes District Council to sell what was the campground near the Skyline Gondola above the township to Australians.

Two days before Christmas, news broke on this front.

On December 23, the council said it had completed settlement on stage one of the land to be developed in the Lakeview precinct.

The deal, signed by both parties in October 2019, contractually binds 94 Feet and the council to commercial terms.

Settlement last month followed the developer meeting conditions of the agreement, including design approval, consenting, funding, equity commitment, and contractor engagement.

This is the first lot sold to the developer. Land parcels will be sold progressively in seven stages, with each stage to be developed in accordance with a master plan approved by the council.

Each parcel has a fixed base land payment, with additional profit share payments allowing Council to benefit from value uplift and development success.

Stage 1 has settled for $8m. But $75m is to be paid over the course of the development, plus any profit share received, the council said.

All up, 5% of the proceeds will be given to the Queenstown Lakes Community Housing Trust for affordable housing, the council said.

Mayor John Glover said: “This marks the end of a very long period over which council and the developer have worked to meet their obligations under the agreement for this site. We all look forward to the physical works starting which will bring us a step closer towards achieving our vision for the site.”

The project is for:

94 Feet spokeswoman Kristen Smith, of Unfold Communications, said those involved are:

Starting construction would be a milestone for the project, with stage one funding from Merricks Capital, a wholly owned subsidiary of ASX-listed Regal Partners, Smith’s statement from those involved said.

That will enable delivery of that initial phase during the next two years.

Rzechta said: “Breaking ground represents the culmination of years of planning, collaboration and commitment from a team of experts whose deep passion have shaped Lakeview Te Taumata into a project of international quality.”

Paul Speedy from the council said it was a significant step toward the authority’s original vision to “deliver compact, high-quality urban growth near the Queenstown CBD, balancing housing, infrastructure and amenity in a way that strengthens the town’s long-term vitality and identity.”

Merricks’ Jack Jolly said this was the third project with 94 Feet and the second in New Zealand.

The same funder loaned to 94 Feet to build Hotel Indigo.

Stage one of The Roto Collection is two residential towers and a co-living hotel.

More than $150m pre-sales were secured, including the record-breaking $33 million sale of the penthouse and sub-penthouse floors.

Roto is scheduled to be finished by late next year.

In yet another CMP Construction victory, the company has won a big Queenstown hotel job.

It is working for developer Tony Gapes to build the $85m 221-room six-level Radisson RED hotel opposite FreshCoice supermarket on Hylton Pl.

Gapes is planned a number of new hotels there, calling the area Alpine Quarter.

The new hotel is expected to take 20 months to buid with an initial three months of foundtion work.

In Auckland, CMP is building the new Pompallier on Ponsonby, the Moxy Hotel and working for Metlifecare.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.