Stonewood Homes targets South Auckland 14 Oct 2016
Related articles
Friday 14 October 2016 03:37 PM
Stonewood Homes targets South Auckland with Don Ha partnership
By Paul McBeth
Oct. 14 (BusinessDesk) - Stonewood Homes, which joined the growing empire of Wellington property developers the Chow brothers this year, is seeking growth in South Auckland by setting up a joint venture with real estate agent Don Ha.
Since the Chows' Inno Capital investment vehicle bought Stonewood's national franchise rights and the Christchurch franchisee in March, the building company's earnings have grown at five times the pace they expected, director Clint Webber told BusinessDesk. A couple of franchisees left the group since Inno took over, which Webber says was because they wanted to be able to use other house building companies. There are currently 16 franchises across the country.
The newest is in South Auckland, with John and Michael Chow and Webber setting up a 50/50 joint venture with Don Ha in an effort to tap the real estate agent's close ties to the development community.
"Don is a large seller of sections in South Auckland and he's got a huge number of developments coming on stream in the next two years," Webber said. "We've got very good delivery and liquidity and that gives us very good access."
Ha was released from bankruptcy last year after building a multi-million property development empire through the 1990s and 2000s before taking on too much debt during the global financial crisis, which ultimately undid him in 2012.
Under the Chows' ownership, Stonewood has been benefitting from membership of the wider group, with cheaper access to building materials as one of Placemakers' biggest customers and the ability to secure finance with the Chows' reputation for paying on time, Webber said. That's helped Stonewood slash building times to 18-to-22 weeks from what had been 36-to-38 weeks under the previous owners.
That's meant the building company has beaten expectations and while he won't comment on the earnings, he said the group had its biggest ever month in September since it was set up in 1987.
Those sales were across all Stonewood's franchises and reduced its concentration in Christchurch to 10-to-15 percent from what had previously been 33-to-40 percent, Webber said.
"It was right across the board. We're number one in Wanaka now and probably very close to number one in Queenstown," he said.
Christchurch-based Stonewood appointed receivers in February when building work stopped due to a lack of funds. KordaMentha's Grant Graham and Neale Jackson's latest report show the business's assets were sold for $3.4 million, though Webber wouldn't comment, citing a confidentiality agreement. The secured creditor was paid $1.8 million from the proceeds, and the report said ASB Bank was still owed $6.9 million.
Webber paid tribute to the Stonewood staff for their approach to the transition, with 41 jobs saved during the handover. The company has added another 42 who will be based in its new Auckland head office.
(BusinessDesk)
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more