Property Council says New Zealand's capital markets are simply not big enough to provide the funding.
Foreign investment will be needed for Waterfront Auckland’s proposed $1 billion investment development, according to Connal Townsend, chief executive of the Property Council.
Yesterday, the council-owned quango announced the beginning of a process to attract $1 billion of private investment for the prime waterfront land.
Mr Townsend says New Zealand’s capital markets are simply not big enough to provide the money.
The investment opportunity relates to the development of sites in Wynyard Quarter, the former semi-industrial space.
Developments completed or under way so far have required about $156 million of investment.
The next stages will involve commercial office space and between 600 and 1000 residential units.
The first tranche of privately funded development is a 28,000sq m block bound by Jellicoe, Madden, Halsey and Daldy streets to be known as Wynyard Central.
It comprises around 150,000sq m of gross floor area – approximately 50,000sq m of commercial use and 100,000sq m of residential spaces, including an international hotel site.
