It’s been a hard row to hoe for a new Bay of Plenty business park but developers would not settle for second best. With construction of a motorway interchange now complete, Rangiuru Business Park is expected to create up to 4000 jobs within an easy drive of land designated for new homes.
The project was funded by Bay of Plenty Regional Council’s investment arm, Quayside Holdings, with extra support from the Government’s Provincial Growth Fund.
“From purchasing rural land in 2004 we now have 148 hectares of industrial park ready for business, with 70 per cent of the first stage under contract,” Quayside CEO Lyndon Settle confirms.
“The foresight and close cooperation of local leaders means the vision of an industrial development that supports a liveable local and regional community is now a reality.”
A recent event, which saw minister for regional development, Shane Jones, joined by other elected representatives, local leaders and iwi in attendance, marked completion of the latest stage of the project.
Settle says that: “Despite the Global Financial Crisis, Environment Court delays and rising construction and financing costs, the Bay of Plenty Regional Council and Quayside persevered with $18m of Provincial Growth Funding the stimulus for earthworks commencing in 2021.”
The business park will help maintain the Bay of Plenty’s reputation as a great place to live and do business, Settle expects.
“Four years later, close collaboration between seven lead contractors has created jobs for up to 200 workers during construction, with each additional stage of construction expected to deliver between $16m and $55m of economic benefit to the Western Bay of Plenty District.”
The partnership between Quayside and central government ensured low-cost financing for the project, Bay of Plenty Regional Council chair, Doug Leeder, confirms.
“It [was] a privilege to celebrate another significant milestone,” he said. “From its origins in the SmartGrowth strategy of 2004, Rangiuru is a cornerstone project for our region’s development.
“A collective effort has brought us to this moment and I extend my heartfelt thanks to everyone involved for their dedication and support to ensure the Bay of Plenty remains a vital part of New Zealand’s growth story.”
The sub-region will not only benefit from jobs created at Rangiuru Business Park, but the development will support horticulture, manufacturing, warehousing and logistics in the area, Western Bay of Plenty District Council’s mayor James Denyer adds.
“The jobs the park creates will also be a catalyst for future housing development, whether in Te Puke or the major proposed developments of Te Tumu or Te Kāinga just adjacent to us here.”
Port of Tauranga shares set for sale?
A partial sell-down of shares in the Port of Tauranga could allow Quayside Holdings to diversify investments, reduce risk and help council to keep rates down while maintaining services.
While no decision has been made, and there is no timeframe for any sale, Quayside – BOP Regional Council’s investment arm – is considering options and seeking advice, the organisation’s Lyndon Settle confirms.
“We love the port. It’s an important regional asset and, if shares are sold, we will continue to be a cornerstone shareholder, focused on value creation and ensuring the Port continues to play a positive role in the Bay of Plenty.”
Quayside could reduce its 54.4 per cent shareholding to a minimum 28%. However, council has asked Quayside to ensure any sale optimises value for shares sold and the remaining stake it will continue to hold in the port.
“We are in no hurry – we’ll only sell shares if and when conditions are right, when we can get the best outcome for the region and can meet the parameters for sale set by council,” Settle adds.
Quayside could reduce the risk of having most of its investment in one asset and generate resilient returns for council, he expects.
Quayside’s investments have grown from $53 million to $3.5 billion over 34 years, with non-port investments increasing from $15m to $580m. Last year, Quayside paid a $45m dividend to the Bay of Plenty, which council used to reduce general rates by an average of $380 per household.
