International development and construction expertise joins forces with local partners

Quality commercial and residential development in Christchurch has been boosted by a newly-formed company, the NewUrban Group.

NewUrban is a joint venture between Beijing-based Huadu Group (Huadu) and local Christchurch businessmen John Fairhall and Bert Govan. The new company combines Huadu’s experience in the upper end of China’s property development market with the proven local property market expertise of Fairhall and Govan.

Owned by the Wang family, Huadu is one of China’s larger privately-owned, family-run property development and construction companies, with experience in the commercial, residential and municipal property sectors.

Mr Zhiguo Wang, founder of Huadu, first visited Christchurch in the mid-2000s to investigate potential investment opportunities and to build relationships, partly in response to the Chinese Government’s ‘Go Global’ strategy that encourages successful Chinese companies to partner with international businesses.

Having already formed a special affiliation with Christchurch pre-earthquakes, Mr Wang has been very keen to bring his company’s skills in development and construction together with his much-needed foreign capital, to help with the city’s rebuild.

Looking for people who shared his passion for innovation and commitment to finding creative solutions, Mr Wang and his son Jianping Wang, met with a number of people in the Christchurch property market. Govan, Fairhall and the Wangs recognised they shared similar values and could see the considerable benefits they could bring to Canterbury and wider New Zealand property industry by working together.

In 2013, the partners signed a memorandum laying out a proposed business relationship. Since then Huadu’s New Zealand business team have maintained a low-key presence in Christchurch jointly developing a business model with their new Christchurch partners.

In July of this year, Govan and Fairhall went to China with a team of leading industry experts from New Zealand to review Huadu’s industry-leading construction methodology and material procurement programmes first-hand.

“We are delighted to be partnering with Huadu, a company that has won numerous Chinese construction awards over a range of projects from residential through to commercial building types,” Govan says. “The NewUrban Group brings international capital and expertise, delivered through experienced local partners to the quality end of the New Zealand property market.”

Govan adds, “it’s important to note our product is aimed squarely at local buyers”.

One of NewUrban Groups’ projects currently underway is Lintrathen Gardens – a residence and townhouse development at 140 Glandovey Road, Fendalton. Designed by leading architect David Sheppard, from award-winning firm Sheppard and Rout, the innovative design incorporates protected trees into the overall landscaping plans. The project is currently at the resource consent phase with the construction of two streamside residences due to commence in the New Year.

Fairhall says NewUrban will be applying Huadu’s expertise in the upper end of China’s development market to all of the group’s ventures.

“We will be adapting Huadu’s technology and construction systems and they will be delivered by leading Christchurch and New Zealand companies to achieve high quality outcomes across all of NewUrban’s developments,” he says.

Huadu commenced operation as a subcontractor focusing on the construction market in Beijing, participating in various large public and private sector projects. It is now comprised of several different business divisions ranging from residential house building, property development, contract construction and municipal public projects, to landscaping and international trade.

A current project Huadu has under development is Xianghe Industrial Park, located south of Beijing. This project will eventually see 300,000 people living on a 42 sqkm site that includes retail and commercial properties.

“We can learn a lot from our Chinese partners in terms of efficient and cost-effective project delivery,” says Fairhall. “And as a matter of policy we share this learning with local construction companies with whom we have long-established relationships.”

Govan and Fairhall’s successful track record in property development spans more than three decades and includes luxury villas and apartment complexes, and an exclusive lakefront development in Wanaka. They have also owned and developed a range of projects from hospital car park buildings and shopping centres, to historic building restorations and the development of the South Island’s first business park located in Bealey Avenue, Christchurch.

The new joint venture complements the New Zealand Government’s ‘Opening Doors to China’ strategy, which seeks to strengthen the nation’s economic, political and security relationship with the world’s most populous nation. It also reinforces the Free Trade Agreement signed with China in 2008.

Fairhall and Govan acknowledge the role of former Christchurch Mayor Sir Bob Parker as playing an important part in helping the Chinese and Kiwi partners forge a solid working relationship.
Sir Bob Parker says both parties bring enormous experience to the table. “It has been a detailed process, based on both the Kiwi and Chinese partners identifying where their individual strengths are, and then jointly developing a commercial framework that delivers game-changing value for their clients.”

Parker believes this form of Chinese investment, where leading international companies join forces with local partners, will continue to create significant opportunities for Christchurch businesses.

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