Fiji real
estate developer talks about upcoming projects
Auckland developer Neville Mahon, who is involved in
real estate projects worth $600 million in Fiji, says the military coup
slowed his sales inquiries but business had now recovered.
Mahon, head of Greenlane-based Lausanne Project
Management, said sales ground to a halt in December and January
but were now strong again. ‘‘It surprised me that it’s actually bounced
back a lot faster than I imagined,’’ Mahon said.
‘‘The coup did have an effect in December and January
when inquiries went completely dead.’’
Fiji’s Land Transfer Office stopped transferring
titles but Mahon said people’s fears about the coup had been the real
reason for the downturn.
Mahon is one of New Zealand’s most ambitious
developers. He is developing the Fiji Resort & Spa managed by Hilton on
Denarau Island, a project he said would be worth $300 million when
finished.
Stage one of the resort with 240 rooms and 150 villas
is finished. Stage two will bring an extra 91 villas and 146 rooms. A
third stage is also planned for the site, which is leased for 90 years.
Buyers came mainly from Auckland and Christchurch, Mahon said, but
Australians have also bought. Properties at the resort are selling for
$460,000 to $4 million. As well as his Auckland office, Mahon has a
sales office at Denarau and a new office opening in Nadi.
He has a second large development on Nananu Island,
which he owns. Mahon said that would also be worth around $300 million
when finished. He is developing 23 villas and investors have bought
shared ownership from $240,000 each.
Nananu is 35 minutes by air from Denarau Island and,
unlike the Hilton resort, land there is freehold. The island is 10
minutes by boat from Raki Raki on the mainland of Viti Levu.
Mahon took issue with a report late last year which
said international hotel operator General Hotel Management had pulled
out of operating the Nananu development — which was to be called called
The Chedi Resort — because of political issues. ‘‘We decided to end the
and we’re talking to two — possibly three — hoteliers and we’ll soon
sign another international hotel management company with closer
links to the region,’’ Mahon said.
Developing in Fiji was difficult as buying land and
getting approvals for development and construction work was not easy, he
said. Nananu Island’s sections, which range from 2300sqm to 13,400sq m
are selling for an average $700,000 to $800,000. Smaller sections are
going for $400,000 but Mahon is asking more than $1 million for larger
pieces of land.
He bought the island about four years ago from an
heir to the Procter & Gamble fortune.
Mahon has funding from Strategic Finance for his
Denarau project. Kerry Finnigan, Strategic’s chief executive, said
the December coup was of concern, particularly when the Land Transfer
Office put a freeze on issuing titles. But overall the political move
had little effect on Mahon’s project.
for more see:
www.fijibeachresortbyhilton.com
www.nananu-island.com
Originally published
February 2007, New Zealand Herald |
