Investment in Forestry in Northland, New Zealand
Prime Resources Company LTD (PRC) was established in July 2003 as an investor and property developer and conducted business as follows:
2003–2005: Investment in Sawmilling Business in Gisborne
In July 2003, John Chung established Prime Resources Company Ltd (PRC) as an investor and property developer and began investing in the forestry business in New Zealand.
In October 2003, PRC acquired one of the largest sawmilling companies on the East Coast, which was under receivership due to financial difficulties.
In 2004, PRC made further investment in the business, improved its operational efficiency, and expanded the timber export market to the USA. As a result, the sawmilling business was successfully turned around and became profitable by mid-2004.
In November 2004, PRC received an offer from a major forestry company wishing to take over the entire sawmilling business. PRC accepted the offer and subsequently sold the entire sawmilling business in early 2005.
2005–2010: 1,860 ha Forestry Land Development in Puhoi, North Auckland
In early 2005, PRC acquired 1,860 ha of forestry land adjacent to Puhoi and Maurangi West in North Auckland from Carter Holt Harvey Ltd.
From 2005 to 2007, PRC managed the forestry blocks as a conventional forestry operation, including harvesting trees and replanting.
Between 2008 and 2010, PRC strategically reassessed the future use of the 1,860 ha site and sought to change the land use from commercial forestry to lifestyle residential development in order to achieve the best outcome from the property, given its proximity to Auckland City and the planned extension of the motorway towards the Puhoi and Warkworth areas.
PRC proposed to Auckland Council, including the former Rodney District Council, that the entire Puhoi forestry site be designated as a Special Zone. Under the proposal, PRC would be entitled to develop rural lifestyle residential lots, subject to the land being subdivided into a maximum of 170 lifestyle lots and approximately 1,700 ha of the forestry land being converted from commercial forestry to regenerating native bush and permanently vested under a conservation covenant for conservation purposes.
The Council agreed to PRC’s application to develop a maximum of 170 lifestyle lots, subject to obtaining Resource Consent.
Initially, PRC proceeded with a 17-lot subdivision, built lifestyle houses on the lots, and successfully sold all 17 lifestyle properties.
In 2010, PRC received an offer from a developer to take over the remaining area and the development entitlement. PRC accepted the offer and sold the entire remaining Puhoi project to the developer.
Since then, the extension of the motorway towards Warkworth has been planned across the Puhoi forestry site.
Forestry Land Developed into Lifestyle Residencial
2011–2019: Rural Lifestyle Residential Development in Karaka, South Auckland
PRC undertook a series of rural lifestyle residential development projects in Karaka, South Auckland, comprising three stages:
Stage 1, BushLack Way: PRC subdivided 65 ha of land, developed and built rural lifestyle dwellings, and successfully sold all the properties.
Stage 2, Batty Road: PRC subdivided 50 ha of land, developed and built rural lifestyle dwellings, and successfully sold all the properties.
Stage 3, Linwood Road: PRC subdivided 27 ha of land, developed and built rural lifestyle dwellings, and successfully sold all the properties.
2020–Ongoing: Medium-Density Apartment Development in Auckland City Fringe
From 2020 onwards, PRC strategically shifted its business focus to medium-density apartment development in the Auckland City Fringe.
Currently, PRC is focused on the 98-apartment development project at 15 Nugent Street, Grafton.
Both Resource Consent (RC) and Building Consent (BC) have been granted and remain valid through to the full completion of the project.
The 15 Nugent Street project is shovel-ready, with all preparations in place to commence construction shortly, subject to securing the required project loan.
