Part 8: Lakeview's relationship with the news media
The $2 billion project's media history makes interesting reading
Analysis.
This investigation, funded by Crux paid subscribers, examines how a $2 billion Australian luxury property development in the centre of Queenstown started life as a “risk free investment” by the Queenstown Lakes District Council. In ten parts we will tell the story of how a large piece of ratepayer owned prime real estate, valued at $42 million in 2017, was turned into a black hole that so far has cost ratepayers over $100 million, increased rates and may not get built. Crux also acknowledges the role of Google’s Pinpoint investigative journalism tools and will publish, in the public interest, each part without a paywall three days after paid subscribers receive this content.
Real estate developers and sales teams have always fancied themselves as being good at their job - and generally they are. It’s a tough gig. Either you are good or you are out.
But sailing close to the wind is a skill that many real estate developers also value.
We get it. Things don’t sell themselves. But there are two golden, unbreakable rules about dealing with journalists.
Tell the truth.
Don’t ignore valid questions that affect you or your target community/customers.
The first point is obvious - the truth always comes out in the end and in that case any “untruths” told in the past can be remarkably sticky and problematic.
The second point is more interesting. Not replying to a news media question is becoming a favourite tactic of some organisations - but it carries huge risks.
For example:
If we publish a story that an organisation objects to, but we’ve asked them for feedback or answers in advance with no reply, then they have little or no grounds to complain.
Honest projects and companies tend to answer reasonable, relevant questions.
In the case of Lakeview the target community (Queenstown), where the $2 billion towers are supposed to get built, is very important. It’s local QLDC rates that have funded almost everything so far ($100 million at least) and it will be local ratepayers who have to stomach an eventual $153 million loss if the project goes ahead.
So in what universe did the Australian developers, 94 Feet of Melbourne, think it was OK or wise to trust the QLDC and Queenstown Chamber of Commerce with 100% of their community relationships?
Lakeview’s Media History.
To be clear, we don’t know yet if the Lakeview project is dead, but it certainly is not showing any signs of life.
Let’s follow the breadcrumbs of what they’ve been saying in public, looking for clues as to the project’s future.
In the early, golden days of the project Lakeview was a bit different. It was there to provide jobs (not really needed in Queenstown - our unemployment rate has always been relatively low) affordable accommodation (always needed) and a community hub (often promised - rarely delivered.) And car parking (subsequently removed.)
The Otago Daily Times has always been kind to Lakeview, with few if any negative points being reported. This headline is from December 2021.
Here’s an example of the early hype (but still on the 2025 website) in this case from the Queenstown Lakes District Council.
“The fundamental purpose of local government is to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future. Optimal use of the Lakeview land goes to the core of that purpose, providing both financial and non-financial benefits for the community. The Lakeview programme has particular significance given that current rates-based approaches to investment are limited i.e. the release of investment property to bring down council debt, while also enabling wider economic and social benefits (including significant private sector investment) for the Queenstown Lakes District community.
Some of the benefits of the proposed development are outlined here:
A commitment from QLDC to provide the Queenstown Lakes Affordable Housing Trust 5% of gross land proceeds, realising the Councils material infrastructure investment in high value serviced (improved) subdivision lots and their development potential;
Opportunity to support the Queenstown town centre, and to deliver an integrated urban development form within walking distance of the Queenstown town centre;
Indirect non-financial benefits associated with delivery of a variety of housing options and diverse residential community including innovation and commitment from the developer to deliver a mixed outcome of activities, built form and price points;
Forecast total private sector investment in the Lakeview land of circa. $1B over 12 to 15 years. By the end of the development, spending will generate annual economic impacts equal to regional GDP of $100M, employment for 1,800 people and house hold incomes of $52M.”
It’s now obvious that many if not all of these goals simply aren’t going to happen, even if Lakeview is built. Times have changed, and ratepayers’ cash has already been lost - not made. The Queenstown Lakes Community Housing Trust told Crux today that they received some money in 2020 but nothing since. If the project goes ahead they’ll get any money in instalments over 20 years as land blocks are released.
Just like the QLDC, the developers, 94 Feet of Melbourne, feel more comfortable with flowery words than hard facts. This is from their current website which has not changed in style since back in 2017/2019.
“Te Taumata | Lakeview is a visionary project by Ninety Four Feet and Centuria. It is a testament to our unwavering commitment to redefining urban living in Tāhuna | Queenstown, Aotearoa | New Zealand, and beyond.
For us, Te Taumata | Lakeview signifies a passion translated into purpose. It will embody a novel era of considerately crafted and ecologically mindful living. Functioning as an epicentre for neighbourhood connectivity, Te Taumata | Lakeview is poised to emerge as a hub, showcasing world-class retail, hospitality, entertainment, art galleries, and residences seamlessly intertwined in perfect balance. We are curating a community beyond mere construction; the locale will nurture diversity and a deep sense of belonging interwoven with the existing cultural tapestry of Tāhuna | Queenstown. “
No mention of co-living or co-working spaces or worker accommodation - but sharp eyed readers will have noticed that Centuria is still mentioned on the Lakeview website - many weeks after they withdrew their support.
The Lakeview PR team have been busy in Australia trying to stir up sales - take this LinkedIn post from February 2024.
Note the “almost $NZ100 million in sales” - which in New Zealand somehow saw the “almost” lost in translation.
The Lakeview developers have only spoken with NZ mainstream or “perceived as friendly” journalists, but the wheels started to come off this plan with Stuff last year.
February 2024. Stuff Journalist Jonathan Killick. Headline. “This developer sold $100m in luxury Queenstown apartments without even listing.”
April 2024. Stuff Journalist Debbie Jamieson. Headline “Queenstown development: ‘Astronomical’ prices for Airbnb-style apartments.”
September 2024. Stuff Journalist Debbie Jamieson. Headline: “Housing workers a problem for $2b Queenstown development.”
In fact Debbie Jamieson’s latest piece carries a lot of potential clues as to the developers gradually going (very) cold on their Queenstown project.
These September 2024 quotes certainly don’t carry any resemblance to the rosy and optimistic reports delivered to the QLDC’s Audit, Finance and Risk committee in recent months this year by council Lakeview project boss Paul Speedy.
Take a read:
“Ninety Four Feet managing director Dean Rzechta said he expected half of the 224 apartments in the first stage of the project would be sold by December (2024).
“That effectively translates to a bankable project and we can start construction,” he said.
He hoped to begin by mid-2025 but finding housing for hundreds of workers was proving a challenge.
“It’s not a new issue. Everyone talks about it and across all industries. How do we solve that?” Rzechta said.
Rzechta said there were strong sales of “cheaper stock” in the first stage Lakeview apartments, which ranged in price from $750,000 for a studio to a 475m² penthouse priced at $25.5 million.”
Debbie Jamieson. The Press/Stuff. September 27, 2024.
What we learn from this article and the quotes from Dean Rzechta are:
The project was not yet “bankable” in September 2024.
Other smaller developers have solved the worker accommodation challenge relatively easily buy buying or leasing houses - but that’s not on Dean Rzechta’s radar.
Lakeview sales so far are at the lower end of the price spectrum - “cheaper stock.”
It would be no accident that Mr Rzechta let his guard down for this Stuff interview. Was he trying to tell us, or the QLDC something?
Sales figures for Lakeview (or reported sales figures) during 2024 went up to $150 million but don’t seem to have shifted at all in 2025.
When Crux reported the surprise 25% Centuria exit in June this year, the Property Editor of the NZ Herald, Anne Gibson, when direct to 94 Feet with some questions about the lack of construction activity on the Queenstown Lakeview site.
Here’s what she was told.
“Charmaine Balchin, 94 Feet development manager in Melbourne, said the site might look quiet but activity had occurred there.
“Bringing a project of this scale to life involves much more than simply starting construction,” Balchin told the Herald.
“Since 2021, we undertook the extensive work required to properly stage the development, obtain resource consent for the first stage – a significant and time-intensive process – and build the brand and campaign needed to support presales and funding.
“We also had to co-ordinate with [the] council’s major infrastructure programme, which was essential to unlocking the site.”
That was a programme with a value of about $70 million, Balchin said.
All of this was typical for a project of this scale and complexity, she said.
Balchin said 94 Feet was in a strong position, with presales of $150m, finance secured, the builder contracted, two building consents in place and site activity due to start “shortly”.
As for Centuria, the shareholding change reflected a natural point in the project’s transition from planning into delivery.
“From here, we’re focused on executing the vision with momentum,” Balchin said.
Source: NZ Herald, July 2, 2025.
So that’s where we will have to leave it.
Will “executing the vision with momentum” happen? Or will Lakeview slide gently off the Queenstown stage - leaving ratepayers with a $100 million bill that ironically will only be made worse if the scheme goes ahead, using a 2017 land valuation with a 20 year future payment plan.
At least if the project fails we can sell the land at its 2025 value - with cash up front.