Business reporter for the NZ Herald

Springpark owes Singapore lender $26.8 million

An artist's impression of Springpark, Auckland's first proposed mass affordable housing project.
An artist's impression of Springpark, Auckland's first proposed mass affordable housing project.

The company behind Tony Gapes' troubled Springpark housing project owes a Singapore lender $26.8 million, according to receivers.

Gapes' Panama Road Developments was working on 140 residences near Auckland's Sylvia Park but was placed into receivership by its Asian financier in early December.

Receivers Richard Simpson and David Ruscoe, of firm Grant Thornton, stopped work on the project and said they would refund the depositors who paid $7.3 million up front for a new home.

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Springpark is in receivership

Simpson and Ruscoe's first report, released this week, said Singapore's Koi Structured Credit Pte is owed $26.75 million.

Unsecured creditors are claiming $1.4 million and the receivers say they are aware of a separate former financier which is also making a claim against the company.

The assets of the company and an associated trust include 4.19 ha of land in the Auckland suburb of Mt Wellington, 20 partially completed units and a residential property also in Mt Wellington.

The receivers also say the firm has $4.26 million in a trust account which will be returned to Koi.

"At this stage it is too early to assess whether or not any funds will be available to meet the claims of the unsecured creditor," Simpson and Ruscoe said.

- NZ Herald

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