Millionaire businessman linked to troubled Albany project

One of New Zealand's most controversial citizens is linked to the 50-unit Albany project where financial problems were revealed this morning.

The Herald reported today how an unknown mortgagor is now in control of stage two of Silvermoon Park, Albany, leaving buyers who have paid deposits for 50 units uncertain and one lawyer acting for a buyer, Nick Kearney, saying he needs to protect his client's $60,000 deposit on a $600,000 unit.

The project has been the subject of extensive publicity in the two years, including William Yan's involvement and concerns over the quality of construction.

A Herald article from October 2015 reported how the project was originally called Albany Heights but was renamed Silvermoon Park.

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Last year, the Herald reported how the Albany development was linked to a tax haven company that triggered an alleged money laundering probe into Yan.

Since then, the Herald revealed how Yan agreed to forfeit nearly $43 million to settle a civil case into alleged money-laundering.

Lawyers acting for the developers of Silvermoon Park's stage two revealed a big bank has taken possession of the project to secure its lending - even though a big inflow of money is due shortly because buyers are due to settle.

A letter from lawyers acting for Marmande Property LP - involved in the almost-finished stage two of Silvermoon Park on Albany's Gills Rd - cites "financial difficulty" and acknowledges "client concerns".

Kearney, of Milford lawyers Schnauer and Co, got a letter from Marmande's lawyers at Jesse & Associates in Auckland, telling of financial issues with the second stage of Silvermoon Park.

"Due to issues with the builder and construction consequentially not having been completed as scheduled, our client is unfortunately in financial difficulty. The first mortgagee has taken over the development of stage two and have given notice that they have entered into possession of the mortgaged property being stage two," the lawyer from Jesse Scang Ty Nguy and Lichelle Lapworth said.