Millionaire to complete Kensington Park homes

Auckland's largest failed housing project is about to rise from the ashes after a multimillionaire negotiated to buy it.

John Sax, an industrial land developer who also owns Rotorua superlodge Treetops, said he would buy Orewa's partly built Kensington Park.

Work stopped last year after just 50 of the planned 750 houses were built and the $500 million project went into receivership in September.

Residents yesterday said they were delighted with the sale.

Jan Newbould, who has lived there with husband Pete since June 29, said residents could once again be proud.

"It will be nice to hold our heads up again. It's had a bit of a knock," she said of the park's reputation after the early failure.

Raewyn and Gary Thomas paid a $70,000 deposit for a new apartment but, when work stopped, it was left only partly built.

Mrs Thomas said she was thrilled to hear that the failed development would rise from the ashes.

The couple have been renting a two-bedroom apartment at Kensington Park for $400 a week.

Mr Sax has an unconditional agreement to buy the 15ha Orewa property project, settling in mid-October.

He has vowed to complete the houses and apartments but said he would build at nowhere near the intensity planned by Kensington Group's Patrick Fontein. Instead, he would leave more open space.

The 64 partly built houses and apartments would also be completed. Mr Sax refused to say what he paid receivers KordaMentha but expected this to be revealed in a few months.

All work stopped after developer Patrick Fontein was hit by poor sales and the credit crunch, leaving partly finished houses and many angry buyers.

Kensington Park Properties collapsed owing $57 million to three financiers and more than $4 million to mainly local subcontractors.

The biggest debt was $41 million, owed to first mortgagee BNZ, but Mr Sax said he had no involvement in the receivership.

Mr Sax is executive director of Southpark Corporation, Auckland's largest industrial land owner.