The builder leaving a partly finished $85 million 85-unit Auckland project is worried about buyers who paid deposits for new homes there.
Wayne Birchall, managing director of Teak Construction Group, which is leaving Onehunga's Beachcroft apartments, has voiced concerns about those who put down thousands of dollars in deposits.
"The major impact is really on the people who had already bought units," he said, referring to buyers dating from 2017 who hoped units would be ready last decade.
Instead, all work has now stopped, very little happened in the past year, units are unfinished and the developers are advertising the partly finished plastic-covered block for sale.
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The block is at 98 Beachcroft Ave, Onehunga, and was previously being marketed by Bayleys.
Anne and Bruce Clegg were developing the units via their Erson Developments but a statement issued this week said that had ended.
Matt Currie of Crux Partners, now project managing, said a buyer was being sought to complete the entire scheme.
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"All construction work has ceased and Teak Construction Group will now begin the process of demobilising from site," Currie said on Monday night.
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Advertise with NZME.The Cleggs said the termination of the contract was because of Erson's issues "and is not due to any default or failure by Teak".
Birchall said delays were not unusual on developments of the scale of Beachcroft, but the project had been "particularly frustrating".
"Erson's decision will no doubt be a tough pill to swallow given the further delays it will involve," he said today.
"We've had very little activity on site for the past year waiting for Erson to work through the design and consenting issues, so while their decision to officially put Beachcroft on hold is disappointing it won't have a significant impact on our staff or subcontractors given we had already redeployed them on other projects.
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All the subcontractors on the project had been paid already, so thankfully that is not an issue, Birchall said.
The project was initially described as being a $45m one but that escalated to $85m in the most recent media coverage, indicating massive cost blowouts.
ANZ is understood to have funded much of the work to date, along with the Cleggs' own resources. A party close to the project expressed concern from the Cleggs, saying they had put considerable resources into the scheme.
The Cleggs could not be reached for comment.
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Advertise with NZME.Birchall is hopeful things can be resolved and work continues.
"Once the design and consenting issues are sorted out we will be ready and willing to pick the tools back up with a new developer, so we will just wait and see how it all plays out. Having come this far we would like to see this project through to its end," the building boss said today.
"We have a few weeks now to clear out the site and some final details to work through with Erson," Birchall said.
