Orewa project gets new lease of life

Southpark Corporation executive director John Sax plans to build fewer houses. Photo / Dean Purcell

Initial sales contracts are being signed at the Kensington Park residential housing project at Orewa.

A year ago, work stopped when businesses developing the project went into receivership. In June property developer John Sax said he would buy the project and carry out less intensive work than originally planned.

Helen Wreaks, the park's marketing and communications manager, said that in the last week buyers had signed deals to buy seven apartments at the $500 million project at Orewa.

The buyers will pay $430,000 to $600,000 for the apartments before the end of this year, she said.

Deposits have been taken on the partially developed units and Wreaks estimated about 120 people would be living in the park by Christmas.

"The total sales over the past week was $4 million from seven homes. Interest certainly is picking up and confidence is on the increase."

Total sales since July 1 were $10.3 million.

"Presently there are 50 homes occupied by around 110 residents," she said.

New agreements on "SeaView" houses - four-bedroom low-maintenance places on the hilltop overlooking the park - are also being sold, she said. Heads of agreements had been signed on five of those houses in the last fortnight, including an $800,000 property being used as a show home, she added.

"People will be in the first row of SeaView houses by Christmas. Settlement can't take place until mid-October and there's some finishing to be done."

Some of the SeaView houses further up the hill would sell for more than $1 million, Wreaks predicted.

The latest deals are a big turnaround for the property. This week, Wreaks said landscaping work was under way and she is expecting builders back on site soon.

Tenders are being let to finish the indoor pool, a particularly irksome aspect for the handful of residents who have moved in. Last year, those people were angry about their unfinished pool and they vowed to finish the building themselves. No work resumed but Wreaks said she expected the pool would be open by Christmas.

"We're waiting for the hammers to start," she said.

"Lakeside" apartments are also being marketed and Wreaks said the original plan to develop 12 apartments in three buildings would go ahead.

"We're going to be marketing those as soon as John Sax takes over," she said.

Last September, businesses fronted by Patrick Fontein which were developing the mega-project went into receivership. Sax, an industrial land developer who owns the luxurious Treetops near Rotorua, has signed an agreement with KordaMentha to buy the project and revive it.

Wreaks said the property was in much better shape after the landscaping and on Monday botanist and TV star David Bellamy was visiting to look at puriri, plant kauri and visit a neighbouring bush reserve.

Wreaks said matters had been put to rights with many disgruntled buyers who had paid deposits on houses which were not finished.

Those who had not already received their deposits back would get their money soon, she said.

Wreaks is a former manager of the Puriri Park holiday park and camping ground which for many years operated as a tourist and residential property. She has been working on the site for the last six years.

Three months ago, Sax said the site looked "like a bomb site with a lot of unfinished work. Residential is not really our thing so this is a diversion".

Sax is expecting extremely low levels of residential construction will turn the park into a goldmine for him. Demand for new housing could eventually outstrip supply, he believes.

"It's a very uncertain and difficult time and one has to take a medium to long-term view. There's been a huge fall in residential building activity with the numbers halving. But we still have to have activity in the sector and there's still the trade-up factor. We don't expect any massive progress, just good steady progress. We need to make sure we're not too ahead of the market with good, conservative prudent development," he said.

Fontein planned to build 750 apartments and houses but only 65 were built. Sax said in June he would complete walkways, reserves, a lake, landscaping, shops and the residents' pool complex.

He said he also plans to finish the three existing blocks of apartments where work stopped last year. But he plans to abandon Fontein's grand vision and build far fewer houses, referring to "mothballing" parts of the plans.

KordaMentha's six-monthly update on Kensington Park Properties, whose sole asset was the park, said no money was available for unsecured creditors. The May 13 report said BNZ was owed $42 million plus interest.

Buyers were disputing their obligation to settle, KordaMentha said then. The bank was funding ongoing receivership costs which stood at $1.7 million between September 12 and March 11.

KENSINGTON PARK
* Corner Puriri Ave/Centreway Rd.
* A 15ha residential development.
* Being bought by John Sax of Southpark Corp.
* Deal due to settle next month.