Construction firm appointed to complete half-finished Napier apartments amid death of developer

The Raffles Apartments project in Napier has been at a standstill for about five months. Photo / NZME

A construction company has been appointed to complete the half-finished Raffles Apartments project on the edge of the Napier CBD – amid an ongoing receivership process and the death of the developer.

Developer Malcolm Herbert was behind the project to build 30 units in a four-storey building in Raffles St. He died of natural causes in early February.

The half-completed project has been at a standstill since his construction company, Herbert Construction Ltd, went into liquidation in September.

Thorn Place Trust, of which Herbert was a trustee, owns that building and also went into receivership last September.

Receivers of the trust have now appointed a Hawke’s Bay construction company, Gemco, to complete the project instead of selling the development half-finished.

It is understood that decision was made in collaboration with a financial backer involved in the development.

Gemco managing director Darren Diack said a lot of work was required to complete the apartments and to fix work already done.

He said they were now carrying out a full assessment of the site.

“We have won the contract to complete the building, but it is in stages and each stage has to be priced up,” he said.

“So, at this point, we only have a contract to do a full assessment on what it will cost to complete.”

Gemco has been appointed to complete the project. Photo / NZME

He said after they had a clearer picture of the full cost, they would require the go-ahead to move to the next stage and complete the full build.

“We hope within about three or four months we might get the go-ahead to complete it to Gemco standards.”

Gemco is based in Havelock North and has delivered significant projects in Hawke’s Bay over the years, including the MTG building in Napier and the Hastings Health Centre.

Units are still up for sale for the Raffles Apartments development, which is being marketed by Bayleys.

The project was previously planned to be finished by February.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.