KEY POINTS:
The company behind a half-billion-dollar luxury housing development north of Auckland is understood to be in financial trouble, with contractors claiming it has gone into receivership owing them millions of dollars.
The major contractors on the 800-house, $560 million Kensington Park subdivision at Orewa, north of Auckland, say
work ground to a halt five weeks ago.
They say 30 to 40 contractors are owed between $5m and $6m.
One contractor said he was at the site on Friday afternoon just after the receivers "arrived and introduced themselves to the staff". He said he was told they were "from the bank".
Another told the Herald on Sunday he had been informed by a senior figure in the construction company that receivers had been called in.
Kensington Park's financiers include the Bank of New Zealand, but a BNZ spokesman could not confirm yesterday that the bank was behind the receivership.
The director of Kensington Park Properties is Patrick Fontein, chairman of the Green Building Council. The Herald On Sunday called Fontein at his Remuera home, on his mobile and wrote to his email address but he would not comment on the reports.
Kensington Properties is also developing a large housing project near Huka Falls. The Herald on Sunday understands work also stopped on that project some weeks ago.
A contractor said some companies had been working on the Orewa site for two years and many were suffering financially. One earthmoving company involved with the project has been put into receivership.
The contractor said "subbies", many of them from the Rodney area, were owed between $100,000 and "nearly $1m" each.
"We will have to borrow to fund our company through this if we don't get paid. But some companies will not survive it. The feeling among some of the smaller companies is pretty scathing. But there's no point being bitter and twisted with any person."
He said creditors had expected the receivership announcement for the past few days. He was hoping to work with the receivers for a positive outcome and was full of praise for the development, which he described as "fantastic".
A few weeks ago, Kensington Park won an international property award in Singapore for its design, architecture and marketing.
The development features a 5.5km walking trail, boardwalks through bush areas, four pools, a lake and a gym.
It will be the first community in the country to have fibre optics delivering phone and broadband services to every home.
About 60 homes have been completed and the Herald on Sunday understands $42m worth of houses under construction have been bought.
It is believed Fontein had been trying to refinance the development before the receivers were called in.
