State house development hit by building firm's collapse

Housing NZ says it intends using existing contractors to complete the partly built homes. Photo / Martin Sykes

A builder's collapse has taken its toll on a Housing NZ Corporation subdivision in Auckland.

Andre Lipa, the corporation's acting director of assets, said a builder's liquidation affected a large group of state houses in the Three Kings/Mt Roskill area.

Tribro Construction has gone into liquidation along with three other companies including the Mitchell housing brand but no state money is expected to be lost, Mr Lipa said.

Tribro was building the new state houses in streets between Dominion Rd and Mt Albert Rd.

"Housing New Zealand Corporation is working with the liquidator of Tribro Construction to take possession of 14 units that Tribro are developing on a corporation-owned site in the Three Kings area," Mr Lipa said yesterday.

The corporation wants to take possession of the development and then finish it, he said, and is now in negotiations with liquidators.

"Our aim is to be back on site by early next week and use the existing subcontractors where possible to complete the work," he said.

The builder is also working on state houses elsewhere in Auckland.

"Tribro is also undertaking some modernisation work for Housing New Zealand which is paid for upon completion of the work," he said.

The new Three Kings/Mt Roskill housing units are almost finished on Hamon Ave, Duke St and Parau St.

"We pay as we go so we're not out of pocket," a corporation spokeswoman said yesterday. "We just want to carry on as seamlessly as possible."

Peri Finnigan of McDonald Vague has been appointed liquidator of Tribro Construction and Tribro Building Centre.

The parent company of Auckland's award-winning Mitchell Homes, which has built hundreds of houses since Brent Mitchell founded it in 1997, has also gone under.

Paul Sargison of Gerry Rea Partners has been appointed liquidator of Mitchell Builders Trustee Company which owns Mitchell Homes, a Master Builder headquartered on Springs Rd at East Tamaki. Sargison is also liquidator of the related Mitchell Developments.

Tomorrow, the first reports on both Mitchell and Tribro are due from the liquidators but creditors are not holding out hope of big payouts.

Mitchell Homes staff said the liquidations would affect many places being sold to investors and designed for Housing NZ Corp tenants.

Alan McKinstray, a Mitchell Homes project manager, was yesterday consoling clients whose house in Avondale was partly built.

Mitchell had about 14 houses under way in Auckland, he said, blaming the liquidations on big expenses incurred in building Mitchell's East Tamaki base and a show home at Karaka Lakes subdivision which is at the Manukau Harbour inlet on the Hingaia Peninsula in South Auckland.

David Reid, Signature Homes, Jalcon Homes and Mitchell Homes all put up display places to draw buyers.

David Anderson, selling Karaka Lakes, defended the Mitchell house, saying that it should not be blamed for the liquidation.

"Mitchell also had a big home centre in East Tamaki. You can't put it all on one house," Mr Anderson said.