Hobson Green (centre) at 133 Clark Rd, Hobsonville Point, Auckland. Six companies which failed, owing $20 million-plus, were connected to this housing project, including builder KBS Construction. Photo / Brilliant Stone
Six Auckland property development businesses which failed, owing $20 million-plus, completed about 200 housing schemes, particularly in the city’s northwest, its chief said.
Edison Xin, managing director of Takapuna-headquartered Brilliant Stone, which is the over-arching entity, said those six businesses had contributed significantly to the city’s housing stock, particularly for first-home buyers.
Brilliant Stone isn’t in liquidation as it doesn’t own the projects.
Xin cited a range of problems.
These led to liquidators being appointed by himself and fellow shareholder/director Wei Liu to KBS Construction, Henderson Green, Hobson Green, South Pacific Green Development, Pooks Green Development and Swanson Project.
Those problems included:
Xin said defaults had occurred on about $20m of properties on various Auckland developments.
Hobson Green at 133 Clark Rd in Hobsonville Point was more than 150 residences, built by one of the failed companies – KBS Construction. Xin said that was completed.
Duplexes, apartments, standalone homes and terraced places were developed and advertised from $899,000.
Takapuna’s 104-unit Amaia was one of the larger apartment projects, built on a waterfront site at 48 Esmonde Rd. Twelve buyers had not settled pre-purchase agreements, Xin said.
On Friday, liquidators at Khov Jones released initial reports on the six failed businesses.
Directors and shareholders Xu Xin (also known as Edison Xin) and Wei Liu (also known as Wayne Liu) appointed Khov Jones on October 3.
The six failed companies are:
One owner of a business claiming money from KBS Construction contacted the Herald, distressed about the liquidations and amounts owing.
He raised concerns about the toll this could take on an already stretched sector under big pressure.
He has been trying to contact other subcontractors to let them know they must submit claims in the hope of getting something.
“What I’m hearing today is a lot of subbies didn’t know they were in liquidation and haven’t filed with the liquidators,” the supplier said.
“It’s only from your article and me ringing them that they are aware. I’m trying to get a list of all the subbies and make sure they know.”
Brilliant Stone lists Auckland projects as:
Brilliant Stone says projects coming soon are:
In 2020, prominent council official Dean Kimpton was a consultant to Amaia’s developers.
The former Auckland Council chief operating officer and ex-managing director of AECOM is now Auckland Transport’s chief executive.
Kimpton told the Herald that consultants on the Amaia scheme were Jasmax, Tonkin and Taylor, Campbell Brown Planning and his own Tuhura Consulting.
He said in 2020 that Xin and Liu were migrants from China and had been active previously in New Zealand’s property sector.
Kimpton particularly cited Hobson Green at Hobsonville Point.
Kimpton said Wayne Liu and Edison Xin were both New Zealand citizens.
Xin had lived here since 2002, having graduated from Otago University and Liu, who graduated from Massey University, had lived here since 2005, Kimpton said.
Amaia was to be a $350m scheme with 231 units.
Kimpton said the development platform would be 8m to 9m above sea level “and the impact of sea-level rise is therefore not considered an issue. The site and minor cliffs around the perimeter are well-vegetated and geotechnically sound”.
Amaia rose on the 2.1ha site that KBS Capital bought from Harbourside Church in 2019 for $40m.
Xin said today the situation with the voluntary liquidations was “difficult for everyone” but he asked for consideration of the challenges the business was facing.
“We are not like others who simply walk away. We are doing everything we can to manage this responsibly and rebuild.”
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.