Amaia Apartments is at 48 Esmonde Rd, Takapuna.
In an indication of the extremely sorry state of the property market and the deepening recession, accountants appear to be one of the few making money from big Auckland apartment projects.
Builders of Takapuna’s new $350 million waterfront Amaia apartments, as well as Onehunga’s $85m Beachcroft Residences, are in financial trouble.
Three insolvency practitioners are appointed to businesses working on those two schemes worth a combined $435m.
Accountants at Khov Jones were appointed to KBS Construction on October 3 by its shareholders Xu Xin and Wei Liu.
The company is building the multi-level gold-coloured Amaia on Esmonde Rd on Auckland’s North Shore.
Related businesses KBS Capital and Brilliant Stone show no insolvency action.
Subcontractors expressed fear about payments owed for work on Amaia, with plans for a further 15 buildings up to 16 levels.
At Onehunga’s Beachcroft, BDO’s Rees Logan and George Bannerman have now also been appointed to the nearly-finished units, following McGrath Nicoll’s appointment, which was reported yesterday.
BDO are joint and several administrators. McGrath Nicol are joint and several receivers and managers.
Beachcroft Residences has 88 units and Amaia has 88 but with plans to go to 500.
At Amaia, a creditor of KBS Construction told how, for many months, his business had been trying to secure payments for work on the block near the on-ramp to the Southern Motorway.
He was surprised and disappointed to see Khov Jones’ appointment yesterday and wondered how many other subcontractors and suppliers to Amaia were seeking payments.
Many Amaia apartments remain unsold.
Real estate agents have 56 listings on Trade Me alone for Amaia at 48 Esmonde Rd.
Prices remain elevated, at more than $1m for a two-bedroom unit.
Operators are also being sought for Amaia’s planned childcare centre and gym.
“KBS Construction is currently working on two projects in Hobsonville: Hobson Green and Scott Point Residential,” the business says.
The Herald has requested comment from the company and the liquidators.
One buyer who paid a six-figure deposit for a Beachcroft apartment is worried about settling, saying she is investigating how to escape the contract.
With so much trouble since that scheme was launched in 2017, the buyer fears what might happen if full settlement of nearly $1m is sought.
However, Andrew Grenfell of McGrath Nicoll is vowing to get Beachcroft Residences finished.
All the sales contracts will fall due to settle once code compliance is issued.
Grenfell is examining what remaining work is required to complete the project.
The site would be temporarily closed while that assessment is undertaken, he said yesterday.
“The current intention remains to bring the project to completion and deliver the finished development as soon as practicable,” Grenfell said.
He did not answer a question about how many units are sold, with deposits paid.
But he did say all those deposits were safe because they are held in a lawyer’s trust account.
“Once the project is completed and the required consents issued, the current intention is to settle the presales,” Grenfell said.
Meanwhile, in a separate series of actions, Inland Revenue advertised in the Herald today applications for liquidation of Prestigious Builds, Guardian Homes, Complete Construction and Zodiac Construction.
Application hearings are to be held at the High Court at Auckland on October 23 for the four companies.
Company liquidations are up 26% on last year, according to credit reporting agency Centrix.
Construction remains the leading industry for company liquidations, with 761 firms liquidated in the past year – a 38% increase.
Trade Me is now showing 95 properties under mortgagee sale nationally, the most expensive being two Ellerslie titles where consent was issued for a 56-unit apartment scheme.
Other troubled big apartment schemes:
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.