4 Dec 2015

Major Auckland housing project calls in receivers

6:04 pm on 4 December 2015

The developer behind one of Auckland's biggest affordable housing projects has gone into receivership.

Developer Tony Gapes was building 450 apartments and terrace homes at Springpark in Mt Wellington, which were selling from $320,000.

Part of a housing development in the Tamaki area in Auckland.

A major Auckland affordable housing development has gone into receivership. Photo: RNZ / Kim Baker Wilson

Springpark is a 10.5 hectare development on Panama Road.

Receiver Dave Ruscoe from accounting firm Grant Thornton has confirmed he was appointed to manage Panama Road Developments Trust yesterday afternoon.

That was after Hong Kong investor, Koi Investment Partners, called in its debt and the developer was unable to repay it.

Mr Ruscoe would not say how much was owed to Koi. He was still working through the details and more information would come to light in his receivers' report.

Mr Gapes first revealed plans in 2013 for the project which has since been affected by a series of delays.

The developer went into receivership in July last year, after it was unable to repay another lender to the project.

The company survived that after another lender was brought in. It is not known whether that was Koi Investments, which sparked this latest receivership.

All 150 people who had paid deposits for homes that are yet to be built had been notified, Mr Ruscoe said.

Their deposits were being held in a secure trust which the developer could not access. But it was unclear if the creditor, Koi Investments, could access that money.

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