Those problems included:
- Defaults on settlements by pre-purchasers;
- Delays getting council inspections completed;
- Hold-ups achieving code compliance certificates;
- Delays on titles being issued by Land Information New Zealand;
- The economic downturn;
- Previously high interest rates.
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.
Housing project Hobson Green (centre) at 133 Clark Rd, Hobsonville Point, Auckland: six companies which failed owing $20 million-plus were connected to this scheme, including builder KBS Construction. Photo / Brilliant Stone
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 Amaia apartments are a new development at 48 Esmonde Rd.
The six failed companies are:
- KBS Construction: owes $9.4m to trade creditors and $130,000 to the Inland Revenue Department (IRD);
- Hobson Green: owes $9.5m to the IRD and $1.5m to unsecured creditors. Clearwater Capital Partners Direct Lending Opportunities Fund LP of Hong Kong, the IRD and Greenlane’s Oxford Finance are named;
- Henderson Green: owes $5.7m to IRD and a further $4.3m to unsecured trade creditors. Mercedes-Benz Financial Services New Zealand of Newmarket is named;
- Pooks Green Development: owes $1.6m, $124,000 to the IRD alone;
- South Pacific Green Development: owes $842,000 to unsecured creditors;
- Swanson Project: owes $233,000 to the IRD.
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.”
Falcon Green, a housing scheme at 1 Falcon Crescent, Hobsonville, Auckland, developed by Brilliant Stone. Photo / Brilliant Stone
Brilliant Stone lists Auckland projects as:
- Falcon Green, 1 Falcon Crescent, Hobsonville, where units start from $1.1m;
- Amaia Living, 48 Esmonde Rd, Takapuna;
- Hobson Green, 133 Clark Rd, Hobsonville;
- McLeod Green, Te Atatū, homes starting from $859,000;
- G.N.R. Green, Henderson, homes starting from $799,000;
- Henderson Green, Henderson Valley Rd, Henderson;
- Avon Village, completed 2019, Kāinga Ora;
- Hobsonville’s Scott Point houses, completed in 2019;
- 619 Swanson Rd, completed in early 2021 for Kāinga Ora;
- 122 Pooks Rd, Ranui, completed in early 2021;
- Henderson’s 6-7 South Pacific Place, completed in 2021.
Brilliant Stone says projects coming soon are:
- 45-48 Royal Rd, Massey
- 53 Schnapper Rock Rd, Schnapper Rock.
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.
Auckland Transport CEO Dean Kimpton. Photo / Jason Oxenham
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.
Amaia, where real estate agents are advertising many units as well as the childcare and gym business. This apartment project is at 48 Esmonde Rd, Takapuna.
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.
