A partly-built $85 million Auckland apartment block that was abandoned after cost blowouts has been saved by Kiwi developer Roger Coulson.
Coulson, the former CEO of property development and investment company Starline, said construction on the six-level Beachcroft Residences, on Onehunga’s waterfront, would recommence in July 2023, with a target completion date of December 2024.
Coulson’s ownership of the 85-unit apartment block is backed by wealth management fund Alvarium.
He has already reached out to the 50 buyers who bought off-the-plan at Beachcroft and who had been left in the lurch when the original developer, Erson Developments, was forced to abandon the project last year.
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Bayleys agent Jack Davies, who is marketing the relaunched Beachcroft Residences, said the buyers had been offered the opportunity to repurchase their apartments at their original contract price. “We are pleased to say that many of them have taken up the offer to date and the offer remains open and available until the end of July to all those who have previously invested in Beachcroft.”
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Davies said the new development “promises to be a modern and luxurious living space, designed to meet the needs and preferences of future homeowners”.
He said prospective buyers “can look forward to a range of meticulously-crafted apartments”. The revived development would incorporate “state-of-the-art amenities, stunning architectural design and unique lifestyle features”, including an on-site cafe/eatery, gymnasium and a central podium garden.
Coulson said in media release: “I am honoured to be part of this remarkable project and excited to deliver an exceptional living experience to our future homeowners.
“Our team is committed to creating an inviting community that blends contemporary design with a strong focus on facilitating quality lifestyles for its residents. We look forward to the construction recommencing in July 2023 and completing the finished apartments in December 2024.”
An artist's impression of what the development was supposed to look under the original plans. Photo / Supplied
Coulson is a property industry veteran and is currently CEO of CMLP, a property advisory firm involved in managing a variety of developments ranging from subdivisions to apartment developments and hotels.
The first Beachcroft Residences apartments were brought to market in 2016, with buyers advised at the time the development would be finished by mid-2019.
Erson Developments was owned by first-time developers Anne and Bruce Clegg. BusinessDesk reported last year they had been granted consent to build in a “special housing area” because at least 10% of the units were classed as affordable housing.
At the time one-bedroom units were asking between $595,000 and $620,000, with the larger three-bedroom units seeking up to $1.3 million.
The company missed its first promised completion date and brought on board outside help to steer the project to delivery.
However, Covid and an escalation in construction costs sank the development.
By early last year Erson Developments pulled out, telling buyers that delays and cost overruns had made the development uneconomic, with attempts to bring the project back into line failing.
The news left buyers furious and in the lurch, with some dubbing the block “Fawlty Towers”.
BusinessDesk reported that the project was initially budgeted for $40m, but it ballooned to about $85m.
Project manager Matt Currie, of Crux Partners, said in June last year that the remaining buyers of the pre-sold units would be released from their contracts and paid back their deposits.
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