Kiwi developer Roger Coulson has revealed to OneRoof why he stepped in to save Beachcroft Residences, the multi-million-dollar apartment block that was abandoned halfway through its build, leaving buyers in the lurch.
Construction on the troubled six-level waterfront development in Auckland's Onehunga was halted last year after costs more than doubled to a reported $85 million. The original developers were forced to pull the pin on the project, which began in 2016, and it was unclear if the some 50 people who bought off the plan would ever get their deposits back.
Enter Roger Coulson, a 30-year veteran of the property development and investment sector, who told OneRoof in an exclusive interview this week that the revival of the apartment development was a “warm, good-feeling story”.
He revealed that Teak Construction, the main contractors on the 85-unit Beachcroft Residences, approached him with the idea of taking over the project. “It was an attractive opportunity from day one. Working with the incumbent builder, we had an insider view,” Coulson told OneRoof.
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“However, during due diligence, we discovered it was a lot more expensive, so we reduced our offer. We lost it, someone else offered on it, but during their due diligence they withdrew and we got it back. My first time on-site was March last year.”
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Confidentiality clauses prevent Coulson from revealing the purchase price on the semi-completed project, which has just settled. He said he had not met the original developers, Anne and Bruce Clegg, of Erson Developments, but had instead negotiated the deal with project manager Matt Currie, of Crux Partners.
Coulson said he got to know Teak Construction as they were pricing another project for him. They had initially asked if he would be interested in a joint venture for Beachcroft Residences.
“That was 15 months ago. They decided not to go ahead - they want to be in construction not development - so then it was me in my own right,” he said.
Coulson, the former CEO of property development and investment company Starline who now heads his own property advisory company CMPL, said the project was backed by wealth management fund Alvarium, which, through managing director Andrew Williams, has property interests.
Building on Beachcroft will restart next month, with a target completion date of December 2024.
Architects’ renders of the finished apartment interiors. Photo / Supplied
The original developers Anne and Bruce Clegg of Erson Developments, shown here in 2016. Photo / File
Marketing for the apartments starts this weekend, but Bayleys agents Jack Davies, Glenn Baker and Brittany Broadbent have already reached out to the 50 buyers who bought off-the-plan at Beachcroft in the early days of the project. Davies estimated about 15 buyers had re-purchased.
Coulson said it was “a warm, good-feeling story” to offer the apartments back to these early buyers. “One couple I spoke to are absolutely rapt, they’re pretty happy. Glenn [Baker] did a terrific job the first time around, so he’s had the pleasure to tell [buyers] ‘it’s back on’. The support of Glenn with the original purchasers, that’s made a huge difference. He’s kept a relationship with them and they came back.”
When it was planned, the project qualified as one of the government’s special housing areas because 10% of the homes were classified as affordable for first-home buyers. Now, after discussions with Kāinga Ora, Coulson said he had more than doubled the number to 20, with one-bedroom homes going for $550,000 and two bedrooms for $760,000. “They’re enormous apartments, with big decks, the best buys. Today they would value at $200,000 more.”
Davies said other apartments were “still competitively priced”. For a limited time, prices for a one-bedroom apartment with a carpark start at $670,000, two-bedroom apartments with a carpark start at $875,000, while a three-bedroom apartment with a carpark is from $945,000.
Coulson said that the building was in as good a condition as it was when builders Teak Construction stepped away from the project last year, wrapping the building in protective plastic before they exited.
“There’s very little remediation, it’s in amazing condition for a project that’s not finished,” Coulson said.
An artist's impression of what the development was supposed to look under the original plans. Photo / Supplied
The only planned change to the design is to upgrade the cladding to a new aluminium tile, what he called “the Rolls Royce of cladding”. Early marketing for the apartments promised views, tall 2.6m ceiling heights and generous glazing, with high quality finishes that included engineered stone kitchen benches, timber floors and full tiled bathrooms. Coulson said those specifications had not changed.
And while he was introduced to the project by Teak Construction, Coulson said he won’t be using them as head contractors. Instead, project management company Shorcom Ltd will source the sub-contractors and Strategic Properties, a company associated with Alvarium, will manage the project.
Beachcroft Residences include a residents’ garden and barbecue area on the podium level. Coulson said he was in negotiation with a big-name chef to take on the restaurant tenancy in the building and would announce more details in mid-July when the company hosts an open day for buyers.
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