The first receivers report for property developer Campbell Layne Kells failed project Soho Square reveals debts of more than $94 million.At the 1.3ha Auckland site on the corner of Ponsonby Rd and Williamson Ave, Mr Kells planned to build 53 apartments, 3
The first receivers report for property developer Campbell Layne Kells failed project Soho Square reveals debts of more than $94 million.
At the 1.3ha Auckland site on the corner of Ponsonby Rd and Williamson Ave, Mr Kells planned to build 53 apartments, 35 retails stores, offices and cafes with 1250.
Locals notoriously hated the development, on the site of the former DYC Vinegar plant, holding a mock pool party as a protest in the area dug for a carpark in March.
In December, NBR broke the news (print, December 4 2009) that receivers had been called in to the development by first mortgagee Australian-owned lender Fortress Credit Corp.
The affairs of four associated companies, Soho Square Development Limited, Ponsonby Mall Trust Limied, Pollen Developments and Crummer Trading Trust which are now in receivership were reported on together in one document Grant Thornton receivers compiled.
Strategic Finance has secured liabilities of more than $69 million for the project, while Fortress Credit Corp has secured liabilities of more than $23 million. Unsecured creditors are owed more than $1.17 million.
Grant Thornton receivers Tim Downes and Richard Simpson met with people involved in the project after being appointed to keep it ticking over, the first receivers report reveals.
“We met with the various contractors and consultants who have worked on the resource planning process in relation to the companies’ large land and buildings development in Ponsonby, to determine the current status of the project and to formulate a strategy to progress the resource consent process,” the report said.
“We have liased and set up new trading accounts, with various parties involved in the physical maintenance of the site. We have engaged a firm of structural and civil engineers to maintain the integrity of the site.”
Insurance for the site has also been arranged, and marketing begins this weekend by CB Richard Ellis, with a tender closing on 8 April.
Mr Kells remains a director of many further companies including his Marlin Group, Gulf Harbour Marlin, Takanini Industrial Limited and Orca Construction.
