The sale of Auckland’s planned 727-home Ormiston Rise is due to settle today, as buyers who paid 10 per cent deposits express fears.
On May 7, the development company behind the project at 125c Murphys Rd, Flat Bush went into receivership. That was Ormiston Rise.
Today, the project is due to be sold to a new developer, The Neighbourhood Ormiston, which has vowed to finish it.
“We are optimistic that the development will be completed when the sale goes through,” said one property buyer regarding the settlement for the project, which has KiwiBuild and free-market homes.
Only a few homes have been finished but sales can’t settle because code compliance certificates (CCCs) have not been issued.
“But the time factor is my biggest concern. I am a market purchaser with a sunset clause next year,” the buyer said.
The Neighbourhood Ormiston is due today to settle the purchase of the land and buildings from the receivers of Ormiston Rise.
A spokesman for The Neighbourhood Ormiston said on August 30: “The sale and purchase has been agreed between receivers Calibre Partners and the buyers.
“The Neighbourhood Ormiston is associated with the financiers. They [will] purchase the development from the receivers, Calibre Partners. That purchase is going ahead and will complete and the development will resume once the lockdown is over,” the spokesman said.
Before receivers were appointed to Ormiston Rise, buyers were told the first homes would be finished in May this year, then this month and now next year, the buyer said.
“Since the receivership, a Facebook group that was originally set up for the KiwiBuild ballots has been extended for all purchases and we are regularly sharing our worries and concerns on there.
“Additionally however through the platform members have been sharing some of the positive things on the progress of the development which is encouraging,” the buyer said.
“With regards to completion progress however one vital piece to the puzzle is the application for the subdivision. Following the sale of the development and the Covid lockdown, goodness knows when this will be.
“The one thing we understand is that this can take up to six months for approval. This is a concern as we have Covid and Christmas on the horizon.”
Purchasers’ life savings and deposit money is locked in with current contracts, with no option to pull out, the buyer said.
Bank interest rates and changes to LVR rules were a further worry.
Purchasers had to reapply to banks to keep mortgages current, the buyer added.
The buyer spokesman said 21 homes were completed and on-site but not connected to services and without CCCs.
“A further eight have been completed offsite are ready to be taken to site when alert levels change,” he said.
He could not confirm the date for completion of the sale because the lockdown has made that uncertain, but he expects that to be today.
“The letters will go out on completion and will reassure buyers that their rights under their purchase agreements are not affected by the sale. The terms of the purchase agreement have not changed. Their rights will be enforceable against The Neighbourhood Ormiston.Their deposits are still held by Anthony Harper Lawyers,” the spokesman said.
Insolvency specialist Damien Grant was last month appointed to Ormiston Rise, listed as owing creditors $140 million. Companies Office records showed Waterstone Insolvency’s Grant was appointed by the board of directors and is now working with the company, where creditors claim $140m.
Source: Read Full Article