$20m+ Auckland property failure: Creditors of six companies named

KBS Construction owes $9.4m to unsecured trade creditors and $129,000 to the Inland Revenue Department (IRD), according to liquidators Steven Khov and Kieran Jones.

The other companies, owned by the same shareholders and directors, are also in liquidation, taking the full tally to $20.5m.

The Amaia Apartments are at 48 Esmonde Road, Takapuna.

Directors and shareholders Xu Xin and Wei Liu appointed Khov Jones on October 3.

Some of New Zealand’s largest businesses want money from KBS Construction, which built Amaia, a te reo Māori name that means lunar rainbow.

Bunnings, Fletcher Building’s Fletcher Distribution, Graeme Hart’s Carters Building Supplies and Heartland Bank appear on the list, although how much each is owed is unstated.

“The reason for the failure of the company, which led to the appointment of the liquidators, is due to the company having insufficient assets to satisfy its liabilities,” Khov and Jones wrote.

KBS Construction has no cash, only office equipment worth $38,000, but it is too early to say what its total assets are.

Tasman Insulation of Penrose, United Timber Merchants of Tāmaki, Industry Training Works New Zealand of Poland Rd in Glenfield and Just Sheds of Tauranga are creditors.

APL Kwikform, ATF New Zealand, Canon New Zealand, Knobs ‘N Knockers, Oregon ITM Group of Mount Maunganui, Hilti New Zealand of Penrose, Extrastaff, Eltrade Industries and Dayle Timber of Avondale also appear.

Inzone Industries of Ōtara, Promax Engineered Plastics of Rangiora, Custombilt Projects of New Lynn and Brilliance International of East Tāmaki are named.

It is too soon to say if any money will be available to creditors.

The Amaia Apartments are a new development at 48 Esmonde Rd. People are living in units there.

The liquidators said they were aware of legal proceedings because KBS Construction was a party to an adjudication.

They are investigating that and will say more in future reports.

KBS Construction was only incorporated in 2018 and the directors own half each.

Both are listed with addresses of 48 Esmonde Rd.

That is the same address as the Amaia Apartments, built on a site between the waterfront facing Bayswater and the road which leads to the motorway.

Related companies with the same directors that are also working in the property sector owe much more.

All up, companies with the same directors as KBS Construction owe $20.5m to the IRD and creditors.

The other five companies in liquidation, with initial reports also out on Friday, also from Khov Jones are:

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, 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.

At Amaia in Takapuna, residents are living in some units, although about 50 real estate listings indicate many are still for sale.

One overseas vendor is offering to take just $899,000 for a level-three apartment with a car park, two bedrooms and one bathroom.

“The development features 120 premium freehold apartments overlooking a vibrant central plaza, surrounded by lush green spaces that foster a strong connection to nature and the waterfront,” Barfoot & Thompson agent Aden Xu said.

New, never-sold two-bedroom places are being advertised for $1m and more.

Amaia’s developers were granted exemptions to New Zealand’s foreign buyer ban and could sell units overseas after an application to the Overseas Investment Office.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.