Onehunga’s Beachcroft Residences owes lenders $71.7m, receivers say

CMT is the general partner of Beachcroft Apartments LP, which was also put into receivership due to its default with the appointer as secured lender.

Plans for the almost-finished Beachcroft Residences. Photo / Bayleys Real Estate

BDO’s Ress Logan and Georger Bannerman were also appointed voluntary administrators of CMT Number 1 GP and Beachcroft Apartments LP on October 2 by a secured creditor.

It is not clear who that creditor is.

CMT Number 1 GP had no known preferential creditors at the date of their appointment and unsecured creditor claims were being handled by the administrators.

Nearly finished, but big losses for lenders. Photo / Jason Dorday

The company is wholly owned by Roger Coulson, who is also the sole director.

Companies Office records show Alvarium Investments (NZ) directors include Brett Gamble, Simon Tompkins, Andrew Williams and Sandy Maier jnr.

Maier is known as the man who was appointed to try to recover money in the failure of South Canterbury Finance.

Alvarium is 70.88% owned by AINZ Holdings, whose majority shareholder is Gough Investments – the investment vehicle of Ben Gough.

The original developers were art suppliers locally. Photo / Jason Dorday

On the Beachcroft situation, Grenfell said in October that via a NZ Guardian Trust entity, a secured lender had put them in control of the residential block, now in its final stages of completion.

He wrote to purchasers of the units, vowing to finish the scheme and deliver all units to buyers.

“The receivers are currently undertaking a detailed assessment of the entities’ position, including the remaining work required to complete the project,” Grenfell said.

The site would be temporarily closed while that assessment was undertaken.

“The current intention remains to bring the project to completion and deliver the finished development as soon as practicable,” Grenfell said.

Back in March last year, under plastic. Photo / Jason Dorday

He did not answer a question about how many units are sold, with deposits paid.

But he did say all those deposits were safe because they are held in a lawyer’s trust account.

“Once the project is completed and the required consents issued, the current intention is to settle the presales,” he said.

The development was started last decade by local art retailers Bruce and Anne Clegg’s Erson Developments.

But by 2022, costs had nearly doubled from around $40m to $85m.

The site was idle for around a year.

The scheme back in 2021. Photo / Fiona Goodall

Erson said at the time, the termination of the contract with Teak was because of Erson’s issues “and is not due to any default or failure by Teak”.

Teak managing director Wayne Birchall voiced concerns about those who put down thousands of dollars in deposits.

Delays were not unusual on developments of the scale of Beachcroft, but the project had been “particularly frustrating”, he said in 2022.

Then, suddenly, a new boss was appointed.

Matt Currie of Crux Partners became project manager and in 2023, he said the partly built project was being sold.

All 50 parties who paid 10% deposits had been repaid, so their sale and purchase agreements had become null and void, he said. That was at the behest of buyers who were keen to get properties they could settle on and live in.

Inside Beachcroft Residences, when Teak was still working there.

In 2023, OneRoof reported that Roger Coulson had bought the scheme.

Coulson said construction would restart in July 2023, with a target completion of December last year.

Coulson’s ownership of the partly-finished project had been backed by wealth management fund Alvarium, One Roof reported.

Bayleys agent Jack Davies, marketing the relaunched Beachcroft Residences, said the buyers had been offered the opportunity to repurchase their apartments at their original contract price.

Floods hit Beachcroft Avenue, Onehunga some years ago. Photo / Hayden Woodward

Coulson said in a 2023 media release: “I am honoured to be part of this remarkable project and excited to deliver an exceptional living experience to our future home owners.”

The title to 98 Beachcroft Ave shows it is owned by Beachcroft Apartments Limited Partnership.

Encumbrances on that title are a mortgage to NZGT Security Trustee in October 2023 and a mortgage to Alvarium Investments (NZ) in June 2023.

Beachcroft Residences

98 Beachcroft Ave, Onehunga;$85m 88-unit six-level project;Anne and Bruce Clegg’s Erson Developments started it;Marketed in 2017 as affordable, from $595,000/unit;Still unfinished eight years later;April 2022: head contractor Teak Construction leaves;Lender had receivers/administrators appointed;They are vowing to complete and deliver all units.$71.7m debt revealed in new receiver report out today.

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

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.