Fletcher wins judgment in Melview case

Most of the rooms in the Holiday Inn hotel on Featherston Street have been sold to investors. Photo / Supplied

A Fletcher Building business yesterday won a $1.7 million Auckland District Court judgment against one of the country's most influential developers over the $100 million Wellington Holiday Inn.

The Fletcher Construction Company took action against Nigel McKenna's Melview Featherston Street for not paying the final amount for building the 280-room 17-level hotel.

McKenna was not represented yesterday and his lawyers at Kensington Swan were called but did not appear.

The developer has completed property projects worth more than $1 billion, putting up a string of hotels and apartments around Auckland's waterfront and elsewhere and is now working at Queenstown.

But yesterday, Fletcher's lawyers outlined how a series of agreements for final payment on the hotel had come to nothing leaving them no option but to go to court. Fletcher sought judgment from Judge Philippa Cunningham to enforce a Building Disputes Tribunal determination made on February 16 by adjudicator and Wellington barrister John Walton.

Yesterday, Graeme Christie and Brad Spiers of Simpson Grierson appeared for Fletcher saying that Melview owed $1,770,284.88. Christie outlined how terms had been agreed to but were not met.

The money was still outstanding so yesterday they not only sought an order to enforce the tribunal's decision but also security over titles to 18 hotel rooms at the Holiday Inn which McKenna is yet to sell. Most of the Holiday Inn rooms have been sold to investors, many in Asia.

Yesterday, the matter went to first one district court then was adjourned to another to be heard unopposed. Judge Cunningham sought reassurance from Christie that two Kensington Swan lawyers knew about the matter. He reassured her they did.

A spokesman for Melview said yesterday's matter was procedural, part of terms already agreed to and McKenna would not be at court.

Christie outlined to the court how a series of agreements were struck between Fletcher and McKenna.

On February 23, Fletcher had filed an application to enforce Walton's decision over the $1.7 million and for the issue of charging orders in properties at 75 Featherston St.

On March 16, Melview Featherston filed an application opposing this. But on March 22, Fletcher and Melview entered into an agreement which said that Melview would back down and get a reprieve: pay the money by April 20.

Mark Binns, construction and infrastructure chief executive at Fletcher Building, said McKenna had given personal guarantees.

"We will be registering a charging order and seeking the winding up of Melview Featherston Street," Binns said.


BIG DEALS

Some of Nigel McKenna's (pictured) projects:
* Beaumont Quarter apartments, Auckland, $100m.
* Lighter Quay's Westin Hotel and apartments, $300m.
* Quadrant hotel/apartments, Auckland $100m.
* Kawarau Falls resort, Queenstown, $1b.
* Planned Flat Bush, new Manukau town for 40,000 people, $1b.