Investors fight Station demand

Robert McEwan's failed property development in Queenstown . Photo / Supplied

Investors in one of Robert McEwan's failed property schemes are fighting claims they should buy the apartments of a liquidated company because it failed to sell to a third party.

McEwan's company Station Properties tried to get the investors to pay up last year but was awarded a win against one defendant only, a company called Lever Action.

Station Properties has filed further proceedings to get the remaining investors to pay up.

Yesterday, during a closed hearing at the High Court in Auckland, Station Properties and the group of investors being defended by Dunedin-based lawyer Raelene Kelly dealt with some "housekeeping issues" before the trial.

Station Properties, in receivership, with McEwan's son Kelly's company Forum Select Bowen View, in liquidation, developed luxury apartments and townhouses in Queenstown.

The complex, Bowen View, named after Kelly McEwan's company, was supposed to be sold en masse to a third party but failed to secure a buyer.

The investors underwrote development of the complex and never intended to buy the apartments, but after the sale fell through they became liable. The investors disputed this and refused to pay about $1 million for each apartment, claiming they would have to file for bankruptcy if forced to buy.

Kelly is also defending Neil McGarvey, who had a summary judgment ruled against his company, Lever Action, last year.

Kelly said it was yet to be determined whether McGarvey would be personally liable for the contract he signed under his company's name.

According to the receivers, Grant Graham and Brendon Gibson of Kordamentha, BOS International, the main financial backer, is owed $21 million, Dominion Finance is owed $3.9 million and Inland Revenue is owed $1.6 million by Station Properties.