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A planned $700 million redevelopment of north Auckland spa town Waiwera is on hold and some of the land is to be sold, as tough economic times hit the developer.
The McEwan Group had planned to build a 215-unit hotel in the village, and to develop luxury apartments in a 12ha area overlooking the village dubbed Waiwera Heights.
However, the developer has found potential buyers for two blocks of the land, and the development is "on hold at the moment due to the current economic situation", director Dan McEwan said yesterday.
It has resource consents for the hotel, and applications for the rest were under way.
The project was expected to take between five and eight years to complete and swell Waiwera's population from 250 to 2000.
McEwan Group is leading a group of investors which includes Waiwera Infinity Spa Resort, operator of the town's landmark hotpools. Small investor Bruce Whistler, of Orewa, said shareholders had been called to a meeting on Saturday to discuss the potential sale.
"I don't know what the whole big financial picture is as far as what we end up with," he said.
"It's been a disaster as far as I'm concerned. I'd be very, very thankful if we just got our money back considering what's happened to a lot of other people."
The Business Herald understands the land has been on the market for some time and a deal earlier in the year fell through.
McEwan said the proposed sale was "an internal transaction, a bit of a switch around".
"But it's not public because we all have to agree on it. We've got to do a bit of work before effectively there is something happening."
Meanwhile, five McEwan-related companies face liquidation in the High Court at Auckland tomorrow. They include McEwan Group (which has been renamed Ro-Ro Investments) and Crystal Waters, a company which developed luxury apartments in Cable Bay in the Far North.
Some of the investors in Waiwera also put money into Crystal Waters, and described that investment as similarly disastrous.
McEwan said the upcoming liquidations were a cleanout of old companies and nothing to do with Waiwera.
Waiwera Stage One Ltd, the company grouping together investors in the hotel development, was before the court last week over a $100,000 debt to an architectural firm.
The matter is due to be settled next month.
McEwan also has other troubled projects on its plate.
Investors in its proposed redevelopment of Dunedin's historic former chief post office as a Hilton hotel are taking legal action to find out what's happened to their money.
Tourism Dunedin also sought a meeting with McEwan last month, amid rumours the project has run aground.
Last year McEwan announced plans to redevelop the ill-fated Sheraton Hotel project in the Cook Islands as a Hilton.
But last month it said the project was still at a planning phase.
GOING NOWHERE
* Planned $700 million redevelopment of Waiwera spa town on hold.
* Shareholders called to meeting to discuss proposed sale of land.
* Developer McEwan Group has other troubled projects on its books.
