Deal keeps Hilton on track for April opening

By ANNE GIBSON property editor

The developer of New Zealand's first Hilton Hotel is still aiming for an April opening after striking a deal yesterday with the receivers of collapsed building company Hartner Construction.

Work on the $50 million hotel has been suspended for a fortnight since Hartner went into receivership with debts estimated at more than $28 million.

Receiver John Waller said a "satisfactory arrangement" had been reached with the developers, and work was expected to resume immediately.

The 167-room hotel was originally due to open on April 1, but the date is now expected to be later in the month.

The delay means several guests have had to be turned away, including a Scottish millionaire planning to celebrate the launch of his luxury yacht with 120 friends.

The party is understood to have booked elsewhere.

However, the end is not yet in sight for the troubled Princes Wharf site. Work stopped on Shed 24, an apartment and retail block, after subcontractors walked off the job.

The ill-fated block - which faces the new Hilton - was originally worked on by builder Goodall ABL, which was liquidated last year with $20 million of debt.

As well as retail spaces, it includes a dozen apartments, the most expensive of which were priced at more than $1 million.

The contract for the block was taken over by parent company Amalgamated Builders, a contractor with offices in Otago and Southland.

Both the hotel and apartment block are being developed by Kitchener Group's David Henderson.

Late last week he said there were no problems on Shed 24 and all the money due to ABL had been paid.

But yesterday, Mr Henderson's lawyer, Paul Dale of Grove Darlow, said he was unable to comment until later this week as he was still in discussions over the situation.

Some of the subcontractors who lost money in the collapse of Goodall ABL had gone back to work on Shed 24.

The executive director of the Building Subcontractors' Federation, Peter Degerholm, said he had met Salisbury Securities, which is involved with financing the Princes Wharf development.

He said if subcontractors had concerns about being paid they should contact Salisbury first, though the federation wanted to hear from anyone with outstanding concerns on the project.

ABL site manager Dave Brown and project manager Malcolm Brown, of Paxton Construction Management, declined to comment.

ABL director Graeme Hill did not return the Business Herald's calls.