Developer drops $12m vineyard-theme housing project

By ANNE GIBSON

The leaky buildings problem has forced New Zealand's largest condominium developer to cancel a $12 million Auckland project, leaving upset house buyers with shattered dreams.

Takapuna-based Taradale Properties has cancelled The Orchard at Botany Downs, in Manukau City, envisaged as a 49-unit vineyard-themed project, ringed with grape vines, avocado, nut, fruit and olive trees.

Taradale - under pressure because of problems at three holiday resorts it developed and at the centre of leaky buildings problems because of its numerous monolithic-clad, multi-density developments - has terminated the project.

"It broke our hearts, but it's just too hard," said Taradale founder Tim Manning yesterday, citing a construction cost escalation of between $20,000 and $40,000 a unit to ensure they were weathertight. This made the project unfeasible, he said.

As well, $100 million worth of new Taradale projects are under scrutiny, with Manning saying more could be cancelled and warning unit buyers to beware of cheap housing which could leak.

Home buyer Peter Funston, of Pakuranga, said he was shattered when told he would not get his two-bedroom house at The Orchard.

He had put down a $22,000 deposit on the proposed $250,000 unit, to be built on a site off Smales Rd, near Te Irirangi Drive. The development was to be ringed by Redcastle Drive.

It was to have a swimming pool, tennis court, gymnasium, on-site manager, landscaped grounds, high security, tranquil surroundings and had its own newspaper, the Orchard Post - news and information from New Zealand's newest condominium community, published by Taradale.

Funston says he will be thousands of dollars poorer, estimating he spent $5000 on property, valuation and legal fees in the transaction.

He has been told by his lawyer that his $22,000 deposit is safe and will be returned soon because it is held in a lawyer's trust account.

"But I want to contact other people who have also lost money," Funston said. "I'm quite frankly staggered by this because there's no compensation for the $5000 I had to spend and nothing that can be done."

Funston had planned to let out his two-bedroom unit, with the rent covering repayments on the property, believing Taradale's marketing that the units would be built in one of New Zealand's fastest growing areas.

"You can enjoy the lifestyle of the orchardist and market gardener without having to get your hands dirty," said the Orchard Post.

It added that Macadamia groves would offset the cluster of "quality homes with a community feel. For all owners, home is their castle and at The Orchard you can feel confident that you and your home's security and care are a primary consideration."

Manning says he will alter $100 million of new projects because of the weathertightness issue.

Yesterday he said The Orchard unit buyers' funds were in a trust account at his lawyers, Knight Coldicutt, and would be refunded within a week.

The 2ha site would be sold, at a loss to Taradale of $2 million in feasibility studies, consultancy fees and marketing.

"It was my call to cancel The Orchard and it was prudent because if we built something that leaks or we built at a loss, we have problems," Manning said. "I'm now going through all the rest of the developments and if we can't guarantee they won't leak, then we will have no hesitation in cancelling them."

Manning has instead bought into Auckland's $60 million Parliament St 19-level tower, saying he could make as much money out of one project such as that as out of three suburban multi-density housing projects.

* If you have information about leaking buildings,
email the Herald or fax (09) 373-6421.

Herald feature: Leaky buildings

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