Buyers being lined up for failed $500m Orewa estate

Kensington Park was to have included up to 750 houses but only a handful have been finished. Photo / Herald on Sunday

Kensington Park, the stalled $500 million luxury housing estate at Orewa, could be sold soon.

KordaMentha, receivers for Kensington Park Properties which owns the vast block of undeveloped land, said a six-week marketing campaign this year resulted in negotiations which were going on now.

"A number of expressions of interest were recorded. These are being discussed with the general security holder," said receiver Grant Graham in a report just out.

Only a handful of houses have been finished in the eco-friendly estate. BNZ is owed $42 million and Graham said buyers were trying to escape deals because of the project's failure.

"A number of apartment sales are due for settlement. In each instance, the purchasers are disputing their obligation to settle. At this point, there are no funds available in the receivership. The bank is funding ongoing receivership costs," he said.

Developer Patrick Fontein and a group of investors planned to build 750 houses at Orewa. Only about 60 are up and residents are desperate for facilities to be finished.

Graham's statement of receipts and payments in his latest report showed how $1.7 million had been spent from September 12 to March 11.

This included $423,000 paid to the receivers, $243,000 for plant and equipment hire, $20,000 on lawyers, $151,000 on security costs, $330,000 on salaries and wages and $19,500 on consultants and contractors.

Resident Jan Newbould said she was appalled at the big receivership fees. She has complained to the Government about the receivership but was assured receivers worked under strict terms.

Fontein kept in touch but residents wanted the gymnasium completed and a road built which would allow access to a neighbouring reserve, she said. "We just have to grin and bear it."

Fontein also wanted to develop about 455 places at Huka Falls near Taupo but only about eight were built. Other companies started by Fontein as part of his multi-million dollar property development empire are to vanish.

PricewaterhouseCoopers advertised in the Herald's public notices saying there was no longer a need to keep the companies registered entities.

KENSINGTON PARK

* Truman Show-style housing estate.
* Developed on Orewa camp grounds.
* Failed September 12 last year.
* Marketed from February 25.
* Receivers now talking to buyers.