Spencer on Byron room owners head for court

Investors who bought into a five-star North Shore hotel complex only to find they could not live there are preparing for a major legal battle.

Many of the 143 owners of rooms in the Spencer on Byron tower at Takapuna are from Hong Kong and have raised their concerns in the South China Morning Post.

Court documents in the case were lodged at the High Court in Auckland in June but as yet no date has been set for a full hearing.

The Post reported almost 50 people bought rooms in the hotel in 1999. They expected to have the option of either living in the tower or renting their apartment to the hotel for paying guests.

But in August 2002, North Shore City Council's planner for major projects, Rebecca Welch, said any permanent residential occupation would be beyond the scope of the tower's legal approval.

"A land use consent would be required to allow the hotel rooms and suites to be used as permanent residential units," she said.

The investors have mounted their action against Auckland developer Covington Group and the Manawanui Trust, alleging misrepresentation, Fair Trading Act breaches and deceit.