The Whisper Cove development at Snells Beach north of Auckland. Photo/ Paul Estcourt
Receivers of a $250 million failed housing project at Snells Beach north of Auckland are taking court action against reluctant buyers who are attempting to escape from deals to buy into the seaside settlement.
Mark Sandelin of Minter Ellison Rudd Watts is acting for Whisper Cove, the company
which went into receivership after failing to repay loans and developing just a few luxury houses at Kawau Bay.
A case management conference was set down in the High Court at Auckland yesterday on litigation against six people including Bernard Wright, reluctant buyers who entered pre-sale deals to purchase places in the housing estate.
Wright and the others are being represented by Craig Andrews of McVeagh Fleming.
The development was started in 2004 by Tim Manning but he sold it to Lance Hodgkinson who the Companies Office said lives in New South Wales.
Only 36 places were built, although 160 villas and houses were planned on the 16ha seaside site.
Brendon Gibson and Grant Graham of KordaMentha said Whisper Cove had 10 third party apartment pre-sales which had not settled and were in dispute.
"Additionally, a further nine apartment pre-sales to a subsidiary of a secured creditor have not settled," they said.
The receivers had already sought a High Court summary judgment to enforce the pre-sales to settle.
"This has failed in summary judgement action.
"However, it has been referred to the High Court for a decision," the receivers said.
Westpac had loaned $36 million for the project 75km north of Auckland but the receivers discovered Inland Revenue is also demanding money.
Inland Revenue is owed $3.86 million the receivers have found.
"We are aware of two further secured creditors with subsequent ranking charges over the property with debt of approximately $12 million and $5 million," the receivers said.
"The project consists of 36 completed apartments [16 have been sold to third parties, 14 of which are underwrite sales to one party] plus partially developed residual land.
"Under the existing resource consent, a further 124 house titles are permitted in several stages," they said.
"The residual Whisper Cove assets consist of five distinct types of property assets, assuming contracted pre-sales do not settle."
