Developer in the gun over leaky units

An exclusive development on the edge of Whangaparaoa's Gulf Harbour marina is filled with rot - and the developer faces possible legal action.

Developer Rick Martin, of the Cornerstone Group, bought the land, hired the architect, paid the builders and then sold 38 of the 41 apartments in Oyster Cove.

Last week, he described the rot-riddled homes as "a bugger". "I'd certainly accept my part of the responsibility for it - other than paying for it all myself, which I'm not about to do because it's not all my responsibility."

But now he faces a potential law suit from a group of apartment owners, who have dubbed the leaky complex "Moisture Cove".

They have hired leaky home legal expert Paul Grimshaw, from Cairns Slane, who is already handling $28m worth of claims from the leaky homes crisis.

"We feel let down by Cornerstone. They haven't stood by people who have bought into their developments," said Milton Kilgour, who bought the second apartment Cornerstone sold with his wife Karen.

The Kilgours, who have three children, are now out of the development - the first to sell themselves freeof their own leakyhome nightmare.

Some of the residents, who are now paying to repair the units to stop further damage being done, are struggling to get by. Teams of builders have moved into Oyster Cove, using crowbars, hammers and power tools to tear away rotten parts ofthe building.

Large sections of the apartments are being pulled apart to carry out work to make sure there are no problems in future.

The company hired to build the apartments, Akita Construction, is now in liquidation.

It also built other "leaky homes", including work on the 153-unit Sacramento complex in Botany Downs, of which a third was so bad it had to be bulldozed.

Mr Martin, who is building a new beachside mansion about five miles away, said the Building Industry Association, Master Builders, Rodney District Council, Akita Construction, theproject managers and the architect should take responsibility for the apartments' failure.

Asked if Cornerstone should, he said: "No, I don't think so. I know everyone thinks the developer should take full responsibility, but I don't mind taking responsibility for my part of it."

Cornerstone still owned three apartments at Oyster Cove, which it had repaired almost two years ago.

Mr Martin offered the units for residents touse during their own repairs - an offer rescinded inJune 2003.

Jason Jones, a spokesman for Cornerstone Group, said the company had provided free legal advice to the affected residents.

It suggested residents pay for the repairs themselves, then sue to get the money back. He said Cornerstone Oyster Cove Ltd - the company that did the development - would honour "any liability" it had.

But the company did not accept full liability because of other parties involved.

- HERALD ON SUNDAY