High debt levels have forced the sale of Auckland's skinniest apartment tower but its developer is vowing to built bigger next time and put up at least 200 units on Devonport's wharf.
Peter Chevin, who built the 144-unit 18-level "sleeping studio" Columbard corporate crash pad at 20 Wyndham St, said he had reached an agreement with his funders to sell the property.
"It's disappointing but it had too much debt," he said.
He struck an agreement with Columbard's funders, Capital & Merchant Finance, to quit the tower, saying the block was too small and he needed to develop at least 200 units in every new project.
"High occupancy levels of 95 per cent on average since the May 2004 opening, and refinement of the sleeping studio model, had not been enough to pay for the Columbard management structure," Mr Chevin said.
Since late last year, Mr Chevin has been negotiating with North Shore City Council for the lease on Devonport wharf.
A staff change at the council and the protracted nature of the negotiations meant no deal had been concluded but his conditional agreement to buy it was still valid, he said.
The wharf has been in the hands of Monice Properties, a subsidiary of property financier Bridgecorp, for some years, after a previous owner defaulted on a loan. Last August, Mr Chevin said he would demolish the wharf buildings and develop a large number of low-rise short-stay accommodation units there, a plan which was greeted with strong opposition by a group of Shore residents who signed a petition against the proposal.
Mr Chevin said he had a 25-year investment vision and the rusty, leaking wharf structure was not fit to keep.
The Wyndham St sale has not been all plain sailing.
Mr Chevin said a businessman had bought the building but a dispute over the lease of a cafe on the block's Wyndham St entranceway had resulted in that outlet being shut and advertised to rent.
A notice has been posted on its door saying the closure was because of an ongoing dispute with the landlord. A security guard was posted there but Mr Chevin said residents were still able to get into their units.
He is now considering floating a company on NZX to raise funds for the Devonport development and others in Wellington and Queenstown.
"Columbard may float a public company but concedes the assets would have to deliver exceptional performance," Mr Chevin said.
Mr Chevin's Wyndham Construction had a $13 million contract to build a 15-level sleeping studio tower which would bring 228 short-stay accommodation units to the inner city. Work was up to level one and would be finished later this year, Mr Chevin said.
He was also planning a new tower at 12-16 Wyndham St, he said.
High levels of debt force sale of city high-rise
Columbard offers short-term studio accommodation. Picture / Dean Purcell
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