Wattle Park in South Auckland, where 112 new apartments were built.
Wattle Park in South Auckland, where 112 new apartments were built.
The debts of an insolvent Auckland development business have been put at $4.6 million after it built 112 apartments and townhouses in South Auckland’s Wattle Downs.
Damien Grant and Adam Botterill of accountants Waterstone are liquidators of Mahia Village, which takes its name from the local Mahia Rd and developedwhat it called Wattle Park.
Developer Marcus Brian Jacobson is the sole director of Mahia Village, but he co-owns it with Andrea Jean Jacobson.
Marcus Jacobson developer for the Ngongotaha housing project. Photo / Andrew Warner
The Jacobsons called in the liquidators, but Marcus Jacobson told the Herald: “That project was completed a couple of years ago and has been delivered. This is part of the issue with the funder”.
“We have been advised the company undertook a residential property development. The company built 112 units, 100 were sold, and 12 were held by the company for the purpose of long term leasing.
“The liquidation of the company was precipitated by poor economic conditions caused by Covid-19. At the date of liquidation, the company owned and was leasing 12 residential properties to a community housing provider,” the initial liquidators’ report of April 3 said.
Wattle Park in South Auckland where 112 new apartments and townhouses were built.
Jacobson is from Watchman Capital, which says it completed Wattle Park on the Manukau Harbour in January 2022.
“Wattle Park has been developed as a mixed development with community housing providers including Accessible Properties, Penina Housing Trust and Emerge Aotearoa,” Watchman says.
Some of the houses were sold as KiwiBuild and others were sold at market rates.
They were built on a number of sections off Mahia Rd, on Matawhanga Drive and Tokatoka Lane.
Other Jacobson companies have also struck financial trouble.
Stage one of the Mountview Green housing development in Ian St, Koutu. Photo / Supplied
Property development company Roto Whare, of which Marcus Jacobson is the sole director and shareholder, went into receivership and liquidation in December last year.
Daniel Stoneman and Neale Jackson of Calibre Partners were appointed as receivers while Waterstone’s Botterill and Grant are the liquidators.
The company went into receivership after defaulting on its loans while developing 42 townhouses in Rotorua’s Mountview Green housing estate.
In December, the Heraldreported how IRD, Bay of Plenty Regional Council, Fletcher Distribution, ITM, Genesis Energy and Resene Paints were creditors of the insolvent company.
A Florida-headquartered financier was owed $28.2m. Quaestor Advisors LLC of Jacksonville, Florida, was listed by Waterstone as the single largest creditor of Roto Whare.
The liquidators’ first report cited Jacobson saying it was a Property Law Act notice by that mortgagee which resulted in him seeking advice and having liquidators also appointed.
"Delivering dreams" said DDL's sign. Photo / Michael Craig
The company was finishing the last of the homes in the project when American funders had receivers appointed and Jacobson called in liquidators.
Jacobson told the Herald then, the liquidation was related to financing issues unique to the development, and the process protected the interests of buyers.
In 2021, the Herald reported on trouble with DDL Homes and DDL Estates in South Auckland. Jacobson was DDL Estate’s sole director and the sole director of its shareholder Rua Whare.
Auckland Council sought orders against the two companies for work at its project where land stabilisation of the Hera St site off Flat Bush School Rd created problems.
The Environment Court issued three orders after the council raised alarm at the standard of works and the environmental consequences if it was allowed to continue.
On the Mahia Village liquidation, the Waterstone accountants will issue an update in six months. Total liabilities are unknown at this stage, but they have liaised with the tenants of the rented Wattle Park units.
What deficit there will be after their investigations also remains unknown.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.
