FHB Group managing director Rob Davies at the site as earthworks began. Photo / File
FHB Group managing director Rob Davies at the site as earthworks began. Photo / File
The company managing the construction of Kawaha Point Villas has gone into receivership, leaving its buyers in limbo while a new developer is sought.
But one real estate agent fears it will be a hard project for a new developer to pick up, despite the city's desperate need for moreaffordable housing.
Kawaha Point Villas, a 26-plot subdivision on Ian St aimed at first-home buyers, was set to be made up of two to three-bedroom houses priced at $499,000.
FHB Group managing director Rob Davies at the Kawaha Point Villas lot in 2017. Photo / File
The development began in 2017 and was spearheaded by FHB Group Ltd.
After two years of delays, construction officially began last August. However, after bill payments were missed the pin was pulled on the project in November.
On April 7, FHB Group Ltd was placed into receivership.
Now, the 12 remaining buyers of the plots are left waiting to find out whether they will get their money back or have their houses built.
FHB Group Ltd managing director Rob Davies told the Rotorua Daily Post the properties were marketed by posting an expression of interest website link with artist impressions of the subdivision on Facebook.
Interested parties would then fill out a form and discuss with Davies' team directly to organise a contract.
Eight of the units were also reserved for KiwiBuild allocation.
When asked why he did not go through a real estate agent, he said it was because many they approached would have struggled to sell the bare lots.
Buyers' deposits were being held in an independent solicitor's trust account until either the contracts were cancelled and refunded or the properties were built, he said.
Davies said he was trying to get the contracts cancelled so the money could be refunded.
Delays and finance troubles had been what caused the project to go under, he said.
In August, civil construction began and things were going well but troubles with bills meant the whole thing fell over within a few months.
Davies said the buyers' contracts were now "out of his control".
"I have spent hundreds of thousands on lawyers. I can guarantee these buyers will either get money back or their properties built," he said.
The company had also owned a large section of bare land in Koutu that had not been touched.
Appointed receivers Steven Khov and Kieran Jones said they were unable to comment on the status of the buyers' contractual positions.
However, Jones said they were seeking expressions of interest for the company and were already engaging with various parties.
"We are hoping to have a favourable resolution for all parties including the buyers and are working hard with our appointor to achieve this."
First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / File
First National principal and Rotorua REINZ spokeswoman Ann Crossley said she had concerns about whether the project would be picked up by someone new as it was a tricky model to work with.
She said being able to build new affordable homes for first-home buyers from the ground up was always going to challenging.
However, she said having affordable subdivisions and housing stock for the city was vital.
She said it would be great if someone was successfully able to pick up the project and she had no doubt all the properties would sell.
