Auckland developer Wilshire Group buys Springpark out of receivership

Wednesday 23rd March 2016

Auckland residential property developer Wilshire Group has bought the failed Springpark development in the suburb of Mt Wellington out of receivership for an undisclosed sum.

The company's offer was accepted by receivers Richard Simpson and David Ruscoe of Grant Thornton last week and has gone unconditional, it said in a statement. Wilshire had already purchased two of the development's three stages from the previous owner and expects to start building new houses this year in what will be a four-year project involving 450 to 500 new properties.

"We will continue with most of the previous plan but look to make improvements to enhance some parts of the urban design," Wilshire general manager Mark Peldmanis said. The houses "will still be reasonably priced, quality homes interspersed with open spaces, but given the rising cost of construction and housing in New Zealand the previous offer prices are simply not viable."

The Springpark development was tipped into receivership in December after its Singaporean lender Koi Structured Credit PTE called in a $26.8 million loan. In their first report in February, receivers Simpson and Ruscoe said they deemed the company couldn't continue building properties on the site and offered to allow the 149 home buyers to cancel their contracts and get their deposits back.

Wilshire said some purchasers who pre-bought houses want to proceed and have been offered a discount on the final price, while others chose to get back their deposits.

Wilshire's portfolio includes more than $150 million of residential and commercial property across Auckland, and is majority owned by director Vincent Wan.

BusinessDesk.co.nz

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