10 Jun 2009

Financial crisis blamed for stalling $500 million project

5:51 am on 10 June 2009

A $500 million property project in north Auckland is being put on hold, with the global financial crisis being blamed.

Albany City Property Investments Limited has told more than 300 investors they may not receive their next interest payment.

It says it has also breached a financial covenant, which was part of its 2006 bond issue.

The project would have covered more than 12 hectares of land in Albany, creating a centre of low rise commercial buildings, retail and apartment blocks.

The investment company now says it is uncertain whether it will be in a position to meet the next payment to bond holders.

North Shore Mayor Andrew Williams says it is disappointing but he is certain the project will eventually go ahead.

The investment group says its trustee has given it until Monday to sort out its financial issues.