5 Mar 2010

Rest of $2b Kawarau Falls project in doubt

9:10 pm on 5 March 2010

The remaining two stages of the $2 billion Kawarau Falls development Queenstown are now in doubt after the company behind the venture was placed in receivership.

Grant Thornton New Zealand Ltd has been appointed receiver over Peninsula Road Ltd, the company put in charge of completing the hotel and apartment resort which included building a conference centre for 1000 people.

The companies behind Stage 1 were placed in receivership last May, but the receivers allowed building work to continue. Two hotels and several apartment buildings were due to be completed in April this year.

However, Fortress Credit Group placed Peninsula Road Ltd in receivership after it defaulted on its loan obligations. The viability of the whole development is now in question.

Queenstown mayor Clive Geddes says he hopes a buyer can be found quickly for the land placed in receivership at Kawarau Falls Station.