22 Sep 2008

Orewa luxury housing development stalls

2:39 pm on 22 September 2008

The future of a multi-million-dollar luxury housing development near Auckland is uncertain as the company is placed in receivership.

The $450 million development on the hills behind Orewa beach is in the hands of receivers.

Company office records show that Kensington Park Properties, the parent company of the developer, was placed in receivership on 12 September.

Developers had planned to build 750 homes on the site, but so far only about 60 have been completed.

The development was also to include lakes, a gymnasium, extensive landscaping, a swimming pool and other common areas.

Deputy mayor of Rodney District Council John Kirikiri says the council is devastated by the development's collapse.

Mr Kirikiri blames its failure on funding difficulties because of the international economic downturn.

He says the council will wait to see what action receivers take, but it will ensure that all resource consent requirements are met.