16 Nov 2016

St James apartment development put on hold

12:24 pm on 16 November 2016

A major downtown Auckland apartment development has gone on hold, raising questions about the restoration of the St James Theatre on the site.

The planned St James Suites.

The planned St James suites. Photo: Supplied

Relianz Holdings has cancelled purchase agreements on hundreds of apartments and invited buyers to re-sign at higher prices, with bigger deposits.

The development is on the site of the historic St James Theatre, to which the Auckland Council has pledged $15 million for its restoration.

In a letter to hopeful buyers, Relianz said one of the two banks which had supported the project had withdrawn.

Relianz said it had also been trying to secure a fixed price contract to build the development.

St James Suites co-developer Steve Bielby said the firm remained committed to the project.