A developer has pulled the plug on the construction of 300 apartments in central Auckland.
However, the parallel restoration of the historic St James Theatre might continue.
Relianz Holdings said it had not been able to secure finance for the St James Suites development and would refund deposits to hundreds of buyers.
The company cancelled sales contracts mid-last month and invited buyers to re-commit at higher prices, while it continued to seek finance and a construction contract.
As part of the project, Relianz had agreed with Auckland Council to fund part of the restoration of the theatre on part of the site.
It said it still intended to complete structural and seismic work.
The council had pledged $15 million, and said it hoped it could finalise the agreement early next year to complete the theatre.