PHOTO: Richard and Meg Maher said they were “shaking with relief” after learning their home purchase agreement would be settled after a troubled three-year journey. JONATHAN KILLICK/STUFF
The Government has engaged in confidential discussions with a struggling developer to ensure the release of numerous KiwiBuild homes that might otherwise have remained inaccessible to eager first-time homebuyers.
It has come to our attention that Kāinga Ora has reached an agreement to acquire a portion of the troubled Ormiston Rise subdivision from The Neighbourhood, the troubled developer. The developer will continue to serve as a contractor for the ongoing development.
Previously, there were reports of a delay in the delivery of 56 KiwiBuild homes in the initial phase of The Neighbourhood Ormiston development, causing anxiety among buyers due to looming sunset clauses. Richard and Meg Maher, two buyers, expressed relief after receiving an email from the developer’s law firm, Bell Gully, indicating that their settlement was imminent. Richard even mentioned that his settlement might coincide with his 30th birthday, following a three-year journey marred by delays caused by the pandemic and the developer’s receivership in 2021.
The Ormiston Rise development, also known as Ormiston Rise, is planned to consist of approximately 715 new houses, with a substantial portion allocated for KiwiBuild. Some houses, including the Mahers’, were visibly ready for occupation but had been withheld from settlement during negotiations between the developer and the Government.
Tony Osborne, a director of The Neighbourhood, stated that the proposal had been presented to Kāinga Ora and the Minister of Housing the previous week. Despite ongoing challenges, he emphasized the developer’s commitment to delivering the homes, as funding partners continued supporting the project, even though costs exceeded sales revenue.
The developer sent a mass email update to buyers on Friday, marking the first communication since June. They called for settlement on all KiwiBuild properties that were ready for it and indicated plans to do the same for the remaining KiwiBuild properties in the coming weeks, apologizing for the stressful delays and acknowledging the flexibility of government agencies in reaching a solution.
Kāinga Ora had maintained a tight-lipped stance when questioned by reporters, citing the delicate and complex nature of the negotiations. A spokesperson clarified that a section of land separate from the KiwiBuild homes had been identified during discussions with the developer, leading to a commercial transaction.
Although the spokesperson did not disclose the exact transaction amount due to commercial sensitivities, the overall development had previously been reported to have a value of $200 million. Meanwhile, Richard Maher, while relieved to have answers, expressed frustration at his home being seemingly used as leverage in the negotiations between the developer and the Government, describing it as a stressful ordeal.
SOURCE: STUFF