Financier appoints receivers, administrators to Onehunga’s Beachcroft Residences
Beachcroft Residences in Onehunga, which is now nearly finished. Photo / Fiona Goodall
Receivers and administrators have been appointed to the $85 million Beachcroft Residences project in Auckland’s Onehunga, called by some “Fawlty Towers” for its troubled history.
McGrath Nicoll’s Andrew Grenfell and Alton Pollard are now running Roger Alan Coulson’s Beachcroft Apartments LP and CMT Number 1 GP.
Grenfell said that via a NZ Guardian Trust entity, a secured lender had put them in control of the residential block, now in its final stages of completion.
He is vowing to finish the scheme and deliver all units to buyers.
“The receivers are currently undertaking a detailed assessment of the entities’ position, including the remaining work required to complete the project,” Grenfell said.
The site would be temporarily closed while that assessment is undertaken.
“The current intention remains to bring the project to completion and deliver the finished development as soon as practicable,” Grenfell said.
He did not answer a question about how many units are sold, with deposits paid.
But he did say all those deposits were safe because they are held in a lawyer’s trust account.
“Once the project is completed and the required consents issued, the current intention is to settle the presales,” he said.
A Gazette notice said NZGT Security Trustee appointed the accountants.
Troubled history
The development was started last decade by local art retailers Bruce and Anne Clegg’s Erson Developments.
But by 2022, costs had nearly doubled from around $40m to $85m.
The site was idle for around a year.
Erson said at the time the termination of the contract with Teak was because of Erson’s issues, “and is not due to any default or failure by Teak”.
Teak managing director Wayne Birchall voiced concerns about those who put down thousands of dollars in deposits.
Delays were not unusual on developments of the scale of Beachcroft, but the project had been “particularly frustrating”, he said in 2022.
Then, suddenly, a new boss was appointed.
Matt Currie of Crux Partners became project manager and in 2023, he said the partly-built project was being sold.
All 50 parties who paid 10% deposits had been repaid so their sale and purchase agreements had become null and void, he said. That was at the behest of buyers who were keen to get properties they could settle on and live in.
In 2023, One Roof reported that Roger Coulson had bought the scheme.
Coulson said construction would restart in July 2023, with a target completion of December last year.
Coulson’s ownership of the partly-finished project had been backed by wealth management fund Alvarium, One Roof reported.
Bayleys agent Jack Davies, marketing the relaunched Beachcroft Residences, said the buyers had been offered the opportunity to repurchase their apartments at their original contract price.
Coulson said in a 2023 media release: “I am honoured to be part of this remarkable project and excited to deliver an exceptional living experience to our future homeowners”.
The title to 98 Beachcroft Ave shows it is owned by Beachcroft Apartments Limited Partnership.
Encumbrances on that title are a mortgage to NZGT Security Trustee in October 2023 and a mortgage to Alvarium Investments (NZ) in June 2023.
Previous owners were Erson Developments and Erson Holdings.
Coulson has been asked to say what went wrong after he bought the property two years ago and what trouble arose with a secured lender.
“It’s inappropriate for me to comment at this time. Your enquiries should be put to the receivers,” he said.
Beachcroft Residences
- 98 Beachcroft Ave, Onehunga;
- $85m 88-unit six-level project;
- Anne and Bruce Clegg’s Erson Developments started it;
- Marketed in 2017 as affordable, from $595,000/unit;
- Still unfinished eight years later;
- April 2022: Head contractor Teak Construction leaves;
- Lender had receivers/administrators appointed;
- They are vowing to complete and deliver all units.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.