- Beachcroft apartments in Onehunga face a boundary issue.
- Receiver Andrew Grenfell confirmed a 32cm encroachment of three foundation blocks.
- Receivers in discussions with the neighbour to resolve the issue.
The troubled Beachcroft apartments in Auckland’s Onehunga have run into another problem, this time over a boundary issue.
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Receiver Andrew Grenfell, a partner at McGrathNicol, confirmed to OneRoof there was a minor encroachment of about 32cm of three foundation blocks of Beachcroft Residences over the boundary line with a neighbouring property.
“The blocks were in place prior to the neighbour acquiring that property ... and significantly predates our appointment.
“The receivers are in discussions with the neighbour to resolve the issue. We are receiving legal advice in relation to this matter and due to confidentiality requirements, we are unfortunately unable to share any further details with you at this stage.”
OneRoof spoke to the owner of one of the neighbouring properties about the boundary issue. He declined to comment, replying: “All I can say is we are in negotiations with Beachcroft Apartments. I’m sorry, but I’ll have to leave it at that."
The development was launched a decade ago but has yet to be completed. Apartments in the building are set to enjoy a range of views from the Onehunga Bay Reserve and its lagoon to the Manukau Harbour. Photo / Supplied
Eighty-five apartments across six levels will include one-bedroom, two-bedroom and three-bedroom residences, including two three-bedroom penthouses. Photo / Supplied
Late last year, the New Zealand Herald revealed two lenders who funded the almost-complete apartments were owed $71.7 million, according to the first receivers’ report.
One of the companies involved is CMT Number 1 GP, owned by property developer Roger Coulson. A house in St Heliers linked to Coulson, which had been listed as an “as is” mortgagee sale, has since been withdrawn from the market.
A OneRoof article from March told how Coulson had been spearheading the rescue and completion of the Onehunga development before the collapse of CMT Number 1 GP.
Coulson took over the 85-unit project after the previous owners abandoned it. Costs had ballooned from $40m to around $85m, and construction had been halted for more than a year before Coulson stepped in in 2023.
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Coulson’s acquisition of Beachcroft was backed by wealth management fund Alvarium. At the time, Bayleys agent Jack Davies, who marketed the relaunched Beachcroft Residences, said Coulson had offered buyers the opportunity to repurchase their apartments at their original contract price.
Coulson said at the time in a media release: “I am honoured to be part of this remarkable project and excited to deliver an exceptional living experience to our future homeowners.
“Our team is committed to creating an inviting community that blends contemporary design with a strong focus on facilitating quality lifestyles for its residents. We look forward to the construction recommencing in July 2023 and completing the finished apartments in December 2024.”
The original developers Anne and Bruce Clegg, of Erson Developments, shown here in 2016. Photo / Supplied
Beachcroft Residences, under construction in 2021. Photo / Fiona Goodall
He took on the project after being contacted by Teak Construction, the main contractors of the residences under the previous owners. “It was an attractive opportunity from day one. Working with the incumbent builder, we had an insider view,” Coulson told OneRoof at the time.
Coulson got to know Teak Construction because the company was pricing another project for him. However, Teak Construction went into liquidation earlier this year.
Beachcroft Apartments LP and CMT Number 1 GP Limited, the entities behind the development, were placed into receivership and administration on October 2.
Auckland Council recently re-inspected Beachcroft Residences for defects, including possible roof corrosion, and has stated it will not sign it off until issues are fixed.
Coulson is a 30-year veteran of property development and has been associated with more than 60 companies spanning development, financing and property investment.
His companies included entities involved in apartments, subdivisions, golf courses, hotels, trust structures, and financing arms.
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