- A $40 million housing project in Ngatea is for sale after the developer's collapse.
- Ngatea Development Limited, owing nearly $6 million, went into receivership, halting the project.
- Hauraki District Council hopes a buyer will revive the subdivision, which includes a childcare centre and residential dwellings.
A $40 million housing project in the small Waikato town of Ngatea is on the block after the receivers were called in.
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The listing for the incomplete development at 8 McWatters Drive says the 2.2ha property "must be sold".
The forced sale follows the collapse of the developer.
Hauraki District Council mayor Toby Adams told OneRoof he hoped a buyer could be found to revive the abandoned subdivision.
He said the council sold civil engineer Eric Au the land in the Ngatea North subdivision because he shared its vision of bringing more homes to the growing Waikato town.
The 2.2ha site at 8 McWatters Drive, in Ngatea, "must be sold". Photo / Supplied
A four-bedroom house on Calla Lane is one of three unfinished houses in the development up for grabs. Photo / Supplied
Inside one of the half-built houses. Photo / Supplied
However, Au’s company Ngatea Development Limited was placed in receivership in August last year, owing nearly $6 million, and the $40m development ground to a halt.
Hauraki District Council is owed almost $100,000 but has not filed a claim yet. Adams was doubtful the council would get the money back.
Au told Valley Profile in 2022 that the development would be a “good transition” for Ngatea residents who would be able to stay in the town.
“It matters to me that it is a pleasant environment for the community. I’m putting quite a bit of effort into making that happen,” he told the publication.
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Receiver Thomas Rodewald, of Rodewald Consulting, said it was unlikely all the creditors would be repaid.
Colliers Hamilton agents Jason Kelsey and Alan Pracy have been tasked with selling 8 McWatters Drive, which under Au’s plans had been earmarked for a retirement village and care facility, a childcare centre for 50 children, a cafe and six residential dwellings.
Pracy told OneRoof that the site could suit land bankers and developers, adding that he expected most of the interested buyers would look to pick up the original development.
He could not give a price indication and said they were inviting all offers. “Everyone wants it sold, obviously,” he said.
A childcare operator could take advantage of the land use consent in place for the childcare centre, but there was no resource consent for the retirement village and care facility.
Hauraki mayor Toby Adams is hoping someone will take over the development aimed at building more housing in the town. Photo / Mike Scott
There was also one half-built home on the site which had been built by a third party with a sale and purchase agreement in place for them to buy the land it is on.
Harcourts Thames has been tasked with marketing a further six residential sections, including three with half-built homes on them.
The deadline for 1, 2, 4 and 6 Calla Lane and 1 and 2 Tennent Lane closed last week, with Harcourts agent Steven Bridson telling OneRoof they were still going through the tender process.
The listing photos show some of the unfinished houses have roofs, exterior walls made from poured concrete and internal framing, but are missing joinery, interior walls and kitchens and bathrooms.
Adams said the council sold the land to Au to support his plans for the site. “He had a really great vision to maintain a good housing stock for Ngatea, but there were talks of a hospital or rest home and all sorts of activities there at the start,” he said.
“With the best of intentions, he tried his hardest, and unfortunately it didn’t go to fruition due to whatever reasons – market drops, all sorts of activities that changed around that time.”
Adams said the market had slowed down and council’s own experience with selling its sections in the Ngatea North subdivision highlighted that.
The town already has several childcare centres, but there isn't a retirement village or care centre. Residents seeking these services currently had to move to neighbouring towns such as Paeroa, Thames or Waihi, he said.
“As our population ages, they don’t necessarily want to leave the community they’ve been living in so to have something in the community where they have access to all their needs being met, then 100%, we would definitely support that.”
Adams had been told there was interest in the development and was hopeful the next person who picked it up would fulfil the original vision.
“It’s kind of hard because you are not just coming into a half-done project just with infrastructure; you are coming into a half-done project with actual houses on it," he said.
“It’s an interesting one, but that’s what happens when unfortunate things happen with finance and projects don’t get done to completion.”
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