Creditors owed: Developers of this Fernhill land have gone into liquidation
A company developing an upmarket 160-room backpackers in Queenstown has gone bust owing big money.
Developer Homebush Trustees Ltd was placed in liquidation last week.
The Auckland-based company planned an accommodation complex – including a restaurant/bar/reception facility off Fernhill Road – on vacant land beside Fernhill’s Heritage Villas.
Designs had twice been presented to Queenstown Lakes District Council’s urban design panel.
Those out of pocket include a Queenstown landscape architect, owed $23,000, a local planning consultancy, owed $8000, and Nelson architectural designer Dave McLeod, who’s whistling for almost $20,000.
The landscape architect, who doesn’t want to be named, says it’s unfortunate that there’s still no legal protection for creditors.
Homebush Trustees director John Babington wouldn’t comment this week beyond confirming his company’s in liquidation.
Mountain Scene understands the project’s front-man was Auckland bankrupt and banned company director Peter Chevin.
McLeod says this is the second time he’s been stung on this Fernhill Road site.
He lost a similar amount after designing a multi-storey hotel for then-land owner Rod Nielsen.
Nielsen – who also developed Heritage Villas – was bankrupted two years ago for almost $17 million.
McLeod says he first suspected problems with Homebush Trustees some months ago when the company changed designers and wasn’t able to pay him out.
“We did get a payment out of them just a month ago but in the back of my mind it was always a bit dubious.”
Despite being bitten twice, McLeod says he’d still look at designing another building on the site.
“Hey, look, if somebody actually has some money for a change and wants to develop it, I’m all ears.”
Homebush Trustees’ liquidation also throws a spotlight on landowner Brick Street Properties Ltd, which supposedly bought the site off Nielsen.
Brick Street Properties was placed in receivership in September, owing $3m to first secured creditor NZF Money Ltd.
Although official records show the company’s sole shareholder is Alastair Duncan Brown and its sole director is Christopher Gil Cook, both of Auckland, local lawyer Wayne McKeague believes Nielsen still has some involvement.
McKeague, who acts for Heritage Villas owners, says: “When I dealt with Brick to get an easement and everything, I dealt entirely with Nielsen and Nielsen’s lawyer.”
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