Receivers say Springpark housing project not proceeding, buyers getting deposits back

Home buyers who purchased properties off the plans in the failed Springpark housing development in Auckland’s Mt Wellington will get their deposits back before Christmas.

The company behind the 420 home development, Panama Road Developments Ltd, was put into receivership at the start of this month, leaving buyers who had paid deposits uncertain about about the future of their purchases.

Receivers Richard Simpson and David Ruscoe of Grant Thornton have written to the buyers saying their deposits will be refunded to them with interest by Christmas.

The deposits have been held in a trust account administered by a law firm.

“Following a thorough review, we have determined that it is not viable to complete the project as planned , as increased costs mean that Panama Road Developments Limited does not have sufficient funds available to it to finish the work,” the receivers’ letter to purchasers said.

“As the development will not be moving forward, buyers have been given the opportunity to cancel their sale and purchase agreement at an earlier date than is provided for in the contract.

“This will enable them to receive their deposit, including any interest that has accrued, straight away.”¬†