House buyers who bought a property off-plan at a now-failed Auckland housing development will get their deposits, plus interest, paid back by Christmas.
Panama Road Developments Limited, the company behind the Springpark housing project in Mt Wellington, has been placed into receivership.
Springpark promised "quality, affordable housing", but receivers Grant Thornton says the company is "unable to build the house properties".
A letter sent out by Grant Thornton to investors this week says a thorough review has shown "it is not viable to complete the project as planned".
"Increased costs mean that Panama Road Developments Limited does not have sufficient funds available to it to finish the work.
"This is a very unfortunate situation and we understand that this may be a disappointment to the purchasers," the letter says.
Buyers can now cancel their sale and purchase agreement at an earlier date than stated in their contract.
It will allow them to get their deposit and any interest accrued straight away – those who take up the offer before December 18 will get their money back before Christmas.
However, if investors don't want to cancel the contract immediately, the agreements will be cancelled formally when the sunset clause expires.
The deposits are held in trust by Russell McVeagh.
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