Cautious optimism as Stonewood buyers renew vow to finish houses
‘‘It’s some good news in a bad scenario. Our worst fear was that it was going to drag on for months.’’ Stonewood customer Chris Burrowes
Stonewood Homes’ new owners have vowed to complete all unfinished homes in Canterbury, with building to restart as early as next week.
More than 100 Christchurch tradies and suppliers are ‘‘pledging support’’ to the troubled building firm, despite the company’s collapse – under the previous regime – leaving unsecured creditors $15 million out of pocket.
New Zealand’s third-largest home builder, Stonewood Homes New Zealand Ltd – the master franchisor of the Stonewood Group – and sister companies Stonewood Homes and Sterling Homes (Christchurch), went into receiver- ship on February 22. Its shareholder company, Holmfirth Group Ltd, is in liquidation.
Inland Revenue has filed liquidation proceedings against the remaining companies in receivership.
Inno Capital, a company owned by property magnates Michael and John Chow and finance specialist Clint Webber, purchased Stonewood Homes and its assets on March 9.
On Thursday, as Inno Capital finalised the purchase of the business and its assets, John Chow confirmed all partially completed homes affected by the receivership would be finished.
When Stonewood went into receivership, 110 were under construction with work grinding to a halt on most building sites. Some houses requiring minor finishing work were signed over to their owners.
Chow said they were working with the Registered Master Builders Association to ensure guarantees were not affected.
‘‘With their support we should be able to start building again next week.’’
It was welcome news for Stonewood customer Chris Burrowes whose half-built Rolles- ton house had lain dormant for almost a month.
‘‘It puts a smile on my face. It’s some good news in a bad scenario. Our worst fear was that it was going to drag on for months.’’
During the receivership period, KordaMentha receivers cut staff numbers from 85 to 44. Inno Capital has kept on the 40-strong workforce, plans to employ more staff and will announce a chief executive soon.
Chow said builders were about to start a further 80 new homes in Christchurch.
‘‘When buying assets out of receivership we were taking a bit of a risk, but what we have found is an incredibly loyal employee team ready to re-engage with customers and get building again,’’ he said.
More than 100 tradies and suppliers pledged their support for the new Stonewood regime at a function on Wednesday night.
‘‘We’re well aware that to attract the best subbies we need to pay them on time and then they’ll naturally compete on the basis of delivering quality work,’’ Chow said.
One builder, who was at the function but did not want to be named, said not all subcontractors were fully committed to Stonewood until more details were ironed out.
‘‘It was more of a meet and greet . . . We need to know what jobs we are going back to, what we are getting paid for, what the rate is.
‘‘I guess they wouldn’t have taken it on if it wasn’t going to be viable for them.’’
Stonewood is the second largest residential home builder group in Canterbury and the third largest nationally, but the new owners want to make it number one.