Sudden company switch stuns buyers at troubled scheme
Purchasers told vendor had changed, writes Anne Gibson
Having receivers take control of a 105-home Auckland housing project now under construction surprised the would-be buyers. But having their contracts changed three days before those receivers were appointed has further startled some of those caught up in the troubled project.
Buyers of Ormiston’s new DDL [Delivering Dreams] housing project at Flat Bush told the Weekend Herald of a sudden company switch within three days of the receivership.
That change, they said, meant they were now dealing with a troubled company in receivership and that was the last thing they expected.
Buyers who contacted the Weekend Herald said their original contracts were with DDL Estates, directed and owned — via his company Rua Whare — by Herne Bay resident Marcus Brian Jacobson of privately-owned developer Watchman Capital.
But on May 31, the buyers were unexpectedly advised via a lawyer acting for DDL Estates they would instead be purchasing from DDL Homes Ormiston, which they were told was a related party of DDL Estates.
They said they didn’t think too much about it.
But then the hammer fell. On June
3, project funders Vincent Capital suddenly had Calibre Partners appointed as receivers of the
105-home scheme which also has sections, taking it to 122 properties in total.
On May 31, Allison Stafford-Bush, a senior legal executive at lawyers Steindle Williams Legal, wrote to the buyers purchasing via DDL Estates.
“Our client has exercised its right pursuant to clause 14.3 in the sale and purchase agreement and nominated the benefit as vendor to a related entity DDL Homes Ormiston. Please refer to that entity as the vendor in any correspondence going forward.”
Asked what had happened and of his connection to the troubled Ormiston estates in the hands of receivers, DDL Estate’s Marcus Jacobson told the Weekend Herald :“I have no involvement in this project.”
DDL Homes Ormiston is not only in receivership but also in voluntary administration. Its director and owner is Baljit Kaur Dheil of Redoubt Rd, Flat Bush.
Watchman Capital’s Jacobson has significant and diverse development experience across the residential and commercial sectors.
“He is a seasoned investment professional, with capability across various asset classes from property development through to M&A transactions (private equity and infrastructure) with significant experience working with respected and wellknown investment and operating organisations in the UK, Australia and New Zealand,” the company says.
These roles have included investment review and execution to board representation. He also has close relationships with iwi and has been a board member and CEO of Nga¯ Maunga Whakahii o Kaipara Ngahere.
“Recently he has focused on residential property, working with KiwiBuild and community housing providers to bring both Watchman Capital and others’ projects to fruition,” the business says.
DDL Estates owns other properties in Auckland, title searches reveal.
DDL Estates was formed in September 2019 by Harjit Singh Dheil, and in December 2019 he transferred all shares in the company to Rua Whare, a company owned by Jacobson.
Some in the sector are now asking about the change to the Ormiston contracts for the 105 buyers.
Calibre Partners’ Neale Jackson wrote to buyers this month empathising with their situation.
“We realise news of the receivership will be unsettling and you will have many questions. We are working closely with the companies’ lenders to develop a plan for the developments,” he wrote.
Jackson also sent a list of questions and answers for buyers which said:
We realise news of the receivership will be unsettling and you will have many questions. Neale Jackson, Calibre Partners
Q: What is receivership?
A: It is where a receiver is appointed to realise the assets or manage the business of a company for the benefit of its creditors, in this case the assets relating to the developments at 370 and 397 Ormiston Rd. The main asset is the land that the developments are being built on and the construction works under way.
Q: How did the company get into this position?
A: The lenders to the projects became concerned about construction progress.
Q: How long will this receivership last?
A: At this stage, we are not putting any timeframes on it. The receivers will be working with the lenders over the coming weeks to make a plan for the future of the development. Q: I have a contract to buy a house. How does the receivership impact that? A: Your rights under your contract are not impacted by the receivership.
Q: What about my deposit?
A: Your deposit is unaffected by the receivership.
Q: Who will oversee the development?
A: The receivers are in charge now. They will be working with the lenders to make a plan for the development as quickly as possible.