Beach apartment battle finally over
Fourteen owners have died and weeds have taken over the run-down site. Now a judge says pay out the cash. Liz McDonald reports.
Surviving owners of a crumbling Christchurch waterfront apartment block and the buyer keen to redevelop it hope a judge’s ruling has ended a long dispute over the site.
Cave Rock Apartments owners first fought their insurance company over their earthquake-damaged Sumner homes, then fought among themselves on how to split the payout.
During that time, part of the complex was demolished and most of the remainder has sat uninhabitable.
Developers Citadel Property have made an offer for the property, saying they have ‘‘exciting new plans’’ for it.
The property included 49 apartments and underground car park, plus the Cave Rock Tavern. Fourteen owners have since died, with their estates now part of the property’s body corporate.
In the High Court last week, Justice John Gendall ruled in favour of the body corporate after it sued dissenting owner VXJ Holdings to resolve the impasse. The judge said the insurance proceeds must be distributed and the sale to Citadel Property could go ahead.
VXJ Holdings’ directors own one of the apartments plus the tavern, and were the complex’s original developer. Two other owners had also disagreed on how to divide the insurance proceeds, with the dispute hinging on different valuations.
The judge described the dispute as acrimonious, and said a dysfunctional relationship had developed between the body corporate committee and the dissenting owners.
The complex could realistically only be sold as one property, the judgment said.
VXJ Holdings may yet appeal the ruling, but did not respond to a request for comment.
Body corporate head Mike White said they were ‘‘delighted’’ to have won the court case and hoped this was the end of the dispute.
‘‘It’s been a long haul for us, and some of the owners didn’t make it. It means we can now at last stop paying rates after eight or nine years and move on.
‘‘Now that site can be tidied up and I’m confident the new developers with their project will do a good job.’’
The body corporate received a $21 million insurance settlement after the complex was deemed unable to be repaired, and has already distributed $17m to members.
If the decision is not appealed, the body corporate will pay out
‘‘It’s been a long haul for us, and some of the owners didn’t make it.’’ Mike White
Body corporate head
the rest, as well as the $4.8m Citadel Property has agreed to pay.
There is also money from preearthquake leaky building settlements from both Christchurch City Council and the developer.
Many Sumner residents have expressed frustration with the deteriorating property, which has been growing weeds while the remaining apartments have fallen into ruin.
Jonathan Lyttle, a director of Citadel Property, was cautiously optimistic.
‘‘We cannot really say much until the appeal period ends. It would be remiss to talk about these exciting plans we have in case we don’t end up owning it.’’
Lyttle would not be drawn on whether they planned new apartments or whether any development would include commercial premises. The land is zoned for medium-density residential use.
The existing apartment were built in the late 1990s to a design by architect Peter Beaven.