Work continues on the Kawarau Falls luxury resort
development. Photo by Matt Stewart.
With an announcement expected in a week on the future
hotel operator for the troubled $ 1 billion Kawarau Falls
development and resort, due to be completed and fully
operational in March 2011, the Queenstown Times takes a look at
the highs - and lows - of the development.
2008
Construction begins on the Kawarau Falls Station development,
which will underpin the construction industry in Queenstown
over the next four years.
About 800 labourers are expected to be employed on the site
by mid-2009, with the five-star, 178-room Westin hotel and
four-star Quadrant, incorporating 200 designer studio and
one-bedroom apartments, with restaurants, bars and a boutique
cinema, both to open in 2009.
The five-star, two-level Intercontinental will feature
270-degree views and dining, gym, spa and pool options and is
set to open in 2010.
May 2009
KordaMentha is appointed receiver of Melview (Kawarau Falls
Station) Developments Ltd and Melview (Kawarau Falls Station)
Investments Ltd by Bank of Scotland International, which is
understood to have a first mortgage of up to $513 million.
Funding is secured for two more weeks' construction until all
options are assessed.
August 2009
The first receiver's report shows the two companies owe a
total of $114.8 million to creditors - about $117 million is
owed to the bank and $19 million is owed to the second
mortgagee, Hanover Finance.
November 2009
Hanover Finance, operating under a five-year moratorium,
predicts the next stage of the project could begin soon. The
Otago Daily Times reports stage 1 is expected to be
completed in "early 2010", with a five-star, 177-room Westin
hotel, and a 221-room InterContinental. A 195-room Quay West
Resort Queenstown, to be operated by Mirvac Hotels and
Resorts chain, is also planned for the site.
February 2010
The ODT reports the five-star Westin hotel may not be
opening at Kawarau Falls Station Development, with Starwood
Hotels and Resorts, which owns the Westin label, confirming
it has stopped taking bookings for the Queenstown site.
Stage 1 is now reported to be completed by April this year.
More than $67 million has been poured into the development in
the six months since the two companies associated with stage
one were placed into receivership.
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