Proposed $600m Auckland development scuttled

A proposed $600 million inner-city Auckland development project has been scuttled.

Westpac had called a halt to funding the 20-building, 2.9ha Rhubarb Lane project, The New Zealand Herald reported today.

The land is the old Auckland City Council works depot, now owned by developer Jamie Peters of Starline Group.

Westpac, the first mortgagee, has told Bayleys to sell the land, and Mr Peters says the matter is out of his hands.

Bayleys will auction the property on December 10.

Auckland City Mayor John Banks said he was worried about the impact of the financial crisis on the commercial property market, particularly in central Auckland.

Auckland City staff have reported being contacted by developers who held resource consents and told they would be postponing construction work indefinitely because of the economic situation.