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Receivers find new operator

A "preferred operator" has been identified to operate the two stage 1 hotels at the billion-dollar Kawarau Falls Station development in Queenstown.

But receiver Grant Graham, of KordaMentha, said he would not name the operator until the deal was finalised.

In an email to the Otago Daily Times yesterday, Mr Graham said the receivers were working through commercial arrangements with the party.

"We are pleased with how the site is progressing as we enter the business end of the build," he said.

Stage 1, which includes a five-star hotel, a four-star hotel and three apartment buildings, had staggered completion dates, he said.

"The whole of stage 1 will be completed by August with a targeted opening date of September. Exact timing will be determined by completion of infrastructural work, reading etc," he said.

A 98-room four-star Quadrant hotel was originally due to open on the Frankton site earlier this year and a 177-room five-star Westin hotel had been taking bookings for a March opening.

However, the project was put in doubt when two companies associated with stage 1 of the development, Melview (Kawarau Falls Station) Investments Ltd and Melview (Kawarau Falls Station) Development Ltd, went into receivership in May.

Work continued despite the two Melview companies owing $180 million to Bank of Scotland International.

The Quadrant is owned by Melview Developments.

Spokesman David Peach said it was up to the receivers who would operate the hotels.

The Westin label is owned by Starwood Hotels and Resorts.

Spokeswoman Alison Boyd said she could not say whether The Westin would be moving into the site, but confirmed the chain had stopped taking bookings.

New Zealand Hotel Council Queenstown chairwoman Victoria Shaw has previously told the ODT she had heard both the Westin and the Quadrant were pulling out of the site.

Ms Shaw said the receivers were now looking for an alternative hotel chain to operate at the site.

She said stage 2, which includes an InterContinental hotel with a 1000-seat conference centre, needed to be completed to attract corporate travellers and make the hotels viableIt is unclear whether stage 2 will proceed since Peninsula Rd, which owns the land earmarked for stages 2 and 3, went into receivership last week.

Hawkins Construction is contracted to build the 177-room five-star hotel. Chief executive Chris Hunter referred all comment to the receiver.

Rilean Construction is contracted to build Reserve and Central South, which are stage 1 apartment complexes. Director Stephen McLean said stage 1 was progressing well and was due to be completed next month.

Naylor Love director Trevor Kempton said his company was contracted to build two stage 1 apartment complexes and completion was "imminent".

Meanwhile, Hawkins Construction was involved in a dispute with a sub-contractor regarding a "payment schedule". CBD Construction had been sub-contracted by Hawkins to provide all the carpentry work.

CBD construction director Grant Blackmore said his company's 50 carpenters had stopped work at the site last week.

"Hawkins has terminated our contract and we are now off site. I suppose it is in the hands of our solicitor," he said.

 

 

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