Springpark developer Gapes liquidates 'unused entity' as part of tidy-up
Tony Gapes, the developer building Springpark, which is among Auckland's largest residential projects, has liquidated one of his investment vehicles, saying he is tidying up loose ends by closing down unused entities.
Victoria Street West appointed liquidator John Gilbert of C&C Strategic on April 10, documents lodged with the Companies Office show. Two days before going into liquidation Victoria Street West changed its name from RW Corporate, and had been known as Redwood Group between September 2006 and October 2014.
At the same time, another wholly owned Gapes company changed its name back to Redwood Group, one day after having changed it to Victoria Street W. It was earlier known as Barnaby Property, before changing it to Redwood Group in October 2014.
In an email to BusinessDesk Gapes said Victoria Street West was an unused entity, and "after what we have been through in the last few years we are starting to go through and tidy up a lot of our old entities so we have no loose ends hanging around going forward."
The developer said more liquidations may follow as his accountant goes through various company structures. Gapes is listed as the shareholder and director of six companies, of which he is the sole shareholder of five, according to the Companies Office.
Gapes is building 424 affordable townhouses and apartments for his Springpark residential development in the Auckland suburb of Mount Wellington. In May last year, Gape's majority owned Panama Road Developments, the developer responsible for Springpark, was put into receivership when Crown Finance demanded repayment, leaving Panama Road owing secured creditors $2.5 million. The company emerged out of receivership two months later and the development is now fully funded, Gapes said.
Springpark's website names Redwood Group as the developers, however Gapes said in his email Panama Road was the developer. Gapes said the first 160 homes were under construction with the first home expected in June.