Seascape developer in receivership: Experts split on future of 56-level partly finished apartment tower

Construction experts are divided over what the future of Auckland’s partly completed Seascape apartment tower could look like.

Shundi Customs, the developer of the 56-level building, went into receivership on Wednesday.

Calibre Partners’ Neale Jackson and Brendon Gibson were appointed as receivers by China Construction Bank.

Some in the sector have talked of the tower now only being fit for demolition because so much of it has stood exposed to the elements for so long.

“It’s going to be New Zealand’s biggest demolition job,” said one construction expert, highly sceptical about its future.

Another said he heard that salt water has been seeping into the basement over the years, degrading the steel reinforcing.

The exterior design and apartments no longer met the tastes of modern luxury buyers, that person said.

“The luxury apartment market in the CBD is pretty much dead anyway,” the person said, citing Winton Land delaying its new retirement village in the Wynyard Quarter.

Seascape was planned before the 2016 Unitary Plan was passed, which allowed smaller apartments, that person said.

Another expert estimated completion could take three years and cost about $300 million.

But that is before knowing the full extent of damage from being left open for so long.

The head of a major house-building business said all the glass curtain walls would need to be removed and replaced.

Such systems were made to be installed and completed, not partially installed and left for so long.

Other sector experts are looking at whether the building should be converted from residential to commercial, saying that could make it viable.

“Our very own Hotel Pyongyang,” said another person, referring to an unfinished North Korean skyscraper.

What happens to those who paid deposits on some of the 221 units remains unclear. The receivers could list them as unsecured creditors.

The first report must be completed no later than two months after Wednesday’s appointment.

Auckland Council can’t do a lot unless Seascape is a danger to people’s lives.

Building consents general manager Ian McCormick has said the Building Act only permits councils to step in where a building has deteriorated so much that it is considered dangerous.

“Maintenance of the Seascape building is reviewed regularly and so it is highly unlikely that it will meet this criteria in the near future.

“Outside of this, there are very limited powers under the Building Act that require a building’s owner to carry out work,” McCormick said.

Little work has taken place since August 2024, when builder China Construction suspended its contract and subcontractors all left the once-busy, soaring tower.

The Building Disputes Tribunal issued an August 2, 2024 determination in favour of China Construction in the dispute between it and Shundi Customs over the stalled Seascape skyscraper apartment tower.

That showed the builder had been granted a charging order over the downtown city construction site owned by the development business.

Adjudicator John Green’s 119-page decision granted the order as well as awarding $33m to be paid by the developer. The money went unpaid so in late August, 2024, the builder wrote to all the subcontractors, suspending work.

But in response to that, Shundi Customs took the builder to the High Court at Auckland, seeking for China Construction to complete paperwork in China.

The developer demanded the builder secure the necessary documents so that if it succeeded legally against China Construction, it could collect money from the builder.

China Construction had not registered a parent company guarantee with China’s State Administration of Foreign Exchange, that case revealed.

By March last year, China Construction had won the right to enforce its $33m claim against Shundi Customs.

In late March last year, Justice Greg Blanchard in the High Court at Auckland backed China Construction New Zealand against developer Shundi Customs over that $33m statutory demand.

Then, a new builder was appointed. Last April, a Shundi Customs spokesman said Icon would replace China Construction.

But little progress appeared to occur and neighbours began complaining about the nuisance from what they perceived to be a largely dead site.

Last month, some hopeful signs emerged, with a new structure erected near the top of the tower.

At the time, Jillie Clarke of Shundi said the crash deck at level 47 was required to enable apex works to be undertaken in a safe and compliant manner.

“It provides critical protection to the public by mitigating the risk of falling objects and tools during high-level works.

“Installation of the crash deck is a mandatory prerequisite before any modifications can be made to the apex scaffolding.”

On Wednesday the receivers said their immediate priority was ensuring the development continued to be safe and secure.

“Our focus will then move to assessing options that will see funds generated to repay creditors. Seascape is a partially completed development. While we will move as quickly as possible to assess options, it may take some time considering the nature of the asset,” Gibson and Jackson said.

Seascape timeline:

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.