Creditors claiming $18m-plus from luxury Takapuna apartment developer
Saturday, 21 December 2024
An Auckland and Christchurch-based property developer has racked up over $18 million in creditor claims so far for two companies in receivership, managing construction for Takapuna’s Loxley Apartments on Auckland’s North Shore and a development in Christchurch.
Deloitte receivers released the first report for S5 Consulting Group last Tuesday. The company was placed into receivership on October 31 by secured lender Bizcap NZ for defaulting on loan payments.
Meanwhile a related company also in receivership, Blue Skies GCO, has more than $17m in creditor claims so far with the total amount of claims still unknown, according to the company’s first receivership report released on December 13. Andrew Bendemski is the sole director for both companies.
Blue Skies GCO was placed into receivership on October 8 with Thomas Rodewald of Rodewald Consulting appointed as the receiver.
GCO Group, a company that also lists Bendemski as its sole director, holds 75% of its shares, while S5 GCO Capital holds 20% of shares, with the remaining 5% held by Carole Aburn.
The company was developing a site at 104H Johns Road, Christchurch with funding from mortgage investment firm Alpha First Securities.
Rodewald told The Post the property has not been sold but that there was “reasonable interest” from potential buyers. “If it’s not sold then it will be on the market in February,” he said.
Secured creditors for Blue Skies GCO include Alpha First Securities, claiming $8.2m, Bizcap NZ claiming another $1.1m, while Rooney Earthworks is claiming $537,000. Unsecured creditor claims are at $7.2m for trade creditors and other loans.
Deloitte liquidators David Webb and Robert Campbell were appointed joint receivers for S5 Consulting on November 1. Creditor claims came in at $1.18m.
Secured lenders for S5 Consulting include Bizcap NZ claiming $1.1m, Carters Building Supplies claiming $15,000, financiers Flexicommercial claiming $58,000, equipment rental business United Rentals claiming $3000, and Bedemski’s S5 GCO Capital Partnership claiming an unknown amount.
Inland Revenue is claiming $140,000 from S5 Consulting while no unsecured creditors have been identified yet. Receivers said the company has no employees. S5 was responsible for contracting and payment to subcontractors.
At the time of the receivership, S5 Consulting was involved in a joint venture agreement to develop the Loxley Apartments in Takapuna. Receivers tried to get information about the development from Bendemski “to ascertain whether it was viable for trading to continue” but have not received any information.
“Despite numerous requests of the director of the company for information relating to the company, the receivers are yet to receive any substantive information to assist them. The director has not responded to recent requests for such information leading up to the completion of this report,” Webb and Campbell said in S5 Consulting’s first receivership report.
“While some claims have been made in the receivership by sub-contractors, it remains unclear as to the extent to which others have been paid.”
“The director of the company had been attempting to refinance the existing loan with another party but was unsuccessful,” Webb and Campbell said.
Receivers said the company did not own any property but owned three vehicles which had not been located to date. No assets had been realised for S5 Consulting.
It was reported early this month that Bendemski was developing subdivisions in Cashmere, Christchurch and Wānaka until the mortgagees of both properties put them up for sale earlier in the year over defaulted loans. The sites have a joint market value close to $30 million and both remain on the market.
Receivers have now been appointed to run Bendemski’s companies Bowenvale GCO Group Ltd, which owns the Bowenvale Heights subdivision project at the end of Bowenvale Ave in Cashmere.
Deloitte liquidators have been approached for comment. Bendemski could not be reached for comment.