Luxury hotel developer Kilmour Properties in liquidation after delays and cost overruns

The property developer behind one of Christchurch's newest hotels is in liquidation.

After completing the luxury $40 million Sudima Hotel and attached office building, Kilmour Properties 2014 Ltd sold the complex to the Sudima chain in May. The hotel opened in June.

Kilmour's Auckland shareholders then put the company into liquidation with at least 17 creditors, including the Christchurch City Council.

The sale has been settled and the price, which has not yet been disclosed, is understood to be a little over $30m.

Kilmour's sole director is Neil Barr. Its shareholder is St Francis Trustee Ltd, which is made up of a group of Auckland investors with Barr as the sole listed director and shareholder.

Creditors include building companies, consultants, and suppliers.

The first report from liquidator Clive Bish, of Ecovis KGA Ltd, said the hotel development "did not eventuate entirely as planned".

"The liquidators understand that the project suffered considerable delays that caused cost overruns, leaving a significant debt due to the funders upon completion, together with other unpaid amounts to the construction contractor and other consultants," the report says.

Read the full article on stuff.co.nz here



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